HB1458 • 2026

RELATING TO TAXATION OF ADVERTISING REVENUE BY MAJOR SOCIAL MEDIA PLATFORMS.

Budget Taxes

Active

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

Sponsor: HUSSEY
Last action: 2026-02-12
Official status: Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with Representative(s) Garcia voting aye with reservations; Representative(s) Pierick voting no (1) and none excused (0).
Effective date: Not listed

Plain English Breakdown

The bill does not provide specific details about the amount of tax to be collected or the exact impact on social media companies, leaving these aspects uncertain.

Taxing Social Media Ads in Hawaii

This bill requires major social media companies to pay state taxes on advertising revenue from content created within Hawaii or aimed at audiences in Hawaii, and uses the money for broadband expansion and local journalism.

What This Bill Does

Establishes a new fund called the Broadband and Digital Equity Special Fund to collect tax money from big social media companies.
Requires the Department of Taxation to charge state taxes on advertising revenue earned by major social media platforms if it comes from content made in Hawaii or aimed at people living there.

Who It Names or Affects

Major social media companies with over one million users in the U.S. who earn money from advertising.
Hawaii residents who see ads on these platforms.

Terms To Know

Major social media platform: An online service with over one million users in the U.S., earning most of its money from ads, and interacting with people in Hawaii.
Broadband and Digital Equity Special Fund: A new fund created to collect taxes from social media companies for use in expanding internet access and supporting local journalism.

Limits and Unknowns

The bill does not specify how much tax will be collected or what the exact impact on social media companies will be.
It is unclear which specific social media platforms will be affected by this new tax rule.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment establishes a special fund to collect taxes from major social media platforms that earn advertising revenue from Hawaii-based content or audiences, with the goal of expanding broadband access and supporting local journalism.

Creates a new Broadband and Digital Equity Special Fund within the state treasury to receive tax revenues.
Requires major social media platforms earning advertising revenue from Hawaii-based content or audiences to pay state corporate income tax on that revenue.
Appropriates funds for broadband expansion and local journalism initiatives.

The amendment specifies a future effective date of July 1, 3000, which seems incorrect and likely needs correction in the final bill text.

Bill History

2026-02-12 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with Representative(s) Garcia voting aye with reservations; Representative(s) Pierick voting no (1) and none excused (0).
2026-02-12 H
Reported from ECD (Stand. Com. Rep. No. 253-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
2026-02-11 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2026-02-06 H
Bill scheduled to be heard by ECD on Wednesday, 02-11-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-27 H
Referred to ECD, CPC, FIN, referral sheet 4
2025-01-23 H
Introduced and Pass First Reading.

Official Summary Text

RELATING TO TAXATION OF ADVERTISING REVENUE BY MAJOR SOCIAL MEDIA PLATFORMS.
DBEDT; Hawaii Broadband and Digital Equity Office; Broadband and Digital Equity Special Fund; Corporate Income Tax; Advertising; Major Social Media Platforms; Appropriation ($)
Establishes the Broadband and Digital Equity Special Fund to receive revenues earned by major social media platforms to fund initiatives expanding broadband access and local journalism initiatives. Directs the Department of Taxation to apply the state corporate income tax to advertising revenue earned by major social media platforms if the revenue is derived from content created within the State or from audiences located in the State. Appropriates funds. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1458

HOUSE OF REPRESENTATIVES

H.B. NO.

1458

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation of advertising revenue by Major Social media platforms
.

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

����
SECTION 1.
�
The legislature finds that major social media
platforms generate significant revenue from advertising targeted at Hawaii
residents, utilizing Hawaii-based content, or involving Hawaii audiences.
�
Despite this revenue generation, these
platforms often do not contribute adequately to the State's tax base.
�
This inequity affects local businesses and
the State's ability to address critical needs, such as broadband access and the
sustainability of local journalism.

����
The legislature further finds that
reliable broadband connectivity and robust local journalism are vital for
community resilience, civic engagement, and economic growth.
�
The allocation of additional revenue from
corporate taxes on social media advertising income can address disparities in
broadband access and strengthen journalism.

����
Accordingly, the purpose of this Act
is to:

����
(1)
�
Direct the
department of taxation to apply the state corporate income tax to advertising
revenue earned by major social media platforms if the revenue is derived from
content created within the State or from audiences located in the State; and

����
(2)
�
Allocate the revenue collected under this Act
to a newly-established broadband and digital equity special fund to support the
expansion of broadband access and local journalism initiatives.

����
SECTION
2.
�
Chapter 206S, Hawaii Revised
Statutes, is amended by adding a new section to be appropriately designated and
to read as follows:

����
"
�206S-
�
Broadband and digital equity special fund.
�
(a)
�
There is established within the state treasury
the broadband and digital equity special fund to be administered by the
department, into which shall be deposited the revenues collected under section
235- .

����
(b)
�

Moneys in the fund shall be used to:

����
(1)
�
Fund initiatives of the office under this
chapter to expand broadband access; and

����
(2)
�
Support local journalism initiatives.
"

����
SECTION 3.
�
Chapter 235, Hawaii Revised Statutes, is
amended by adding a new section to part IV to be appropriately designated and
to read as follows:

����
"
�235-
�
Taxation
of revenue derived from advertising on major social media platforms.
�
(a)
�
Notwithstanding any law to the contrary, all
major social media platforms earning advertising revenue from content created
within the State or from audiences located in the State shall be subject to the
tax under this part.

����
(b)
�
The department shall adopt rules pursuant to
chapter 91 to implement and enforce this section, including provisions for
determining the proportion of advertising revenue subject to the tax pursuant
to this section.

����
(c)
�
Revenues collected under this section shall
be deposited into the broadband and digital equity special fund established
under section 206S- .

����
(d)
�
As used in this section:

����
"Advertising revenue" means any
income generated from the sale of advertising, including but not limited to
targeted advertisements based on user data, interactions, or Hawaii-based
content or audiences.

����
"Major social media
platform" means an online platform that:

����
(1)
�
Has over one
million active users in the United States;

����
(2)
�
Earns revenue
primarily from advertising; and

����
(3)
�
Collects data
or otherwise interacts with users located in the State.
"

����
SECTION
4.
�
There is appropriated out of the
broadband and digital equity special fund established pursuant to section 2 of
this Act the sum of $
or so much thereof as may be necessary for fiscal year 2025-2026 and the same
sum or so much thereof as may be necessary for fiscal year 2026-2027 for the
purposes of the special fund.

����
The sums

appropriated shall be expended by the
department of business, economic development, and tourism for the purposes of
this Act.

����
SECTION
5.
�
New statutory material is
underscored.

����
SECTION 6.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DBEDT;
Hawaii Broadband and Digital Equity Office; Broadband and Digital Equity
Special Fund; Corporate Income Tax; Advertising on Major Social Media
Platforms; Appropriation

Description:

Directs
the Department of Taxation to apply the state corporate income tax to
advertising revenue earned by major social media platforms if the revenue is
derived from content created within the State or from audiences located in the
State.
�
Establishes the Broadband and
Digital Equity Special Fund to receive those revenues to fund initiatives
expanding broadband access and local journalism initiatives.
�
Appropriates funds.

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