June 5, 2000

RE: Act 85, Session Laws of Hawaii 2000 (Act 85), Relating to the Fuel Tax

Act 85, which was introduced as H.B. No. 2584, deletes unnecessary fuel tax reporting requirements and is part of the Lieutenant Governor's Slice Waste and Tape (SWAT) initiatives.  Act 85 became effective on April 27, 2000.

The fuel tax is imposed on distributors for each gallon of liquid fuel refined, manufactured, produced or compounded by the distributor and sold or used by the distributor in the State.  The tax is also imposed on liquid fuel imported by the distributor or acquired by the distributor from persons who are not licensed distributors which is sold or used by the distributor in the State.  See Hawaii Revised Statutes (HRS) § 243-4.  In addition to information regarding the imposition of the tax and exemptions, HRS § 243-10 currently requires distributors to submit information which is no longer used by the Department of Taxation.

Act 85 amends HRS § 243-10 by deleting the requirements that fuel distributors submit information about the total number of gallons of fuel imported and information about the fuel distributors' inventory.  The proposed amendments will reduce the filing burden for fuel distributors, thereby encouraging greater compliance, and will simplify reporting requirements and forms.

Forms and other tax information are available at the Department's website at:

On Oahu, forms may be ordered by calling the Department's Forms Request Line at:  808-587-7572.  Persons who are not calling from Oahu, may call:  1-800-222-7572 (toll-free) to receive forms by mail or 808-678-0522 from a fax machine to receive forms by fax.

Director of Taxation

HRS Sections Explained:  HRS Section 243-4,  243-10