HB522 • 2026

RELATING TO THE GENERAL EXCISE TAX.

Housing Labor Small Business Taxes

Active

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

Sponsor: WARD, REYES ODA, SHIMIZU
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on enforcement mechanisms for passing tax savings to customers or consequences if a business fails to do so.

Monthly Tax Holiday for Small Businesses

This bill establishes a monthly tax holiday for small businesses in Hawaii, allowing them to sell goods without paying the general excise tax on the first Saturday of each month.

What This Bill Does

Establishes a general excise tax holiday on the first Saturday of each month for small businesses within the State.
Requires that any savings from not having to pay taxes be passed on to customers.
Doesn't apply to sales made through the internet, telephone, or mail-order.
Exempts small businesses from needing special licenses during the holiday.

Who It Names or Affects

Small businesses in Hawaii that employ fewer than fifty people.
Customers who buy goods and services from these businesses on tax-free days.

Terms To Know

General Excise Tax: A tax charged by the state of Hawaii on most sales, use, rental, or business privilege transactions.
Small Business: An independently owned and operated for-profit entity with fewer than fifty employees in Hawaii.

Limits and Unknowns

The bill does not specify how the tax savings will be enforced.
It is unclear what happens if a small business fails to pass on the tax savings to customers.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-21 H
Referred to ECD, FIN, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO THE GENERAL EXCISE TAX.
Small Business Caucus Package; GET; Tax Holiday; Monthly; Saturdays
Establishes a general excise tax holiday on the first Saturday of each month for small businesses within the State.

Current Bill Text

Read the full stored bill text

HB522

HOUSE OF REPRESENTATIVES

H.B. NO.

522

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE GENERAL EXCISE TAX
.

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

����
SECTION
1.
�
Chapter 237, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

����
"
�237-
��
��
Monthly
tax holiday; small businesses.
�
(a)
�
Notwithstanding any law to the contrary,
taxes under this chapter shall not be due on any gross proceeds of sales made or
gross income earned by any small business in the State on the first Saturday of
each month during the period beginning at 12:01 a.m. and ending at 12:00
midnight; provided that all savings generated by this section shall be passed
on by the seller to the purchaser.
�
This
exemption shall not apply to sales on goods that will be resold in any manner.

����
(b)
�
The exemption provided in this section shall
not apply to:

����
(1)
�
Rebates, layaway sales, rain checks, or
exchanges when the exchanges occur before or after the tax holiday period; or

����
(2)
�
Items purchased via the internet,
telephone, or mail-order.

����
(c)
�
A taxpayer shall not be required to obtain
any special license, permit, or other documentation during the exemption
holiday period; provided that the taxpayer's records shall clearly identify the
type of goods or services sold, the date of sale, and the price of goods or
services sold.

����
(d)
�
For the purposes of this section, "small
business" means a for-profit corporation, limited liability company,
partnership, limited partnership, sole proprietorship, or other legal entity
that:

����
(1)
�
Is domiciled and authorized to do business
in Hawaii;

����
(2)
�
Is independently owned and operated; and

����
(3)
�
Employs fewer than fifty employees in
Hawaii.
"

����
SECTION
2.
�
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:

Small
Business Caucus Package; GET; Tax Holiday; Monthly; Saturdays

Description:

Establishes
a general excise tax holiday on the first Saturday of each month for small
businesses within the State.

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