Bill > HB1085

This bill increases the tax rate for cigarettes and little cigars from 16.00 cents to 21.00 cents per cigarette or little cigar starting January 1, 2026, and modifies the disposition of tobacco tax revenues. Beginning July 1, 2025, the bill establishes a new framework for distributing tax revenues, allocating specific percentages or maximum dollar amounts to four special funds: the Hawaii Cancer Research Special Fund, the Trauma System Special Fund, the Community Health Centers Special Fund, and the Emergency Medical Services Special Fund. Each fund will receive up to 25% of the revenues or a specified maximum amount, whichever is less. The bill also removes several historical tax rate provisions that are now considered obsolete, simplifying the tax code. Additionally, the bill expands the tobacco product tax to include all tobacco products at various percentage rates based on wholesale prices, covering items such as electronic smoking devices, e-liquids, and large cigars. The legislation requires the department to provide an annual accounting of these revenue dispositions to the legislature, ensuring transparency in how the collected taxes are distributed. The bill is set to take effect on July 1, 3000, which appears to be a placeholder date and likely means July 1 of the implementation year.

Budget and Finance, Education, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1085&year=2026