Bill > SB2104

This bill implements a phased repeal of the state's general excise tax, which is a tax on gross income or gross proceeds from sales, on groceries and nonprescription drugs, aiming to reduce the cost of essential items for residents. The tax rate on groceries and nonprescription drugs will gradually decrease from 4.0% until the end of 2026, with further reductions each year until it is completely eliminated starting January 1, 2034. Additionally, counties will be prohibited from imposing their own surcharges on the state's general excise tax for these items, though this prohibition will be repealed on December 31, 2030. The bill defines "groceries" as food or food products intended for home consumption, excluding alcoholic beverages, tobacco, and hot foods prepared for immediate consumption, and "nonprescription drug" as defined by existing state law.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2104&year=2026