RELATING TO TAXATION.

Taxes

Active

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

Sponsor: KONG
Last action: 2026-02-06
Official status: The committee(s) on HLT recommend(s) that the measure be deferred.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on the effective date beyond January 1, 2027.

Tax Rules for Large Cigars and Pipe Tobacco

This bill changes tax rules to exclude the direct sale of large cigars and pipe tobacco to adult consumers for personal use from being considered an unlawful shipment.

What This Bill Does

Changes a law so that selling large cigars and pipe tobacco directly to adult customers is not against the law if it's just for personal use.

Who It Names or Affects

Adult consumers who buy large cigars and pipe tobacco directly from sellers.
Businesses that sell large cigars and pipe tobacco directly to adult customers.

Terms To Know

Unlawful shipment: Sending or delivering products in a way that breaks the law.
Direct sale: When someone buys something directly from a seller without going through another store or company.

Limits and Unknowns

The bill only affects large cigars and pipe tobacco, not other types of tobacco products.
It does not change how taxes are paid on these items; it just changes when they can be shipped legally.

Bill History

2026-02-06 H
The committee(s) on HLT recommend(s) that the measure be deferred.
2026-02-03 H
Bill scheduled to be heard by HLT on Friday, 02-06-26 9:00AM in House conference room 329 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to HLT, CPC, FIN, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-14 H
Prefiled.

Official Summary Text

RELATING TO TAXATION.
Taxation; Large Cigars; Pipe Tobacco; Unlawful Shipment of Tobacco Products; Direct Sale; Personal Use; Exemption
Excludes from the offense of unlawful shipment of tobacco products the direct sale of large cigars and pipe tobacco to adult consumers for personal use. Effective 1/1/2027.

Current Bill Text

Read the full stored bill text

HB1532

HOUSE OF REPRESENTATIVES

H.B. NO.

1532

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

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 Act 62, Session
Laws of Hawaii 2023 (Act 62), provides, among other things, additional layers
of protection against the rapid growth of the use of electronic smoking devices
among youth and young adults.
�
Act 62
also establishes the offense of unlawful shipment of tobacco products, which
was intended to close the existing loophole in state law that allowed minors to
purchase electronic smoking devices on the Internet.
�
However, the new offense of unlawful shipment
of tobacco products includes large cigars and pipe tobacco, which has created
unintended consequences for many adult consumers in the State.
�
The legislature notes that federal law
permits large cigars and pipe tobacco to be mailed via the United States Postal
Service, unlike cigarettes and electronic smoking devices.

����
The purpose of this Act is to
exclude
from the offense of unlawful
shipment of tobacco products the direct sale of large cigars and pipe tobacco to
adult consumers for personal use
.

����
SECTION
2
.
�
Section
245-16.5, Hawaii Revised Statutes, is amended by amending subsection (b) to
read as follows:

����
"(b)
�
This section shall not apply to the shipment
of tobacco products if any of the following conditions are met:

����
(1)
�
The tobacco
products are exempt from taxes as provided by section 245-3(b); [
or
]

����
(2)
�
The
tobacco products are large cigars or pipe tobacco that is shipped to a person
twenty-one years of age or older for personal consumption only and not for
resale or distribution; or

���
[
(2)
]

(3)
�
All applicable state taxes on the
tobacco products are paid in accordance with the requirements of this
chapter."

����
SECTION
3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect on January 1,
2027.

INTRODUCED BY:

_____________________________

Report Title:

Taxation;
Large Cigars; Pipe Tobacco; Unlawful Shipment of Tobacco Products; Direct Sale;
Personal Use; Exemption

Description:

Excludes
from the offense of unlawful shipment of tobacco products the direct sale of
large cigars and pipe tobacco to adult consumers for personal use.
�
Effective 1/1/2027.

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