Budget & Taxes (Sales Tax)

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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signed · Hawaii · House May 19, 2026

HB 1688: RELATING TO A GENERAL EXCISE TAX EXEMPTION FOR AIRCRAFT MAINTENANCE.

Provides a general excise tax exemption for the sale of material, parts, or tools used for aircraft service and maintenance or for the construction of an aircraft service and maintenance facility. Effective 1/1/2027. (CD1)

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates tax exemption for aircraft maintenance, reducing state general excise tax revenue, which weakens the tax base and budget revenue.90% confidence ✓ TransportationSupports TransportationTax exemption supports aircraft maintenance facilities, a subset of transportation infrastructure, aligning with transportation policy goals.85% confidence

Sub-Topics Sales Tax Tax Incentives

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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in committee · Hawaii · Senate Jan 30, 2026

SB 2904: RELATING TO TRANSPORTATION.

Beginning 1/1/2027, requires each county to implement fare-free access to its public transportation systems. Establishes the Fare-Free Public Transportation Tax and Dividend Special Fund. Increases the Environmental Response, Energy, and Food Security Tax on petroleum products to fund fare-free public transportation.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases petroleum tax to fund public transportation, directly using tax revenue for a public service and establishing a dedicated fund.95% confidence ✓ EnergySupports EnergyBill taxes petroleum products (fossil fuels) to fund fare-free transit, reducing fossil fuel dependence and aligning with energy policy goals.90% confidence ✓ EnvironmentSupports EnvironmentIncreases petroleum tax to fund fare-free transit, reducing vehicle emissions and promoting sustainable transportation per Environmental Response tax linkage.90% confidence ✓ TransportationSupports TransportationMandates fare-free public transit systems and funds via increased petroleum tax, directly advancing public transportation access and infrastructure.95% confidence

Sub-Topics Business Taxes Sales Tax Oil & Gas Public Transit Transportation Funding

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in committee · Hawaii · Senate Dec 8, 2025

SB 1131: RELATING TO TAXATION.

Imposes an excise tax on certain hedge funds failing to dispose of excess single-family residences, escalating over a ten-year period. Imposes a tax on any newly acquired single-family residences by a hedge fund. Makes certain exemptions. Requires the Department of Taxation to establish a certification process to ensure buyers of homes sold by hedge funds are not major investors in residential real estate. Establishes the Housing Down Payment Trust Fund to be administered by the Hawaii Housing Finance and Development Corporation to provide grants to establish new or supplement existing programs that provide down payment assistance to families purchasing homes within the State. Allocates collected tax revenue and penalties paid by hedge funds to the Housing Down Payment Trust Fund. Applies to taxable years beginning after 12/31/2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes excise tax on hedge funds to fund Housing Down Payment Trust Fund, advancing public housing initiatives through targeted taxation.95% confidence ✓ HousingSupports HousingImposes tax on hedge funds holding homes to increase availability and creates Housing Down Payment Trust Fund for affordability, directly advancing housing access.95% confidence

Sub-Topics Procurement Revenue Sales Tax Homeownership Housing Finance Property Development

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in committee · Hawaii · Senate Jan 30, 2026

SB 2594: RELATING TO TAXATION.

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 for a position in the Department of Taxation.

Topics ✓ Budget & TaxesSupports Budget & TaxesApplies general excise tax rate to rental car vehicle purchases and appropriates funds for Taxation Department, strengthening tax collection and administration.90% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Hawaii · House Dec 8, 2025

HB 1335: RELATING TO TAXATION.

Establishes a general excise tax exemption for the gross proceeds or income from the manufacture, production, packaging, and sale of diapers. Establishes a surcharge on the general excise tax and use tax for the sale or use of luxury cars.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts diapers (tax relief for lower income) and adds luxury car surcharge (progressive revenue), aligning with tax relief and fiscal responsibility indicators.95% confidence

Sub-Topics Fees & Licensing Sales Tax Tax Incentives

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