Bill > HB572

This bill aims to address Hawaii's high cost of living by exempting food and groceries from the general excise tax (GET) and expanding existing healthcare-related tax exemptions. The legislation defines "groceries" as food products for home consumption and "food" as substances intended for human consumption, with specific exclusions for prepared foods, alcoholic beverages, and dietary supplements. The bill provides detailed definitions and exceptions, such as maintaining taxation for heated foods or meals served with utensils. For medical services, the bill modifies existing tax exemptions related to Medicare, Medicaid, and TRICARE programs, removing specific program definitions while maintaining broad exemptions for healthcare-related goods and services. The legislature's rationale is rooted in economic relief, noting that Hawaii has the highest cost of living in the nation, with grocery prices 50% higher than the national average, and that 39 states already exempt groceries from sales taxes. The bill is supported by the state's current budget surplus and aims to reduce financial burdens on Hawaii families by lowering costs for essential goods and healthcare services. The legislation is set to take effect on July 1, 3000, though this appears to be a typographical error and likely means July 1, 2030.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=572&year=2025