Bill > HB1754

This bill proposes to exempt food and groceries from Hawaii's general excise tax, which is a tax levied on nearly all economic activity and passed on to consumers. It also expands an existing exemption for certain medical and dental services, implemented in 2024, to cover all medical and dental services, regardless of whether they are covered by programs like Medicare (a federal health insurance program for people aged 65 and older, younger people with disabilities, and people with End-Stage Renal Disease), Medicaid (a joint federal and state program that helps with medical costs for some people with limited income and resources), or TRICARE (the health care program for uniformed service members, retirees, and their families). The bill defines "groceries" as food or food products for home consumption, and "food" broadly as ingestible substances for taste or nutrition, excluding alcoholic beverages, tobacco, prepared food, soft drinks, and dietary supplements, with specific exceptions for certain vulnerable populations and situations. "Prepared food" is defined as food sold heated, with eating utensils provided, or as a combination of ingredients mixed by the seller, with some exceptions for simple preparation like cutting or repackaging. This legislation aims to reduce the cost of living for Hawaii residents by making essential items like food and healthcare more affordable.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1754&year=2026