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DOT opposes eliminating state gas and diesel taxes; committee defers SB 3337

Senate Committee on Transportation · February 13, 2026

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Summary

The committee deferred SB 3337, a bill to eliminate state taxes on gasoline and diesel for certain vehicles, after DOT said those revenues fund highways and opposed the measure; the chair recommended deferral for further study.

Chair Inouye introduced SB 3337, a proposal to eliminate state taxes on gasoline and diesel fuel for certain vehicles. Department of Transportation witnesses stated opposition, saying gas-tax revenue is necessary to maintain highways and fund road projects.

HDOT (Robin Shishido) testified in strong opposition, and DOTAX filed written comments and was available for questions. After noting DOT's opposition and the potential impact on highway funding, the chair recommended deferral. The committee did not pass the measure and left it deferred for further consideration.