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SB2792
THE SENATE
S.B. NO.
2792
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to general excise tax exemptions
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The purpose of
this Act is to establish general excise tax exemptions for the gross proceeds
or income from the sale of:
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(1)
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Groceries
that are eligible under the federal Supplemental Nutrition Assistance Program
(SNAP), regardless of the means of purchase or the SNAP eligibility of the purchaser;
and
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(2)
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Nonprescription
drugs.
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SECTION 2.
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Chapter 237, Hawaii Revised Statutes, is amended by adding two new
sections to be appropriately designated and to read as follows:
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�237-
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Supplemental
Nutrition Assistance Program eligible groceries exemption.
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(a)
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There shall be exempted from, and excluded
from the measure of, the taxes imposed by this chapter all of the gross
proceeds or income arising from the sale of groceries eligible under the
federal Supplemental Nutrition Assistance Program.
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(b)
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As used in this section:
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"Food"
or "food product" means substances, whether in liquid, concentrated,
solid, frozen, dried, or dehydrated form, that are sold for ingestion or
chewing by humans and are consumed for their taste or nutritional value.
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"Food" or "food product"
does not include food or food ingredients sold from a vending machine, whether
cold or hot; alcoholic beverages; dietary supplements; prepared food; soft
drinks; or tobacco.
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"Groceries"
means any food or food product for home consumption.
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The term "groceries" may be further
defined by the department by rule through the enumeration of items in rules or
tax informational releases; provided that the department shall consult with the
federal Food and Nutrition Service of the United States Department of
Agriculture in further defining the term "groceries" for purposes of
the Supplemental Nutrition Assistance Program.
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"Soft
drinks" means non-alcoholic beverages that contain natural or artificial
sweeteners.
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"Soft drinks" does
not include beverages that contain:
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(1)
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Milk
or milk products;
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(2)
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Soy,
rice, or similar milk substitutes; or
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(3)
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Greater
than fifty per cent vegetable or fruit juice by volume.
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�237-
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Exemption
for nonprescription drugs.
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(a)
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There shall be exempted from, and excluded
from the measure of, the taxes imposed by this chapter all of the gross
proceeds or income received from the sale of nonprescription drugs.
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(b)
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As used in this section:
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"Drug" means:
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(1)
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Articles
recognized in the official United States Pharmacopoeia, official United States
Pharmacopoeia Dispensing Information, official Homeopathic Pharmacopoeia of the
United States, or official National Formulary, or any supplement to any of
them;
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(2)
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Articles
intended for use in the diagnosis, cure, mitigation, treatment, or prevention
of disease in humans or animals;
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(3)
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Articles
(other than food or clothing) intended to affect the structure or any function
of the body of humans or animals; or
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(4)
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Articles
intended for use as a component of any article specified in paragraph (1), (2),
or (3); provided that the term "drug" shall not include devices or
their components, parts or accessories, cosmetics, or liquor as defined in
section 281-1.
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"Nonprescription drug" means
any packaged, bottled, or nonbulk chemical, drug, or medicine that may be
lawfully sold without a practitioner's order.
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SECTION 3.
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New statutory material is underscored.
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SECTION 4.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
General
Excise Tax; Supplemental Nutrition Assistance Program; Groceries; Nonprescription
Drugs; Exemptions
Description:
Establishes
a general excise tax exemption for the gross proceeds or income from the sale
of groceries that are eligible under the Supplemental Nutrition Assistance
Program (SNAP), regardless of the means of purchase or the SNAP eligibility of
the purchaser.
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Establishes a general
excise tax exemption for the gross proceeds or income from the sale of
nonprescription drugs.
The summary description
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not legislation or evidence of legislative intent.