Hawaii 2024 Regular Session

Hawaii Senate Bill SB241

Introduced
1/19/23  
Refer
1/23/23  
Introduced
1/19/23  

Caption

Relating To General Excise Tax Exemptions.

Impact

If enacted, this bill would effectively change the financial landscape for many residents in Hawaii by removing tax liabilities on basic necessities. For instance, it is estimated that an average two-person household would save over $400 per year if food sales were exempt from the tax. This legislation could also improve access to healthcare services, a critical concern given the high cost of living and the associated healthcare expenses. Furthermore, the exemption of feminine hygiene products recognizes the essential nature of these items for women's health, supporting both economic and social equity.

Summary

SB241 aims to amend the general excise tax structure in Hawaii by introducing exemptions for essential goods and services, notably food items, medical services, and feminine hygiene products. The bill recognizes the significant financial burden that the general excise tax imposes on residents, particularly those from low to middle-income households. Given Hawaii's status as the state with the highest cost of living in the nation, this legislation is presented as a necessary measure to alleviate some of the financial pressures faced by families. The exemptions would allow households to save a considerable amount annually on essential expenditures like food and healthcare.

Contention

Despite its potential benefits, SB241 may face contention from various stakeholders, particularly those who may argue against the scalability of such tax exemptions. Some legislators may express concerns regarding how this could impact state revenue and the broader implications for tax policy. Additionally, there may be debates about the definitions of 'food items' and 'medical services,' as well as discussions on whether any categories of products or services inadvertently benefit from these exemptions, essential to ensure the bill effectively targets low-income families without broad unintended consequences.

Companion Bills

HI SB241

Carry Over Relating To General Excise Tax Exemptions.

Previously Filed As

HI SB194

Relating To General Excise Tax Exemptions.

HI SB849

Relating To General Excise Tax Exemptions.

HI SB241

Relating To General Excise Tax Exemptions.

HI HB638

Relating To General Excise Tax Exemptions.

HI HB1919

Relating To General Excise Tax Exemptions.

HI HB623

Relating To General Excise Tax Exemptions.

HI HB623

Relating To General Excise Tax Exemptions.

HI HB687

Relating To General Excise Tax Exemption For Food.

HI HB687

Relating To General Excise Tax Exemption For Food.

HI HB1699

Relating To General Excise Tax.

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