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Hawaii lawmakers are pushing a plan that could increase the fuel taxes that drivers pay at the pump to help fix the state’s crumbling roads and infrastructure.
Nationwide, the total amount of money available to states from the Federal Highway Trust Fund has declined. In Hawaii, per capita spending of those federal dollars fell 1.6 percent during the five-year period that ended in 2013, according to an analysis by the Associated Press
“It’s not only disturbing, but it’s downright irresponsible,” said Rep. Matthew LoPresti (D, Ewa Beach), vice chairman of the House Committee on Transportation. “States are going to have to step in to cover the gap. … We have a crumbling infrastructure in this country, and I know it’s not just in Hawaii, it’s all across the nation.”
A proposal in the state House of Representatives seeks to fill some of that gap by shifting the way the fuel tax is calculated.
The tax is currently set up to draw down 17 cents for each gallon of regular fuel sold. The bill would shift the emphasis away from the amount of fuel sold and instead focus on the price of the fuel — a significant distinction in the age of fuel- efficient cars, when individuals’ consumption levels may be declining. The proposal states that the fuel tax would be either 17 cents per gallon or an unspecified percentage of the wholesale price, whichever is greater. It passed out of the House Committee on Finance on Wednesday, with the per- centage left blank.
Aloha Petroleum Ltd. was among the companies that op- posed the bill, saying they’re against “any attempt to increase taxes because they are ultimately passed on to consumers.”
The state Department of Transportation said in written tes- timony that it appreciates the intent of the bill, but that the proposed solution would create confusion for taxpayers and administrative challenges.
Meanwhile, the department plans to increase its budget for special maintenance projects by $70.9 million in both fiscal years 2016 and 2017, according to Gov. David Ige’s budget proposal. The majority of those maintenance funds will be used for road resurfacing projects, minor bridge repairs and major tree trimming, said Tim Sakahara, spokesman for the DOT, in an email.
