Bill > HB1335

This bill introduces two main tax-related provisions: a general excise tax exemption for diaper manufacturing and sales, and a surcharge on luxury motor vehicle sales and use. For diapers, the bill creates a tax exemption for all gross proceeds from manufacturing, producing, packaging, and selling diapers within Hawaii, with specific quality requirements for disposable diapers, including standards for absorbency, waterproofing, and design features. For luxury motor vehicles, the bill establishes a 50% surcharge on top of existing general excise and use taxes for vehicles with a manufacturer's suggested retail price at or above an unspecified dollar amount, with exemptions for trucks over two tons, motorhomes, emergency vehicles, and vehicles modified for passengers with disabilities. The luxury vehicle surcharge will apply to both new and used vehicles, with specific provisions for existing contracts and fiscal year taxpayers. The bill also amends vehicle registration requirements to include proof of payment for any applicable surcharges. The diaper tax exemption and vehicle surcharge provisions will take effect on July 1, 2025, and January 1, 2026, respectively, aimed at providing tax relief for essential baby products while generating additional revenue from high-end vehicle sales.

Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1335&year=2026