Bill > HB281

This bill proposes to exempt food and groceries from Hawaii's General Excise Tax (GET) and expand medical and dental service tax exemptions to cover all healthcare services. The bill aims to address Hawaii's high cost of living by providing tax relief for essential goods and services. Specifically, the legislation defines "groceries" as food products for home consumption and "food" as substances consumed for nutritional value, with specific exclusions for prepared foods, alcoholic beverages, and dietary supplements. The bill expands on a previous 2024 law that only exempted Medicare, Medicaid, and TRICARE medical services by now covering all medical and dental services provided by licensed healthcare practitioners. The legislature argues that these tax exemptions will save Hawaii families significant money, with estimates suggesting a family of four could save over $687 annually on food purchases and healthcare providers could receive a $222 million tax cut. The bill is made possible by the state's current budget surplus and is designed to make living in Hawaii more affordable by reducing the tax burden on essential goods and services. The tax exemptions will take effect on January 1, 2027, giving state agencies time to prepare for the changes.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=281&year=2026