Report: Hawaii has fourth highest gas taxes

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gas pumpThe Tax Foundation has released its latest study on gasoline taxes, and no surprise, Hawaii ranks near the top when it comes to taxes the government charges on gasoline in 2014.

Hawaii ranked fourth highest at 48.05 cents/gallon.


California ranked first at 52.89 cents/gallon with New York second at 49.86 cents/gallon and Connecticut third at 49.3 cents/gallon.

The states with the lowest gas taxes include Alaska at 12.4 cents/gallon, New Jersey at 14.5 cents/gallon, and South Carolina at 16.75 cents/gallon.

While gas taxes are typically used to fund transportation infrastructure maintenance and new projects, Hawaii’s gas taxes have been siphoned off by the legislature in previous years to balance the state budget.

Richard Borean, a spokesperson for the Tax Foundation, said generally more favorable than other taxes because they at least loosely connect the users of roads with the costs of enjoying them.

However, he added some of the Tax Foundation’s recent analysis shows that many states do not rely on gas taxes and tolls as much as they could, and instead fund substantial amounts of transportation from other sources like income and sales taxes.





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