Bill > HB959

This bill aims to address tax equity, cost of living challenges, and recovery efforts in Hawaii by implementing several significant tax changes and establishing a special fund for Maui wildfire recovery. Specifically, the bill exempts the sale of groceries and nonprescription drugs from the general excise tax while incrementally increasing the general excise tax rate over four years from 4% to 6%. It removes the state income tax on unemployment compensation benefits and doubles the standard deduction for individuals earning less than $100,000 and joint returns earning less than $200,000. The bill also removes tax liability for the first $100,000 of individual income earned and increases the low-income household renters' income tax credit. Additionally, the legislation establishes a Maui Recovery Special Fund to support recovery programs and assistance for those impacted by the 2023 Maui wildfires, with funds to be collected from legislative appropriations, public and private contributions, and interest earnings. The bill is designed to provide tax relief for lower-income residents, support economic recovery, and address the significant financial challenges faced by Hawaii residents, particularly in the aftermath of the devastating Maui wildfires.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=959&year=2025