Bill > HB1125

This bill amends Hawaii's General Excise Tax law to add a new tax exemption for adult residential care homes that are licensed under specific sections of Hawaii law and provide residential care services through a contract with the Department of Health. Specifically, the bill adds a new provision (numbered section 18) to the list of tax-exempt transactions in section 237-24 of Hawaii Revised Statutes. The exemption applies to gross income received by licensed adult residential care homes and expanded adult residential care homes when they provide residential care services under a contract with the state's Department of Health. This change is designed to support licensed care facilities that work with the state to provide mental health residential services by removing the general excise tax burden on these specific contractual services. The bill will take effect on January 1, 2026, giving affected facilities and the state time to prepare for the new tax exemption.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1125&year=2026