HI SB2346

Repeals the state portion of the vehicle fuel tax effective January 1, 2013, while maintaining county-level fuel taxes and exempting small boat and aviation fuel from the state tax.

Increases the state vehicle weight tax effective January 1, 2013, with new rate schedules for vehicles based on net weight categories (current rates: 1.75 cents per pound up to 4,000 pounds; 2.00 cents for 4,000-7,000 pounds; 2.25 cents for 7,000-10,000 pounds; $300 flat rate over 10,000 pounds), though specific new rates are left blank in the bill text.

Authorizes the State and counties to implement a phased-in collection process allowing vehicle weight taxpayers to pay the increased tax in installments no more frequently than quarterly per fiscal year.

Addresses the declining effectiveness of fuel taxes due to improved vehicle fuel efficiency by shifting highway fund revenue to weight-based taxation.