Budget & Taxes (Sales Tax)

in committee · Hawaii · House Feb 2, 2026

HB 2555: RELATING TO GENERAL EXCISE TAX.

Exempts food and groceries from the general excise tax. Expands the general excise tax exemption implemented in 2024 for certain medical and dental services to include all medical and dental services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts food, groceries, and medical services from general excise tax, providing tax relief for essential household expenses.95% confidence ✓ HealthcareSupports HealthcareExpands tax exemption for all medical/dental services, reducing out-of-pocket costs and improving access to healthcare services.95% confidence

Sub-Topics Sales Tax Tax Incentives

Track

passed · Hawaii · Senate Feb 19, 2026

SB 2676: RELATING TO HOUSING.

Authorizes the Hawaii Housing Finance and Development Corporation to approve and certify general excise tax exemptions, including for non-contracting costs, for certain housing development projects developed under county housing incentive programs. Makes conforming amendments. Sunsets 7/1/2031. Effective 7/1/2050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes general excise tax exemptions for housing projects, providing direct tax relief to developers under county housing incentive programs.90% confidence ✓ HousingSupports HousingAuthorizes tax exemptions for housing development projects under county incentive programs, directly advancing affordable housing development through financial incentives.95% confidence

Sub-Topics Sales Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

Track

in committee · Hawaii · House Dec 8, 2025

HB 311: RELATING TO GENERAL EXCISE TAX EXEMPTION.

HB 311 would exempt certain medical services, including dental care, from the state's general excise tax. This change would directly affect healthcare providers who currently collect this tax on these services and patients who pay for them. The bill's key provision is to remove the tax burden for these specific medical services, making them more affordable. It does not change existing tax rules for other services or products.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts dental/medical services from general excise tax, providing direct tax relief for patients/providers and aligning with tax relief for lower-income essential services.95% confidence ✓ HealthcareSupports HealthcareExempts dental/medical services from excise tax, reducing costs and improving affordability for patients and providers.95% confidence

Sub-Topics Sales Tax Tax Incentives

Track

in committee · Hawaii · Senate Feb 2, 2026

SB 389: RELATING TO THE GENERAL EXCISE TAX.

Expands the general excise tax exemption established by Act 47, Session Laws of Hawaii 2024, to include amounts received by optometrists, audiologists, and chiropractors, for healthcare-related goods or services purchased under the Medicare, Medicaid, and TRICARE programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands general excise tax exemption for healthcare providers under Medicare/Medicaid, providing tax relief to covered professions per Act 47 (2024)92% confidence ✓ HealthcareSupports HealthcareExpands tax exemption for healthcare providers (optometrists, etc.) under Medicare/Medicaid, reducing costs and improving access to covered services.90% confidence ✓ VeteransSupports VeteransExpands tax exemption for TRICARE-related healthcare services, directly improving veterans' access to care under their existing benefits.85% confidence

Sub-Topics Sales Tax Tax Incentives Medicaid Medicare

Track

in committee · Hawaii · Senate Dec 8, 2025

SB 1505: RELATING TO TAXATION.

Establishes a definition for "premium cigar" that is distinct from a "large cigar" and adds a definition for "characterizing flavor" in the Cigarette Tax and Tobacco Tax Law. Excludes premium cigars from percentage excise tax. Establishes an excise tax at a rate of 50 cents per premium cigar.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new 50-cent excise tax on premium cigars, generating state revenue without targeting lower-income groups, aligning with fiscal management.95% confidence

Sub-Topics Sales Tax

Track

in committee · Hawaii · House Jan 28, 2026

HB 2135: RELATING TO TAXATION.

Establishes the Hawaii Farm TEAM Card Program. Establishes penalties for misusage of the Hawaii Farm TEAM Card program. Eliminates the general excise tax for qualifying agricultural materials.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates general excise tax for agricultural materials, providing tax relief to qualifying farms under GET exemption, directly advancing tax policy for agriculture.95% confidence

Sub-Topics Sales Tax

Track

passed · Hawaii · Senate Dec 8, 2025

SB 1333: RELATING TO TAXATION.

Authorizes the use of county surcharge revenues for transportation and housing infrastructure in counties having a population of 500,000 or less. Authorizes counties that have previously adopted a surcharge on state tax ordinance after July 1, 2015, to amend the uses of the surcharge. Extends the period within which a county with a population of 500,000 or less may collect a surcharge on state tax, under certain conditions, to 12/31/2047. Authorizes cost-sharing with private or other public developers for housing infrastructure projects funded by surcharge revenues. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes county surcharge revenues for transportation/housing infrastructure, directing existing tax funds toward public projects and aligning with fiscal responsibility and infrastructure funding.90% confidence ✓ HousingSupports HousingAuthorizes county surcharge revenues for housing infrastructure funding, directly advancing housing development and infrastructure projects in qualifying counties.95% confidence ✓ TransportationSupports TransportationAuthorizes county surcharge revenues for transportation infrastructure funding in counties under 500k population, extending collection period to 2047.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax Transportation Funding

Track

in committee · Hawaii · Senate Jan 28, 2026

SB 2590: RELATING TO THE GENERAL EXCISE TAX.

Exempts from the state general excise tax any grants received from the federal Restaurant Revitalization Fund by an eligible business pursuant to the American Rescue Plan Act of 2021. Requires the Department of Taxation to notify all taxpayers eligible for refunds of any state general excise tax paid for grants received from the federal Restaurant Revitalization Fund of their eligibility and requires taxpayers to file refund claims no later than six months following notification. Requires any state general excise taxes paid by eligible businesses for Restaurant Revitalization Fund grants to be refunded to the taxpayer. Applies retroactively to 3/11/2021.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts federal restaurant grants from state tax, providing direct tax relief to eligible businesses per American Rescue Plan Act.95% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Hawaii · House Jan 26, 2026

HB 1754: RELATING TO GENERAL EXCISE TAX.

Exempts food and groceries from the general excise tax. Expands the general excise tax exemption implemented in 2024 for certain medical and dental services to include all medical and dental services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts food, groceries, and medical/dental services from excise tax, providing direct tax relief to lower-income households.95% confidence ✓ HealthcareSupports HealthcareExempts all medical/dental services from excise tax, reducing costs and improving access to healthcare services per the bill's expansion of tax exemptions.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

Track

passed · Hawaii · Senate Dec 8, 2025

SB 1043: RELATING TO TAXATION.

SB 1043 reduces the general excise tax rate on nonprescription drugs by 50%. This change directly affects consumers who purchase nonprescription medications, lowering their out-of-pocket costs. The bill's key provision is halving the existing tax rate, effective July 1, 3000. It does not alter other tax rates or create new government programs. The bill passed a committee recommendation with four supportive votes in February 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces excise tax on nonprescription drugs, providing direct tax relief to consumers, aligning with support indicators for tax relief.95% confidence ✓ HealthcareSupports HealthcareReduces excise tax on nonprescription drugs, lowering consumer costs and improving access to essential healthcare services.95% confidence

Sub-Topics Sales Tax

Track