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Motor Vehicle Weight Tax Cut

At a glance

  • What: Bill 47 (2026) relates to the motor vehicle weight tax. Chair Waters said it would cut annual vehicle registration fees by 20 percent.
  • Where it stands: passed second reading August 12, 2026, 6-2. Aye: Cordero (with reservations), Kiaʻāina (with reservations), Nishimoto, Okimoto, Tupola, Waters. No: Tulba, Weyer. Dos Santos-Tam absent.
  • Money: the Department of Transportation Services estimated a $40 million revenue loss; Tulba cited $30 million a year. The city pays roughly $140 to $150 million a year in debt service.
  • Next: third reading and Budget Committee discussion; several members want a targeted version.

Debate (August 12, 2026)

  • Morton, Director of Transportation Services, opposed the bill and hoped it would not advance. He said the weight tax is equitable because heavier vehicles damage roads more, offered to recalculate the impact if commercial vehicles were excluded, mentioned an ad valorem (value-based) tax as an alternative used elsewhere, and agreed to give a detailed accounting of how registration revenue is spent. A new contract in place since July 1, 2026 lets the department install speed humps faster.
  • Testimony: Sula (support), Waikoloa (oppose), State Representative Darius Kila (support), Kam of Oʻahu Transit Riders (general comment).
  • Cordero suggested more relief for passenger vehicles and higher or unchanged rates for commercial vehicles, and worried about local matches for federal grants.
  • Tulba opposed the loss of transportation revenue without a replacement source.
  • Tupola supported changing the fees, noting Honolulu's rates are far higher than other counties and that high fees can lead owners to abandon vehicles.
  • Waters and Weyer raised a targeted approach with the State Department of Transportation; Kiaʻāina suggested relief aimed at kūpuna and a holistic review of taxes and fees.

Sources

Log

2026-08-12 - Regular Council

Second reading passed 6-2 (committee report 196(26)); see the vote above.

2026-07-08 - Regular Council

First reading passed 8-0 (Tulba absent). Waters said the measure cuts annual registration fees by 20 percent and looked forward to Budget Committee discussion. Billionaire and Kefalas testified in support.