LINDA LINGLEKURT KAWAFUCHIGOVERNORDIRECTOR OF TAXATIONJAMES R. AIONA, JR.

MARIE C. LADERTA

LT. GOVERNOR

DEPUTY DIRECTOR

STATE OF HAWAII

DEPARTMENT OF TAXATIONP.O. BOX 259
HONOLULU, HAWAII 96809

PHONE NO: (808) 587-1510
FAX NO: (808) 587-1560

August 9, 2004

DEPARTMENT OF TAXATION ANNOUNCEMENT 2004-06
RE: Decrease in Alternative Fuel Tax Rates effective July 1, 2004
Act 96, Session Laws of Hawaii 2004, encourages the use of alternative fuels by reducing
the fuel tax for ethanol, methanol, biodiesel and other alternative fuels, effective July 1, 2004.
By reducing the cost of alternative fuels businesses and residents may be encouraged to usevehicles that consume alternative fuels.
Kauai County Ordinance No. 816 (Ordinance No. 816) in conjunction with Kauai County
Council Resolution No. 2004-06, Draft 2, decreases and sets the Kauai County biodiesel fuel tax
rate to zero cents (0¢) per gallon on biodiesel sold or used in Kauai County effective July 1,2004. Ordinance No. 816 sets the Kauai County fuel tax on gasoline and diesel oil sold or usedon the public highways to 13 cents per gallon.
The Department has reevaluated the methodology of computing the alternative fuel taxrates. The revised calculation incorporates the new rates effective July 1, 2004. (See attached
Schedule of Fuel Tax Rates).
The applicable fuel tax forms are being revised to incorporate the decrease in thealternative fuel tax rates. The revised tax forms will be available shortly at the district offices of
the Department of Taxation and will be mailed to distributors.
Forms and other tax information may be downloaded from the Department's website atwww.state.hi.us/tax. If you know which tax form or publication you need, please callthe Department’s request line at 808-587-7572, or toll-free from the neighbor islands andcontinental U.S. at 1-800-222-7572. This service is available 24 hours a day, 7 days a week.

KURT KAWAFUCHI
Director of Taxation

HRS Section Explained: HRS Section 243-4.

Department of Taxation Announcement 2004-06
August 9, 2004
Page 2
Schedule of Fuel Tax Rates(Effective July 1, 2004)(Fuel tax rates in cents per gallon)
TYPE OF FUELAVIATION FUELAll Counties
DIESEL OIL (OFF HIGHWAY)DIESEL OIL (ON HIGHWAY)
City & County of Honolulu
County of Maui
County of Hawaii
County of KauaiGASOLINE & ALL OTHERLIQUID FUEL
City & County of Honolulu
County of Maui
County of Hawaii
County of Kauai
ETHANOL
City & County of Honolulu
County of Maui
County of Hawaii
County of Kauai
METHANOLCity & County of Honolulu
County of Maui
County of Hawaii
County of Kauai
BIODIESELCity & County of Honolulu
County of Maui
County of Hawaii
County of Kauai
LIQUID PETROLEUM GASCity & County of Honolulu
County of Maui
County of Hawaii
County of Kauai
ENVIRONMENTAL RESPONSETAX (per barrel)
City & County of Honolulu
County of Maui
County of Hawaii
County of Kauai

STATE TAXCOUNTY TAXTOTAL TAX

11---

1
1

16161616

16.5
18
8.8
13

32.5
34
24.8
29

16
16
16
16

16.5
18
8.8
13

32.5
34
24.8
29

2.4
2.4
2.4
2.4

2.4
3.8
1.3
1.9

4.8
6.2
3.7
4.3

1.9
1.9
1.9
1.9

1.8
2.9
1.0
1.4

3.7
4.8
2.9
3.3

4.0
4.0
4.0
4.0

8.3
0
2.2
0

12.3
4.0
6.2
4.0

5.2
5.2
5.2
5.2

5.4
4.3
2.9
4.3

10.6
9.5
8.1
9.55555-----5555