THE SENATE S.B. NO. 1043 THIRTY-THIRD LEGISLATURE, 2025 S.D. 2 STATE OF HAWAII H.D. 1 A BILL FOR AN ACT RELATING TO TAXATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
THE SENATE S.B. NO. 1043
THIRTY-THIRD LEGISLATURE, 2025 S.D. 2
STATE OF HAWAII H.D. 1
THE SENATE
S.B. NO.
1043
THIRTY-THIRD LEGISLATURE, 2025
S.D. 2
STATE OF HAWAII
H.D. 1
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii has one of the highest costs of living in the nation, placing a heavy financial burden on working families. The legislature further finds that the general excise tax on the sale of certain essential products, such as groceries and nonprescription drugs, disproportionately impacts low- and moderate-income families. While completely eliminating these taxes would also eliminate their regressive impact on taxpayers, the legislature recognizes that the State's fiscal needs would not be met with the significant decrease in revenue that would result from full exemptions from the general excise tax. Accordingly, the purpose of this Act is to reduce the general excise tax rate imposed on nonprescription drugs by one half. SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding one new section to be appropriately designated and to read as follows: "§237- Rate for nonprescription drugs. (a) The rate of taxes imposed by this chapter on all of the gross proceeds or gross income received or derived from the sale of nonprescription drugs shall be one half of the rate imposed by section 237-13(9). (b) For the purposes of this section, "nonprescription drug" has the same meaning as in section 328-1." SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 3000.
SECTION 1. The legislature finds that Hawaii has one of the highest costs of living in the nation, placing a heavy financial burden on working families. The legislature further finds that the general excise tax on the sale of certain essential products, such as groceries and nonprescription drugs, disproportionately impacts low- and moderate-income families. While completely eliminating these taxes would also eliminate their regressive impact on taxpayers, the legislature recognizes that the State's fiscal needs would not be met with the significant decrease in revenue that would result from full exemptions from the general excise tax.
Accordingly, the purpose of this Act is to reduce the general excise tax rate imposed on nonprescription drugs by one half.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding one new section to be appropriately designated and to read as follows:
"§237- Rate for nonprescription drugs. (a) The rate of taxes imposed by this chapter on all of the gross proceeds or gross income received or derived from the sale of nonprescription drugs shall be one half of the rate imposed by section 237-13(9).
(b) For the purposes of this section, "nonprescription drug" has the same meaning as in section 328-1."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title: General Excise Tax; Nonprescription Drugs; Reduced Rate Description: Reduces the general excise tax rate imposed on nonprescription drugs by one half. Effective 7/1/3000. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
General Excise Tax; Nonprescription Drugs; Reduced Rate
Description:
Reduces the general excise tax rate imposed on nonprescription drugs by one half. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.