HB1215 • 2026

RELATING TO GENERAL EXCISE TAX EXEMPTION.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: PIERICK
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The candidate explanation included claims about the bill removing a tax which was not specified in the official source material. The official summary only mentions exempting amounts received by contractors for work done in specific population range counties.

Tax Exemption for Contractors in Certain Population Range Counties

This bill exempts contractors from the general excise tax when they receive payment for work done in counties with populations between 125,000 and 185,000.

What This Bill Does

Adds a new exemption to the list of items not taxed under the general excise tax law.
This new exemption applies only to amounts earned by licensed contractors for work done in specific counties with populations between 125,000 and 185,000 people.

Who It Names or Affects

Contractors who are licensed under chapter 444 of the Hawaii Revised Statutes.
Counties in Hawaii with populations between 125,000 and 185,000 residents.

Terms To Know

General Excise Tax: A tax on most goods and services sold or used in the state of Hawaii.
Licensed Contractors: Businesses that are officially allowed to do construction work after passing certain tests and getting approval from the government.

Limits and Unknowns

The bill does not specify which counties exactly will be affected, only their population range.
It is unclear how many contractors this exemption will benefit or what the financial impact might be.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-27 H
Referred to FIN, referral sheet 4
2025-01-23 H
Introduced and Pass First Reading.
2025-01-22 H
Pending introduction.

Official Summary Text

RELATING TO GENERAL EXCISE TAX EXEMPTION.
General Excise Tax Exemption; Contractors
Exempts from the general excise tax, amounts received by a contractor for contracting work performed in a county having a population of more than one hundred twenty-five thousand but less than one hundred eighty-five thousand.

Current Bill Text

Read the full stored bill text

HB1215

HOUSE OF REPRESENTATIVES

H.B. NO.

1215

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to general excise tax exemption
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1
.
�
Section
237-24.75, Hawaii Revised Statutes, is amended to read as follows:

����
"
�237-24.75
�
Additional
exemptions.
�
In addition to the
amounts exempt under section 237-24, this chapter shall not apply to:

����
(1)
�
Amounts received
as a beverage container deposit collected under chapter 342G, part VIII;

����
(2)
�
Amounts received
by the operator of the Hawaii convention center for reimbursement of costs or
advances made pursuant to a contract with the Hawaii tourism authority under
section 201B‑7; [
and
]

����
(3)
�
Amounts received by
a professional employer organization that is registered with the department of
labor and industrial relations pursuant to chapter 373L, from a client company
equal to amounts that are disbursed by the professional employer organization
for employee wages, salaries, payroll taxes, insurance premiums, and benefits,
including retirement, vacation, sick leave, health benefits, and similar
employment benefits with respect to covered employees at a client company;
provided that this exemption shall not apply to amounts received by a
professional employer organization after:

���������
(A)
�
Notification from
the department of labor and industrial relations that the professional employer
organization has not fulfilled or maintained the registration requirements
under this chapter; or

���������
(B)
�
A determination by
the department that the professional employer organization has failed to pay
any tax withholding for covered employees or any federal or state taxes for
which the professional employer organization is responsible.

���������
As used in this paragraph, "professional
employer organization", "client company", and "covered
employee" shall have the meanings provided in section 373L-1[
.
]
;
and

����
(4)
�
Amounts
received by a contractor licensed under chapter 444 for services performed as a
general engineering contractor, general building contractor, or specialty
contractor in a county having a population of more than one hundred twenty-five
thousand but less than one hundred eighty-five thousand.
"

����
SECTION
2.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 3.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2025.

INTRODUCED BY:

_____________________________

Report Title:

General
Excise Tax Exemption; Contractors

Description:

Exempts
from the general excise tax, amounts received by a contractor for contracting
work performed in a county having a population of more than one hundred
twenty-five thousand but less than one hundred eighty-five thousand.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.