Bill > SB1444

This bill amends Hawaii's General Excise Tax law to add a new tax exemption for specific licensed residential care facilities. Specifically, the bill creates an exemption for amounts received by adult residential care homes (licensed under sections 321-15.6 or 321-15.62) when they provide residential care services through a contract with the Department of Health. This means that these specialized care facilities will not have to pay general excise taxes on the income they receive from these specific contractual services. The exemption is part of Hawaii's broader list of tax-exempt transactions, which includes things like insurance payouts, gifts, salaries, and damages. The bill will take effect on January 1, 2026, giving affected facilities and the state time to prepare for the change. The purpose appears to be to reduce financial burden on care facilities that provide essential mental health residential services, potentially making such services more financially sustainable.

Budget and Finance, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1444&year=2026