Bill > HB959

This bill aims to address tax equity and provide economic relief for Hawaii residents through several key provisions. It exempts the sale of groceries and nonprescription drugs from the general excise tax while incrementally increasing the general excise tax rate from 4% to 6% over four years, with additional revenues being deposited into the general fund. The bill removes 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. It increases the minimum income threshold for the low-income household renters' income tax credit and removes tax liability for the first $100,000 of individual income earned. Additionally, the bill establishes the Maui Recovery Special Fund to support recovery efforts related to the 2023 Maui wildfires, with funds to be used for recovery programs, capital improvement projects, and assistance to those impacted by the wildfires. The bill is designed to provide tax relief for lower-income residents, support those affected by the Maui wildfires, and generate additional revenue for the state through a gradual increase in the general excise tax rate.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=959&year=2026