| |  Print This Article

Hawaii Transportation Costs to Climb Again

BY JIM DOOLEY - As rising gasoline prices drive up the cost of transportation in Hawaii, the Hawaii State Legislature is poised to pass laws that sharply increase the cost of owning a car or truck.

Bills to increase vehicle weight taxes and registration fees would generate more than $55 million, most of it earmarked for highway repair and maintenance.

Those fee and tax hikes would come on top of similar hikes imposed in recent years by the counties.

One pending bill, SB 1329, would add an extra dollar to the state vehicle weight tax. For an average passenger vehicle weighing 3,500 pounds, the current tax is 75 cents per hundred pounds and the weight tax is $26.25. At $1.75, the weight tax would be $61.25 – lightening your wallet by $35.

The weight tax for larger vehicles that weigh 4,001 - 7,000 pounds would rise under the bill to $2 and $2.25 for vehicles that weigh between 7,001 and 10,000 pounds. The largest vehicles are in line for the largest tax increase, from the present $15 per hundred pounds to $300.

The Transportation Department estimates the measure would generate $32.9 million. The Tax Department puts the increase at $34.5 million.

Then there is the state registration fee – also not to be confused with similar fees charged by the counties.

Under SB 1328, the state fee would rise $20 per vehicle, regardless of size, to $45.

Transportation officials say the measure would raise an extra $22.9 million, mostly for the state Highway Fund, which lawmakers and elected officials have periodically tapped over the years for other fiscal needs.

Final versions of the measures have not been approved by lawmakers.

Because the taxes are collected once a year, when vehicle registrations must be filed, car and truck owners don’t notice the increases right away.

“The cost of registering a car and paying the weight taxes has become so mind numbing elected officials hope drivers won’t notice,” the Tax Foundation of Hawaii said about the proposed increases.

Protests were voiced during legislative hearings by individuals and businesses alike.

Katherine Kupukaa of Mililani, who said she is unemployed, told lawmakers she has a difficult time paying vehicle fees now.

“The amount that I am required to pay has increased steadily over the last six years,” she wrote.

“Last December I waited until the last day of the month (to pay) because I didn’t have the money,” she continued.

Kupukaa finished with a request to legislators: “If you still go forward with passing this bill, are you able to put a gradual increase over four years so our pocketbook will not be dramatically impacted?”

The Hawaii Transportation Association, a trade group for the trucking industry, said in testimony that now is not the time to be adding to their costs of doing business.

“Oahu carriers were hit by the City & County of Honolulu’s increase of the vehicle weight tax in 2010 and this year, boosting or per vehicle cost an average of $400 in 2010 and another $400 this year,” said Gareth Sakakida of the HTA.

A fuel tax increase last year “added about $200 per vehicle per year” in costs, Sakakida continued. “The industry just cannot afford the kind of money you are seeking,” he said.

 

Short URL: http://www.hawaiireporter.com/?p=33026

2 Comments for “Hawaii Transportation Costs to Climb Again”

  1. [...] not thrilled about the legislature potentially raising the state vehicle registration and weight fees. However, I’d rather pay higher registration/weight fees instead of paying to fix my truck. I [...]

  2. This is the Democrat (as opposed to democractic) way of fixing government dilemmas - have the tax payers become the solution (more). Well, Oahu, you voted for a Democrat majority in the legislature- what did you expect?

    I'll just drive below speed limit, and slow down the traffic more, in protest.

    The City and State governments do not downsize - they bleed the population instead and think they can solve their finances that way. After busting-up a tire in a freeway pothole, of which there are many), i get a rise in the registration fees and vehicle taxes, which now the government claims they need to fix the potholes.

    The problem with the traffic congestion is not a problem of too many cars - it is a problem with the bottlenecks and system of the freeways, which are permitted to congest by the government so more people vote for Rail as the "solution".

    The government treats us as "expendable". Implicitly, they tell us: Don't like it? Leave!

You must be logged in to post a comment Login

News Cycle on The Rick Hamada Show








Recently Commented

  • Maring: This is my first time to visit your blog and I found very useful knowledge you done a great job, Keep more...
  • dkekaualua: you are absolutely correct Michael. Mayor and Rapozo knew exactly what they were doing. I know for a fact...
  • Muneer: I admire the valuable information you offer in your articles. I will bookmark your blog and have my children...
  • ione: Jimmy Pflueger: WYSIWYG
  • Military News: Receiving such kind of medal is indeed one of the highest honor a military personnel can get.,...