Bill > SB1043

This bill aims to reduce the financial burden on low- and moderate-income families in Hawaii by cutting the general excise tax (GET) rate on nonprescription drugs in half. The legislature acknowledges Hawaii's high cost of living and recognizes that taxes on essential products like nonprescription drugs disproportionately affect families with lower incomes. While a complete tax exemption would have too significant an impact on state revenue, this bill proposes to reduce the tax rate by 50%. Specifically, the bill amends Chapter 237 of the Hawaii Revised Statutes to establish a new tax rate for nonprescription drugs that is one-half of the current rate specified in section 237-13(9). The bill uses the definition of "nonprescription drug" from section 328-1 of Hawaii's statutes, ensuring clarity about which products are covered. The new tax rate will take effect on July 1, 3000 (which appears to be a placeholder date), providing a modest tax relief for consumers purchasing over-the-counter medications.

Budget and Finance, Business and Industry, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1043&year=2026