Bill > SB1534

This bill introduces two key tax-related provisions: First, it establishes a general excise tax exemption for all gross proceeds from the manufacture, production, packaging, and sale of diapers within Hawaii, with specific definitional requirements for what qualifies as a diaper, including stipulations about material composition, disposability, and meeting commercial quality standards for absorbency, waterproofing, and design features. Second, the bill creates a 50% surcharge on the general excise tax and use tax for luxury motor vehicles, defined as vehicles with a manufacturer's suggested retail price at a certain unspecified dollar amount, with explicit exclusions for trucks over two tons, motorhomes, emergency vehicles, and vehicles adapted for passengers with disabilities. The luxury vehicle surcharge will apply to both sales and use taxes, with specific provisions for how it will be implemented, including requirements for tax form revisions and special filing procedures for businesses with fiscal years spanning the implementation date. The bill is set to take effect on July 1, 2025, with the luxury vehicle surcharge specifically beginning on January 1, 2026, and it requires that vehicle registration will now include proof of payment for both the base tax and the new surcharge.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1534&year=2026