Bill > HB933

This bill aims to reduce the general excise tax (GET) rate by one-half 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, starting January 1, 2026. The legislation is motivated by Hawaii's high cost of living and the disproportionate impact of taxes on working families, with findings from studies showing that food insecurity affects nearly half of Hawaii families with children and that even small tax increases can exacerbate this issue. The bill comprehensively defines "groceries" as food products for home consumption and "nonprescription drugs" as packaged chemical, drug, or medicine that can be sold without a practitioner's order. Additionally, the Department of Business, Economic Development, and Tourism (DBEDT) is required 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 bill reflects a legislative intent to provide economic relief to residents by reducing the tax burden on essential food and medical items.

Business and Industry, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=933&year=2026