Bill > HB522

This bill establishes a monthly general excise tax holiday for small businesses in Hawaii, specifically on the first Saturday of each month from 12:01 a.m. to 12:00 midnight. Under this legislation, small businesses (defined as for-profit entities domiciled in Hawaii, independently owned and operated, with fewer than 50 employees) will be exempt from collecting general excise taxes during this period, with the requirement that all savings be passed on to the purchaser. The tax holiday does not apply to rebates, layaway sales, rain checks, exchanges, or items purchased online, by phone, or mail order. Businesses will not need special documentation for the holiday but must maintain clear records of sales. The tax holiday will begin applying to taxable years starting after December 31, 2025, providing small businesses with a periodic tax relief mechanism designed to support local economic activity and potentially reduce costs for consumers.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=522&year=2025