HI HB260

Eliminates the 16-cent state fuel tax on gasoline and other liquid fuels (except diesel, aviation fuel, and naphtha) for all Hawaii counties effective for taxable years beginning after December 31, 2025.

Eliminates the 15-cent state fuel tax on diesel oil used in motor vehicles on public highways for all Hawaii counties effective for taxable years beginning after December 31, 2025.

Retains 1-cent state tax on diesel oil and aviation fuel, and 2-cent state tax on naphtha used in power-generating facilities.

Retains county-level fuel taxes that are levied pursuant to section 243-5.

Requires distributors to pass tax savings from the repeal of state fuel and oil taxes to consumers as much as practicable for taxable years beginning after December 31, 2025.