HB 510 Summary

• Establishes a refundable vehicle registration fee tax credit of $25 for individual taxpayers and $50 for married couples filing jointly who are eligible for a food/excise tax credit greater than $0.

• Requires taxpayers to have paid the annual state vehicle registration fee under section 249-31 during the taxable year for at least one vehicle (or two vehicles for married filing jointly).

• Addresses regressive taxation by providing relief to low- and middle-income residents who disproportionately bear the burden of gasoline and vehicular weight taxes, particularly those in rural areas.

• Amends section 235-55.85 of Hawaii Revised Statutes to add the vehicle registration credit alongside existing food/excise tax credits.

• Takes effect July 1, 2050.