Bill > HB1339

This bill aims to exempt food and groceries from Hawaii's General Excise Tax (GET) and expand the existing medical service tax exemption to cover all medical and dental services. The legislation recognizes Hawaii's high cost of living, noting that grocery prices are 50% higher than the national average and that most other states already exempt groceries from sales tax. The bill provides detailed definitions for "groceries" and "food", excluding items like prepared meals, alcoholic beverages, and soft drinks from the exemption. For medical services, the bill broadens the previous tax exemption that only covered Medicare, Medicaid, and TRICARE services to now include all healthcare-related services performed by medical professionals, including physicians, dentists, nurses, and pharmacists. The bill's purpose is to lower living costs for Hawaii families by reducing taxes on essential goods and services, and it is supported by the state's current budget surplus. The tax exemptions would take effect on January 1, 2027, giving the state time to prepare for the implementation of these changes.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1339&year=2026