Gas tax bill dies

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HILO — A bill that would have increased Hawaii’s fuel tax to fund state highway improvement projects has died.

State Senate Bill 1012, as last amended, would have increased the gas tax from 16 cents to 26 cents per gallon. It also would have bumped annual vehicle registration fees by $5 and raised the annual per-pound motor vehicle weight tax, increasing total yearly fees for the average Hawaii driver by about $13-$16, depending on vehicle weight.

The bill died in the Senate. Its companion House Bill 1146 also died.

The bill was part of Gov. David Ige’s plan to generate funding for improving and maintaining state highways. It had received strong support from the state Department of Transportation, which said in testimony it needed $100 million in additional funding for its highways program.

Last year, a similar gas tax increase failed to pass, spurring the DOT to delay new “capacity” projects indefinitely, such as building new roads and further widening of Highway 130 in Puna.

Hawaii County Public Works Director Frank De Marco said last week the county plans to paint new lines on a portion of Highway 130 to provide four lanes of traffic, but that effort won’t involve widening the road — which remains on hold due to the continued lack of funds.

The only DOT capacity project on the island to get funded last year was the latest realignment project for Saddle Road, which is expected to wrap up in August.