Bill > HB1611

This bill aims to reduce the tax burden on essential goods by gradually lowering the general excise tax (GET) rate on groceries and nonprescription drugs, with a full exemption taking effect on January 1, 2034. The GET is a broad sales tax applied to most transactions in Hawaii. Starting January 1, 2027, the tax rate on these items will decrease annually on a tiered schedule. Additionally, beginning January 1, 2027, counties will be prohibited from imposing their own surcharges on groceries and nonprescription drugs, which are defined as food items for home consumption (excluding alcohol, tobacco, and hot prepared foods) and over-the-counter medications. Furthermore, starting January 1, 2028, there will be a GET exemption on the wholesale sale of groceries and nonprescription drugs, meaning businesses buying these items to resell will not pay the tax on those transactions. The bill also clarifies that a "wholesale transaction" refers to sales for resale between entities like manufacturers, distributors, and retailers. The effective date for this legislation is July 1, 3000.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1611&year=2026