Budget & Taxes (Sales Tax)

passed both · Hawaii · House Mar 24, 2026

HB 2590: RELATING TO TAXATION.

Imposes the manufacturing general excise tax rate on motion picture, digital media, and film productions and repeals the provision in the definition of "qualified production costs" that applied the term to mean costs incurred that are subject to the highest general excise tax rate. Exempts from the general excise tax certain amounts received by a motion picture project employer from a client company equal to amounts that are disbursed by the motion picture project employer for employee wages, salaries, payroll taxes, insurance premiums, and employment benefits and payments to loan-out companies. Requires persons making payment to a loan-out company and claiming the Motion Picture, Digital Media, and Film Production Income Tax Credit to deduct and withhold an amount exceeding the amount actually due for all payments made to the loan-out company for services performed in the State. Applies to taxable years beginning after 12/31/2026. Effective 7/1/3050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption for film production wages, directly altering tax policy to reduce burden on industry per bill's exemption provision.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Hawaii · Senate Jan 21, 2026

SB 1218: RELATING TO THE CONVEYANCE TAX.

Establishes the Homeless Services Special Fund. Allows counties to apply for matching funds from the Affordable Homeownership Revolving Fund for certain housing projects. Increases the conveyance tax rates for certain properties. Repeals the separate conveyance tax rates for the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax and establishes conveyance tax rates for multifamily residential properties. Establishes new exemptions to the conveyance tax. Allocates collected conveyance taxes to the Affordable Homeownership Revolving Fund, Homeless Services Special Fund and general fund. Amends allocations to the Land Conservation Fund and Rental Housing Revolving Fund.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases conveyance tax rates to fund Homeless Services Special Fund and Affordable Housing programs, directly supporting public service funding under Budget & Taxes.92% confidence ✓ HousingSupports HousingEstablishes Homeless Services Fund and enables county access to Affordable Homeownership Revolving Fund for housing projects, directly funding housing initiatives.95% confidence

Sub-Topics Property Tax Sales Tax State Budget Homelessness Homeownership Property Taxes

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in committee · Hawaii · House Dec 8, 2025

HB 516: RELATING TO HOUSING.

Repeals the requirement imposed on the counties to allow for the construction of at least two accessory dwelling units on all residentially zoned lots. Establishes the accessory dwelling unit housing development program with the Hawaii Community Development Authority to award subsidies to individuals who build accessory dwelling units. Exempts those accessory dwelling units from general excise tax for the first 3 years of rental.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts ADUs from general excise tax for 3 years, providing tax relief for housing developers and renters under the HCDA program.90% confidence ✓ HousingSupports HousingCreates HCDA subsidies and tax exemptions for ADUs, directly increasing affordable housing options through financial incentives.95% confidence

Sub-Topics Sales Tax Community Development Property Development Zoning

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in committee · Hawaii · Senate Jan 22, 2026

SB 2104: RELATING TO THE GENERAL EXCISE TAX.

Implements a phased repeal of the state general excise tax on the sale of groceries and nonprescription drugs in the State. Prohibits counties from establishing county surcharges on the state general excise tax on gross income or gross proceeds from the sale of groceries and nonprescription drugs in the State. Prohibition on county surcharges to be repealed on 12/31/2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesPhased repeal of excise tax on groceries/nonprescription drugs provides direct tax relief for essential purchases, aligning with middle/lower income support indicators.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Hawaii · House Dec 8, 2025

HB 1208: RELATING TO THE CONVEYANCE TAX.

Establishes the Homeless Services Special Fund. Allows counties to apply for matching funds from the Affordable Homeownership Revolving Fund for certain housing projects. Increases the conveyance tax rates for certain properties. Establishes conveyance tax rates for multifamily residential properties. Establishes new exemptions to the conveyance tax. Allocates collected conveyance taxes to the Affordable Homeownership Revolving Fund, Homeless Services Fund, and Dwelling Unit Revolving Fund. Amends allocations to the Land Conservation Fund and Rental Housing Revolving Fund. Effective 7/1/2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates conveyance tax revenue to homeless services and affordable housing funds, directly funding essential public programs through targeted tax increases.95% confidence ✓ HousingSupports HousingEstablishes Homeless Services Fund and Affordable Homeownership Revolving Fund, allocating conveyance taxes to these housing support programs.95% confidence

Sub-Topics Property Tax Sales Tax Affordable Housing Homelessness Property Taxes

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in committee · Hawaii · House Dec 8, 2025

HB 260: RELATING TO TAXATION.

HB 260 would eliminate state taxes on gasoline and diesel fuel used in motor vehicles, directly affecting drivers and vehicle owners by reducing fuel costs. The bill requires fuel distributors to pass any tax savings directly to consumers, ensuring that the removal of state taxes lowers prices at the pump. This policy change focuses on concrete tax removal and mandatory price transparency for consumers, with no additional provisions or exemptions specified.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state fuel taxes, providing direct tax relief to consumers through mandatory price reductions at the pump.95% confidence

Sub-Topics Business Taxes Sales Tax State Budget

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in committee · Hawaii · House Jan 28, 2026

HB 2134: RELATING TO GENERAL EXCISE TAX.

HB 2134 exempts small business tenants from paying the general excise tax on income from leasing commercial property. This directly affects small businesses that rent physical space for operations, such as retail stores or offices. The bill removes the tax obligation on the gross income generated from these real property leases. It requires related adjustments to tax code language to implement the exemption. The bill is currently pending introduction as of January 23, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts small businesses from general excise tax, providing direct tax relief and supporting fiscal responsibility for small operations.95% confidence

Sub-Topics Business Taxes Sales Tax Tags Small Business

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in committee · Hawaii · House Feb 2, 2026

HB 2464: RELATING TO TAXATION.

Establishes a family caregiver tax credit for nonpaid family caregivers. Requires the Department of Taxation to submit annual reports to the legislature. Appropriates moneys to the Executive Office on Aging. The tax credit applies to taxable years beginning after 12/31/2027. Effective 12/31/2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes caregiver tax credit (tax relief) and appropriates funds to aging services, advancing fiscal support for vulnerable populations and public programs.92% confidence ✓ HealthcareSupports HealthcareEstablishes tax credit for family caregivers (supporting unpaid healthcare assistance) and appropriates funds to Executive Office on Aging for healthcare-related services.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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in committee · Hawaii · Senate Feb 2, 2026

SB 3172: RELATING TO TAXATION.

Requires the Department of Taxation to accept, evaluate and make determinations on offers in compromise under certain conditions, including for offers requiring the Governor's approval. Amends the income tax and general excise tax statute of limitation periods for collection or commencement of proceedings to six years, except in cases of false or fraudulent returns, or intent to evade tax. Effective 1/1/2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax collection statute of limitations to 6 years, strengthening revenue collection and fiscal management per tax enforcement provisions.85% confidence

Sub-Topics Income Tax Sales Tax

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passed · Hawaii · Senate Feb 17, 2026

SB 2784: RELATING TO TAXATION.

For taxable years beginning after 12/31/2026, applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies. Appropriates funds to establish a position in the Department of Taxation. Effective 7/1/2050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesApplies tax rate to rental car companies and appropriates funds to Department of Taxation and DHHL, funding essential programs per bill's summary.95% confidence ✓ HousingSupports HousingBill appropriates funds to DHHL to address beneficiary waiting list, directly funding housing development for Native Hawaiian homesteaders.85% confidence

Sub-Topics Sales Tax

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