Hawaii Senate Bill SB361

Hawaii 2022 Regular Session

• Introduced: 1/22/21
• Refer: 1/25/21
• Report Pass: 2/10/21
• Refer: 2/10/21
• Report Pass: 3/5/21
• Engrossed: 3/11/21
• Refer: 3/12/21

Caption

Relating To General Excise Tax.

Impact

The implementation of SB361 would significantly impact tax legislations in Hawaii by providing an essential exemption for food items that support low-income families. Supporters argue that this exemption aligns with the state’s goal to enhance food security and accessibility for vulnerable populations. By removing the general excise tax from eligible grocery items, the bill seeks to ease the financial strain on families reliant on SNAP benefits and promote public health through better access to nutritious food.

Summary

SB361 aims to establish a general excise tax exemption for the sale of groceries that are eligible under the federal Supplemental Nutrition Assistance Program (SNAP). The bill defines 'groceries' as any food or food product for home consumption and explicitly excludes items such as prepared food, dietary supplements, and alcoholic beverages. This exemption is applicable regardless of the purchasing means and eligibility of the purchasing individual, thus intending to alleviate tax burdens for all consumers purchasing eligible groceries in Hawaii. The effective date for this change is set for July 1, 2050.

Sentiment

The sentiment around SB361 appears to be largely supportive among lawmakers and advocacy groups focused on improving food assistance programs. The general consensus is that this bill will enhance the state’s commitment to public welfare and social equity. However, there may also be concerns regarding the long-term financial implications of the tax exemption on state revenues and whether the state has alternative means to compensate for the potential tax revenue loss brought about by this measure.

Contention

Notable points of contention may arise from the concern that while the bill promotes food security, it could also lead to debates about fairness in taxation. Critics might point to the challenge of defining what constitutes 'groceries' and the administrative burden on the Department of Taxation to manage and enforce these exemptions. Additionally, there might be opposing views regarding the priorities in budget allocations and whether enhancing food assistance should take precedence over other critical public services or funding needs.