Big Island gas-tax hike shelved

By Kevin Dayton
Advertiser Big Island Bureau

HILO, Hawai'i — Big Island Mayor Harry Kim's plan to increase the county gas tax by 6 cents a gallon has stalled, with Hawai'i County Council members instead considering raising the vehicle weight tax to provide extra money for road repairs.

Council Chairman James Arakaki said the Big Island has the lowest vehicle weight tax in the state, and said an increase is a more reasonable way to pay for street maintenance than raising the gas tax.

The council Finance Committee on Tuesday indefinitely deferred action on Kim's proposal to boost the gas tax from 8.8 cents a gallon to 14.8 cents.

Kim wanted to use the money for road work and to improve the island's modest bus system, but Arakaki said people called his office to complain about the proposed gas-tax increase.

He also said he is concerned that other forces are driving gas prices up on the world market and in Hawai'i.

"I'm looking at somewhere along the line, some places are going to hit $3 (a gallon), and the County Council's going to be blamed for making it $3, and all we're going to get is 6 cents," Arakaki said. "That's the perception."

Yesterday, regular, self-serve unleaded gas prices on the Big Island ranged from $2.12 per gallon in Hilo to $2.29 in Kona.

A higher gas tax would be a burden on people who live in rural areas and drive long distances to work, he said.

Arakaki said he agrees the county needs more money for road maintenance, and instead suggested increasing the county vehicle weight tax to raise an extra $2 million a year.

Such a move would be fairer, he said, since heavier cars and trucks cause more wear to county roads.

Arakaki said he is considering a plan to boost the weight tax from a half-cent per pound now to .75 cents per pound. For large trucks, the county weight tax would double, from 1 cent to 2 cents per pound, Arakaki said.

For a small pickup truck or economy car weighing about 3,000 pounds, the increase would boost the annual county weight tax from about $15.50 to about $22.50. The overall weight tax would be higher because the state also imposes a separate weight tax.

If approved, the weight tax increase would take effect Jan. 1.

County Managing Director Dixie Kaetsu said she needs to see Arakaki's proposal before commenting on the specifics, but in general the Kim administration believes the gas tax is a more equitable way to pay for road repairs, because the people who use the roads more would pay more.

She also said it would be easier for low-income residents to pay the gas-tax increase a bit at a time than to pay a weight tax increase as a lump sum once a year when renewing their vehicle registration.

"We're disappointed that there was not even any discussion on the proposal," she said. "If the council thought 6 cents was too much, a smaller increase could have been discussed."

She said the administration may try again with a proposal for a more modest gas-tax increase.

Staff writer Karen Blakeman contributed to this report. Reach Kevin Dayton at kdayton@honoluluadvertiser.com or (808) 935-3916.