HB281

Hawaii HB281 proposes to exempt food and medical services from the general excise tax to reduce living costs.

Hawaii HB281 aims to lower the cost of living by exempting food and medical services from the general excise tax. The bill defines "groceries" and "prepared food" and exempts meals served in various settings, including senior centers and federally subsidized housing. It also exempts medical services, including those covered by Medicare, Medicaid, and TRICARE. The bill estimates a $222 million tax cut for residents and healthcare professionals, citing a study by the Grassroot Institute of Hawaii. The changes would take effect on January 1, 2027.