Hawaii SCR 155: 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.

Bill Text

THE SENATE
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII S.C.R. NO. 15^
MAR 1 6 2026
SENATE CONCURRENT
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.
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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
SCR SMO 2026-13
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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
House of Representatives concurring, 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;
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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
Concurrent 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.
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