Alternative Fuel Tax Rate

A distributor of any alternative fuel used to operate an internal combustion engine must pay a license tax of $0.0025 for each gallon of alternative fuel the distributor sells or uses. In addition, a distributor must pay a license tax for each gallon of fuel sold or used by the distributor for operating a motor vehicle on state public highways according to the following rates:

Fuel Type Tax
Ethanol 0.145 times the rate for diesel
Methanol 0.11 times the rate for diesel
Biodiesel 0.25 times the rate for diesel
Propane 0.33 times the rate for diesel

For other alternative fuels, the rate is based on the energy content of the fuels as compared to diesel fuel, using a lower heating value of 130,000 British thermal units per gallon as a standard for diesel, so that the tax rate, on an energy content basis, is equal to one-quarter the rate for diesel fuel. Counties may impose additional taxes.

(Reference Hawaii Revised Statutes 243-4 and 243-5)

Jurisdiction: Hawaii

Type: Laws and Regulations

Technologies: Biodiesel, Ethanol, Hydrogen Fuel Cells, Natural Gas, Propane (LPG)

See all Hawaii Laws and Incentives.