REQUESTING THE CITY AND COUNTY OF HONOLULU'S DEPARTMENT OF BUDGET AND FISCAL SERVICES, IN CONSULTATION WITH THE DEPARTMENT OF CUSTOMER SERVICES, TO STUDY THE FISCAL AND POLICY IMPACT OF THE ACTIVE-DUTY MILITARY VEHICLE WEIGHT TAX EXEMPTION.

SR146

THE SENATE

S.R. NO.

146

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE RESOLUTION

REQUESTING THE CITY AND COUNTY OF
HONOLULU's DEPARTMENT OF BUDGET AND FISCAL SERVICES, IN CONSULTATION
WITH THE DEPARTMENT OF CUSTOMER SERVICES, TO STUDY THE FISCAL AND POLICY IMPACT
OF THE ACTIVE-DUTY MILITARY VEHICLE WEIGHT TAX EXEMPTION
.

WHEREAS, under federal
law, including the Servicemembers Civil Relief Act (50 U.S.C. � 4001),
nonresident active-duty military personnel stationed in Hawaii are
exempt from certain state and local personal property taxes,
including motor vehicle weight taxes; and

WHEREAS, Hawaii law
further provides vehicle weight tax exemptions for certain active-duty military
personnel and members of the National Guard and Reserves under HRS � 249-6.5;
and

WHEREAS, according to the City
and County of Honolulu's Department of Customer Services, in early 2025, there
were 54,764 active-duty service members stationed at a military installation on
Oahu who are residents of another state, or spouses who claim the same
legal residence of a member of the U.S. Armed Forces on active duty on Oahu,
who were exempted from payment of County of Honolulu and Hawaii motor vehicle
weight taxes, and certain other fees, for vehicles registered in their name;
and

WHEREAS, their exemptions
specifically apply to the Honolulu County vehicle weight tax, state weight
tax, state registration fee, highway beautification fee, and if applicable, the
electric vehicle/hybrid/alternative fuel vehicle fee; and

WHEREAS, as road
maintenance and infrastructure costs continue to rise, there is increasing
pressure on state and county revenue sources; and

WHEREAS, the vehicle
weight tax, representing the largest component of fees and taxes related
to vehicle registration, is a significant source of revenue for county
transportation infrastructure, road maintenance, and related public services;
�
and

WHEREAS, the number
of active-duty military personnel stationed on Oahu is
substantial relative to the island�s total population; and

WHEREAS, equity in tax
policy requires periodic review to ensure fair distribution of the costs of
public infrastructure among all users of state and county roads;
and

WHEREAS, the fiscal
impact of the military vehicle weight tax exemption on the City and County of
Honolulu has not recently been comprehensively analyzed in a publicly available
report; now, therefore,

BE IT RESOLVED by the Senate
of the Thirty-third Legislature of the State of Hawaii, Regular Session
of 2026, the City and County of Honolulu is requested to conduct a
study examining the fiscal and policy impacts of the active-duty military
vehicle weight tax exemption; and

BE IT FURTHER
RESOLVED the study is requested to include, but not be limited to:

1.

The
number of active-duty military members and the associated vehicles for which
they claim exemptions within the City and County of Honolulu;

2.

The
estimated annual amount of county vehicle weight tax revenue and state
vehicle weight tax revenue foregone as a result of the exemption over the
past five fiscal years;

3.

A
projection of anticipated revenue impacts over the next five fiscal
years;

4.

Administrative
costs associated with implementing and verifying eligibility for the
exemption;

5.

An
assessment of the proportion of total registered vehicles represented by
exempted military vehicles; and

6.

Identification
of any federal legal constraints affecting the County�s authority in this area;
and

BE IT FURTHER
RESOLVED the City and County of Honolulu is requested
to transmit a report of its findings and any recommendations to the
Legislature no later than twenty days prior to the Regular Session of 2027;
and

BE IT FURTHER RESOLVED that
certified copies of this Resolution be transmitted to certified copies of
this Resolution be transmitted to the Mayor of the City and County of Honolulu
and the Director of Budget and Fiscal Services of the City and County of
Honolulu.

OFFERED BY:

_____________________________

Report Title:
�

Vehicle
Weight Tax; Military Exemption; Honolulu County