SB875

Reduces general excise tax on groceries and nonprescription drugs in Hawaii.

Hawaii SB875 reduces the general excise tax on groceries and nonprescription drugs to alleviate the cost of living for residents. The tax reduction applies to groceries eligible for purchase under the supplemental nutrition assistance program and special supplemental nutrition program for women, infants, and children. The bill also mandates the Department of Business, Economic Development, and Tourism to conduct an economic cost-benefit analysis on the tax reductions and submit a report to the legislature. The tax reductions are effective starting January 1, 2026.