Bill > SB194

This bill aims to alleviate the financial burden of Hawaii's general excise tax (GET) by creating tax exemptions for three key categories: food items, medical services, and feminine hygiene products. For food items, the bill provides a comprehensive exemption that covers most groceries for home consumption, with specific provisions for meals served to seniors, disabled individuals, domestic violence shelter residents, and households without permanent addresses. The medical services exemption applies to services provided by professionals licensed in various medical and healthcare disciplines, effectively removing the tax from most medical and healthcare treatments. The feminine hygiene products exemption covers a wide range of products including sanitary napkins, tampons, menstrual cups, and related hygiene items. The bill recognizes Hawaii's high cost of living and the regressive nature of the general excise tax, which disproportionately impacts low-income and middle-class families. By eliminating taxes on these essential items, the legislature expects to provide financial relief, with an estimated savings of over $400 annually for an average two-person household. The tax exemptions will take effect on July 1, 2025, and the Department of Taxation is authorized to further define the scope of these exemptions through rules and consultations with federal agencies.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=194&year=2026