The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Senate Committee on Transportation on Feb. 12, 2026.
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Feb. 12, 2026, 3:01 p.m.
Hawaii State Capitol
Conference Room 229 and Videoconference
To: Senate Committee on Transportation
Sen. Lorraine R. Inouye, Chair
Sen. Brandon J.C. Elefante, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY IN SUPPORT OF SB3337 — RELATING TO TAXATION
Aloha Chair, Vice Chair and other Committee members,
The Grassroot Institute of Hawaii supports SB3337, which would abolish the state’s 16-cent-per-gallon gasoline and 15-cent-per-gallon diesel fuel taxes.
This bill would lower the cost of living for Hawaii residents, who deal with some of the highest gas prices in the country.
In 2024, the state collected about $147 million from the gas tax and $16 million from the diesel oil tax.[1] But as the bill notes, those revenues made up just 21% of the money in the state’s highway fund that helps cover the cost of maintaining roads and other vehicle infrastructure.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Liquid Fuel Tax Base & Tax Collections – Calendar Year Ending December 31, 2024,” Hawaii Department of Taxation, Nov. 17, 2025.
