Bill > HB1335

This bill introduces two primary tax-related provisions: first, a general excise tax exemption for diapers and second, a surcharge on luxury motor vehicle sales. Under the diaper exemption, the bill provides a tax exclusion for the gross proceeds from manufacturing, producing, packaging, and selling diapers within Hawaii, with specific quality standards defined for disposable diapers, including requirements for absorbency, waterproofing, leg openings, and closures. The luxury motor vehicle surcharge establishes an additional tax of fifty percent on top of existing taxes for vehicles with a manufacturer's suggested retail price above an unspecified amount (the specific dollar threshold is left blank in the bill), with exceptions for trucks over two tons, motorhomes, emergency vehicles, and vehicles adapted for passengers with disabilities. The bill also modifies use tax registration requirements to ensure that vehicle registration cannot be completed without proof of paying both the standard use tax and the new luxury vehicle surcharge. The diaper tax exemption and luxury vehicle surcharge will have different effective dates, with the diaper exemption taking effect on July 1, 2025, and the luxury vehicle surcharge becoming active on January 1, 2026, providing businesses time to adjust to the new tax regulations.

Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1335&year=2025