Bill > HB2391

This bill establishes a general excise tax holiday on school supplies in Hawaii, meaning that for a specific weekend before the school year begins, taxes will not be collected on qualifying items. The bill defines "school supply" broadly to include items like binders, pens, pencils, notebooks, and calculators, as well as clothing and bags priced at $100 or less per item, with specific exclusions for items like watches, jewelry, and suitcases. A key provision requires businesses to pass the savings from this tax holiday directly to consumers by not increasing prices. The holiday applies to businesses holding a general excise tax license and requires them to maintain records of sales, but no special permits are needed. The bill also clarifies that bundled items sold as a unit cannot be separated to qualify for the exemption, and shipping and handling charges are included in the sale price. This initiative aims to provide financial relief to Hawaii's taxpayers, who are described as heavily burdened, by allowing them to retain more money for other necessities, similar to tax holidays implemented in other states. The law is set to take effect on July 1, 3000.