Budget & Taxes (Sales Tax)

signed · Hawaii · Senate May 21, 2026

SB 3125: RELATING TO INCOME TAX.

PART I: Repeals certain future adjustments to income tax brackets. Changes income tax rates. Amends the Renewable Energy Technologies Income Tax Credit by adding an aggregate cap amount, setting income thresholds, adding a certification requirement, and adding a sunset date. Adds sunset dates to the Capital Goods Excise Tax Credit and Renewable Fuels Production Tax Credit. PART II: Beginning 1/1/2028, repeals the Technology Infrastructure Renovation Tax Credit. Beginning 1/1/2029, repeals the High Technology Business Investment Tax Credit and Tax Credit for Research Activities. (CD2)

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals future tax bracket adjustments and expands child care tax credit, providing relief to middle-income families.85% confidence ✓ EnergySupports EnergyBill includes Renewable Energy Technologies Income Tax Credit and Renewable Fuels Production Tax Credit, directly supporting energy production and renewable energy development.85% confidence

Sub-Topics Income Tax Sales Tax Tax Credits Renewable Energy

in committee · Hawaii · Senate Jan 30, 2026

SB 2920: RELATING TO TAXATION.

SB 2920 amends and repeals specific exemptions within Hawaii's general excise tax and use tax laws. This change directly affects businesses and individuals currently benefiting from those repealed or modified exemptions. The bill alters which goods or services qualify for tax relief under these laws. It does not create new tax rates or broaden existing exemptions, but rather modifies the scope of existing exemptions. The bill is currently in early committee review following its introduction on January 23, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals tax exemptions, increasing taxable base without new rates - strengthens revenue collection under existing tax structure95% confidence

Sub-Topics Sales Tax

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in committee · Hawaii · House Dec 8, 2025

HB 281: RELATING TO GENERAL EXCISE TAX.

Exempts food and groceries from the general excise tax. Expands a 2024 session law exempting certain medical and dental services to include all medical and dental services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential items (food, groceries, medical/dental services) from excise tax, providing direct tax relief for lower-income households and aligning with fiscal responsibility indicators.95% confidence ✓ HealthcareSupports HealthcareExempts all medical/dental services from excise tax, reducing patient costs and improving access to healthcare services.95% confidence

Sub-Topics Sales Tax

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in committee · Hawaii · House Jan 26, 2026

HB 1585: RELATING TO THE GENERAL EXCISE TAX.

HB 1585 would exempt eligible grocery items from the General Excise Tax (a tax on business activity) for taxable years beginning after December 31, 2025. This change would directly affect grocery businesses selling qualifying food items, removing their obligation to pay this tax on those sales. The bill’s key mechanism is a permanent tax exemption for specific grocery purchases, not a temporary relief measure. It applies only to groceries meeting defined eligibility criteria, not all retail goods. The bill is currently in committee referral after its initial introduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts grocery items from GET, providing tax relief for essential purchases, aligning with support for lower-income households via SNAP/WIC eligibility.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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passed · Hawaii · Senate Feb 17, 2026

SB 3278: RELATING TO TAX EXPENDITURE EVALUATION.

Requires tax expenditure disclosure to, and evaluation by, the Department of Business, Economic Development, and Tourism for certain income tax credits and general excise and use tax exemptions. Requires the Department of Taxation to share certain information with DBEDT upon request. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires tax expenditure evaluation by DBEDT, promoting fiscal transparency and accountability in tax credits/exemptions, aligning with fiscal responsibility indicators.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Hawaii · Senate Dec 8, 2025

SB 1534: 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 (lower-income relief) and adds luxury car surcharge (progressive tax), aligning with tax equity indicators for Budget & Taxes.90% confidence

Sub-Topics Fees & Licensing Sales Tax Tax Incentives

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in committee · Hawaii · House Dec 8, 2025

HB 489: RELATING TO VACANT HOMES.

Establishes a Vacant Homes Special Fund under the Hawaii Housing Finance and Development Corporation for rental assistance programs. Establishes a general excise tax surcharge on an owner that allows a residential real property to remain vacant for 180 days or more a year. Requires persons who own residential real property, but do not live there, to obtain a general excise tax license. Requires the counties to disclose to the Department of Taxation a list of properties classified as not being occupied by an owner of that property. Requires the Department of Business, Economic Development, and Tourism to calculate average annual rental value for the basis for the surcharge amount.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes general excise tax surcharge on vacant property owners to fund rental assistance programs, creating new tax revenue for public housing services.95% confidence ✓ HousingSupports HousingEstablishes Vacant Homes Special Fund for rental assistance, taxes vacant properties to fund housing programs, directly advancing affordable housing access.90% confidence

Sub-Topics Fees & Licensing Sales Tax Housing Finance Property Development Renters

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passed · Hawaii · Senate Dec 8, 2025

SB 1033: RELATING TO TAXATION.

Establishes an excise tax on certain taxpayers who own excess single-family residences for failure to sell those residences. Establishes and allocates excise tax revenues to the Housing Downpayment Trust Fund. Requires annual reports to the Legislature. Applies to taxable years beginning after 12/31/2026. Effective 7/1/2050. (SD2)

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates excise tax on idle homes, allocates revenues to Housing Downpayment Trust Fund - directly funds housing program via new tax revenue.95% confidence ✓ HousingSupports HousingFunds Housing Downpayment Trust Fund via excise tax on non-selling excess properties, directly advancing affordable housing access.95% confidence

Sub-Topics Sales Tax

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passed · Hawaii · Senate Dec 8, 2025

SB 1278: 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. Effective 7/1/3000. Applies retroactively to 3/11/2021. (HD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts federal restaurant grants from state tax, providing relief to businesses and refunding overpaid taxes, aligning with tax relief support for small businesses.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Hawaii · House Dec 8, 2025

HB 263: RELATING TO VEHICLE WEIGHT TAXES.

HB 263 would exempt full-time college students from vehicle weight taxes. The bill adds a specific exemption to the tax code, eliminating this cost for students enrolled full-time at accredited colleges. This change directly affects eligible students who own vehicles subject to the tax. The exemption would apply to all qualifying vehicles under existing tax regulations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts full-time students from vehicle weight tax, providing tax relief for lower-income group per support indicators.95% confidence

Sub-Topics Sales Tax

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