Bill > SB1241

This bill establishes a new general excise tax exemption for medical services in Hawaii, effectively removing taxes on gross proceeds from sales of medical services. The bill defines "medical services" broadly, covering services provided by licensed professionals in multiple healthcare-related chapters, including those for physicians, dentists, nurses, psychologists, chiropractors, optometrists, pharmacists, and other healthcare practitioners. Specifically, the exemption applies to services provided by professionals licensed under 23 different chapters of Hawaii's professional licensing laws, which means most standard medical and healthcare services would be tax-exempt. The tax exemption will take effect upon approval and will apply to taxable years beginning after December 31, 2025, which means healthcare providers and patients could see reduced costs starting in the 2026 tax year by eliminating the general excise tax on medical service sales.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1241&year=2026