Taxes

Hawaii shifts from gas taxes to pay-by-the-mile fees

States are figuring out how to replace the gas tax as a go-to source of transportation revenue.
A 2025 Prologue electric sports-utility vehicle is charged at a Honda dealership Monday, July 22, 2024, in Highlands Ranch, Colo. (AP Photo/David Zalubowski)

Hawaii this month became the fourth state to enact a voluntary pay-by-the mile program in the face of declining gas tax revenues.

Hawaii’s, which launched on July 1, applies only to electric vehicle owners. They have the option to pay $8 per 1,000 miles they drive with a cap of $50, or choose a flat $50 annual fee. In 2028, the pay-by-the-mile charge will become mandatory. 

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