HI HB260

Eliminates the 16 cents per gallon state tax on gasoline and other liquid fuels sold or used in all four Hawaii counties (Honolulu, Hawaii, Maui, and Kauai)

Eliminates the 15 cents per gallon state tax on diesel oil used for motor vehicles on public highways in all four counties

Maintains county-level fuel taxes, which will continue to be levied separately by each county

Requires distributors to pass tax savings on to consumers "as much as practicable" beginning January 1, 2026

Hawaii currently has the fifth highest state fuel tax burden at nearly 50 cents per gallon of gasoline