Hawaii State Legislature Raises Tax on Petroleum from $0.05 to $1.05 per Barrel

The Hawaii State Legislature has reported out of conference HB1271, which boosts what had been a state environmental response tax on petroleum of $0.05 per barrel to an environmental response, energy and food security tax of $1.05 per barrel.

Breakdown of the allocation of the proceeds of the tax hike include:

  • $0.05 of the tax on each barrel to an environmental response fund;
  • $0.55 to be deposited into an energy security special fund;
  • $0.10 to be deposited into an energy systems development special fund; and
  • $0.35 of the tax on each barrel deposited into an agricultural development and food security special fund.

The tax is to be paid by the distributor of the petroleum product.


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