Bill > SB1124

This bill establishes a new retail delivery safety fee of 50 cents on each transaction involving a retail delivery of non-food items in Hawaii, designed to address safety concerns related to increased delivery truck traffic in residential neighborhoods. The fee applies to deliveries of tangible personal property and clothing, but specifically exempts deliveries of food, prepared food, and medical devices. Retailers can pass the fee directly to purchasers and must clearly itemize it on receipts as a separate charge. The bill requires that most of the collected fees be deposited into the Safe Routes to School Program Special Fund to support local transportation safety improvements, with the Director of Taxation allowed to retain a portion of the collected fees to cover administrative costs. Retailers will report and remit the fee using the same filing cycle as existing sales taxes, and the fee will be nonrefundable except in cases where a delivery is completely canceled. The legislation is set to take effect on July 1, 2050, with the underlying provisions applying to taxable years beginning after December 21, 2025, giving businesses ample time to prepare for implementation.

Business and Industry, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1124&year=2026