Bill > SB875

This bill aims to reduce the general excise tax (GET) rate by half a percent on two specific categories of goods: groceries eligible for purchase under the Supplemental Nutrition Assistance Program (SNAP) and Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and nonprescription drugs. The legislation is motivated by Hawaii's high cost of living and food insecurity, with findings that 48% of Hawaii families with children experience food insecurity and that taxing groceries disproportionately impacts working families. The bill defines "groceries" as food products intended for home consumption and "nonprescription drugs" as chemical, drug, or medical products that can be legally sold without a practitioner's order. Beginning January 1, 2026, the tax reduction will apply regardless of the purchaser's program eligibility. Additionally, the bill requires the Department of Business, Economic Development, and Tourism (DBEDT) to conduct an economic cost-benefit analysis of these tax reductions by December 1, 2026, and submit a report to the legislature with findings and recommendations before the 2027 legislative session. The act is set to take effect on July 1, 2025.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=875&year=2026