Bill > HB2521

This bill proposes to exempt groceries, health care services, and utility services from the general excise tax, which is a tax on the gross income or proceeds from business activities. Groceries are defined as food or food ingredients sold for home consumption, excluding items like alcoholic beverages, tobacco, and prepared foods, with the Department of Taxation having the authority to further define what qualifies. Health care services are specified as those provided by licensed professionals under various chapters of the Hawaii Revised Statutes. Utility services are defined to include electricity, water, sewer, natural gas, cable, and telecommunications. This exemption is intended to reduce the tax burden on essential goods and services for consumers and will take effect on July 1, 2027.