Hawaii 2024 Regular Session

Hawaii Senate Bill SB1408

Introduced
1/25/23  
Refer
1/30/23  
Introduced
1/25/23  

Caption

Relating To The Road Usage Charge Program.

Impact

The bill proposes an amendment to Chapter 249 of the Hawaii Revised Statutes, establishing a state mileage-based road usage charge calculated at a rate of 0.8 cents per mile. The initial charge would start with electric vehicles, phasing out the existing $50 annual registration surcharge for these vehicles. This change is intended to ease the transition to a broader statewide system that could eventually encompass all passenger vehicles and light-duty trucks by the end of 2033. By linking road use to vehicle inspection records through odometer readings, the implementation seeks to minimize administrative costs and integrate seamlessly with existing systems.

Summary

SB1408 proposes the establishment of a road usage charge program in Hawaii, primarily aimed at replacing dwindling fuel tax revenues with a per-mile charge applicable to electric vehicles starting July 1, 2025. This bill acknowledges the increasing number of fuel-efficient electric and alternative fuel vehicles in Hawaii and aims to create a fair system where all vehicle owners contribute to the maintenance of the state’s roadway infrastructure according to their actual usage. By implementing a mileage-based charge, the legislature seeks to ensure that funding for road maintenance remains sustainable, addressing the challenges presented by declining fuel tax revenues.

Contention

While the bill is designed to create a more equitable funding mechanism for Hawaii's transportation infrastructure, it may face scrutiny over concerns regarding the fairness and practicality of the new road usage charge. Critics may argue that mileage-based charges could disproportionately affect those who rely on their vehicles for longer distances, particularly in rural areas where public transportation options are limited. Additionally, there may be concerns over how the charge will be administered, including the accuracy of mileage tracking and the potential for increased administrative burdens on vehicle owners and local governments. The choice for electric vehicle owners to opt for a registration surcharge instead of the mileage charge until 2028 is intended to provide flexibility, but it also raises questions about long-term compliance and revenue generation.

Companion Bills

HI HB1110

Same As Relating To The Road Usage Charge Program.

HI SB1408

Carry Over Relating To The Road Usage Charge Program.

Similar Bills

HI HB1110

Relating To The Road Usage Charge Program.

HI HB1110

Relating To The Road Usage Charge Program.

CA AB1410

Penalty assessments: emergency services and children’s health care coverage funding.

HI SB1568

Relating To Taxation.

HI SB1568

Relating To Taxation.

HI HB1363

Relating To Taxation.

HI SB1506

Relating To Transportation.

HI SB1506

Relating To Transportation.