Bill > HB522

This bill establishes a monthly sales tax holiday for small businesses in Hawaii, where on the first Saturday of each month, between 12:01 a.m. and 12:00 midnight, qualifying small businesses will be exempt from paying general excise taxes on their sales. A "small business" is defined as a for-profit entity domiciled in Hawaii, independently owned and operated, with fewer than fifty employees in the state. The tax exemption requires that all savings be passed on to the purchaser and does not apply to rebates, layaway sales, exchanges, or items purchased via internet, telephone, or mail-order. Businesses do not need special documentation during the holiday but must maintain clear records of sales, including the type of goods or services, date of sale, and price. The bill will take effect for taxable years beginning after December 31, 2025, providing small businesses with a periodic tax relief mechanism designed to support local economic activity and reduce the tax burden on smaller enterprises.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=522&year=2026