To replace an outdated tax.

Hawaii's fuel tax revenue, which provides approximately one third of state highways funding, continues to decrease as vehicles become more fuel efficient.

The Hawaii Department of Transportation (Hawaii DOT) has proposed a road usage charge (RUC), which would replace the current gasoline tax, which automatically charges customers $0.16 per gallon of gasoline purchased.[1]

Fourteen community meetings has been scheduled across the state to gather feedback on the proposal.

The road usage charge would presumably be added to the vehicle registration renewal bill, that uses mileage information from the safety check center.

I'm expecting owners of fuel efficient vehicles to oppose that proposal because they would be forced to contribute a fair amount of revenue to drive on the road.

Sources:

  1. "Community meetings scheduled for input on potential road usage charge for Hawaii." hidot.hawaii.gov. March 12, 2019.

 

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