Hawaii House Bill HB180

Hawaii 2025 Regular Session

• Introduced: 1/16/25
• Refer: 1/21/25

Caption

Relating To General Excise Tax Exemptions.

Impact

If enacted, HB180 would impact state laws related to excise tax collection, specifically focusing on the sale of food products deemed suitable for home consumption. By exempting qualified grocery items from general excise taxes, the bill seeks to alleviate some financial burdens for consumers relying on government assistance programs for their food security. The state's taxation authority would be responsible for defining groceries and ensuring compliance with federal program standards, reflecting a cooperative approach to state and federal nutritional assistance efforts.

Summary

House Bill 180 (HB180) aims to amend the Hawaii Revised Statutes to provide a general excise tax exemption on the sale of groceries that are eligible under the supplemental nutrition assistance program (SNAP) and the special supplemental nutrition program for women, infants, and children (WIC). This exemption would apply regardless of the means of purchase and the purchaser's eligibility, which is a significant move to support low-income families and individuals in managing their food expenses and enhancing access to nutritious food options. The bill specifically aims to simplify the taxation process for groceries by ensuring that qualifying food items are exempt from taxation.

Contention

While the bill has the potential to benefit many low-income residents, it may face scrutiny from those concerned about the financial implications for the state's revenue from excise taxes. Detractors might argue that tax exemptions could lead to a reduced funding pool for public services that support the very communities HB180 aims to help. The balance between providing immediate financial relief to vulnerable populations and maintaining necessary state funding will likely be a key point of debate among legislators and stakeholders involved in the legislative process surrounding this bill.