SB 1468 Hawaii Senate · 2025 Regular Session

RELATING TO GENERAL EXCISE TAX EXEMPTIONS.

Summary

Repeals the general excise tax exemption for amounts received by independent sugar cane farmers. Repeals the general excise tax exemption for amounts received by a contractor of the Patient-Centered Community Care Program that is established by the United States Department of Veterans Affairs pursuant to title 38 United States Code section 8153. Effective 1/1/2026. (SD1)

Issues: ✗ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 13, 2025

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What changed between versions

SB1468 → SB1468_SD1 · 3 edits

MINOR

This bill repeals two existing general excise tax exemptions in Hawaii: one for independent sugarcane farmers and another for Patient-Centered Community Care program contractors. The changes will take effect on January 1, 2026, meaning these groups will no longer be exempt from state general excise tax on their income starting that date.

Scope change

The bill narrows the scope of tax exemptions by removing coverage for sugarcane producers and Patient-Centered Community Care contractors, while maintaining exemptions for other categories like insurance proceeds, disability income, and employee wages.

ELIGIBILITY

Removed tax exemption for amounts received by independent sugarcane farmers who sell to manufacturers, which previously exempted their gross proceeds from general excise tax.

Removed tax exemption for amounts received by Patient-Centered Community Care program contractors, which previously exempted actual costs paid to third-party healthcare providers from general excise tax.

TIMELINE

Added effective date of January 1, 2026, establishing when the new tax rules will apply to the affected groups.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 13, 2025

Committee

Reported from AEN (Stand. Com. Rep. No. 465) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 10, 2025

Upper · Passed

The committee(s) on AEN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in AEN were as follows: 5 Aye(s): Senator(s) Gabbard, Richards, DeCoite, Rhoads, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on AEN has scheduled a public hearing on 02-10-25 1:01PM; Conference Room 224 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to AEN, WAM.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 21, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors