Bill > HB572

This bill proposes to exempt food and groceries from the general excise tax in Hawaii, aiming to reduce the state's high cost of living. 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 on heated foods or meals served with utensils. Additionally, the bill modifies existing tax code to clarify exemptions for healthcare-related services, streamlining language about medical and dental practitioners. The legislature justifies the bill by 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 tax. The bill would potentially save a family of four over $687 annually on food expenses and is supported by the state's current budget surplus. The proposed changes aim to provide economic relief to Hawaii residents by reducing the tax burden on essential goods and services.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=572&year=2026