RELATING TO GENERAL EXCISE TAX EXEMPTIONS.

SB2935

THE SENATE

S.B. NO.

2935

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
.
�
Chapter
237
, Hawaii Revised
Statutes, is amended by adding
four
new section
s

to be appropriately designated and to read as follows:

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"
�237-
�
Exemption for eligible groceries.
�
(a)
�

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 all groceries eligible for purchase under the Supplemental
Nutrition Assistance Program and Special Supplemental Nutrition Program for
Women, Infants, and Children within the State, regardless of the means of
purchase and the eligibility of the purchaser for Supplemental Nutrition
Assistance Program or Special Supplemental Nutrition Program for Women,
Infants, and Children benefits.

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(b)
�
For the purposes of 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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"Groceries"
means any food or food product for home consumption.
�
"Groceries" may be further defined
by the department of taxation by rule or tax information release; 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 and Special Supplemental Nutrition Program for Women, Infants, and
Children.

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�
237-
�
Exemption for nonprescription drugs and
medical supplies.
�
(a)
�
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 and medical
supplies.

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(b)
�
For the purposes of this section:

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"Drug"
means:

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(1)
�
Articles recognized in the official
United States Pharmacopeia, official United States Pharmacopeia Dispensing
Information, official Homeopathic Pharmacop
o
eia of the
United States, or official National Formulary, or any supplement to any of
these publications;

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(2)
�
Articles intended for use in the
diagnosis, cure, mitigation, treatment, or prevention of disease in humans or
animals;

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(3)
�
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)
�
Articles intended for use as a
component of any article specified in paragraph (1), (2), or (3); provided that
the term "drug" does not include devices or their components, parts
or accessories, cosmetics, or liquor as defined in section 281-1.

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"Health
care facility" has the same meaning as defined in section 323D-2.

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"Medical
supplies" means items for medical use that are suitable for use in a
health care facility or in the home.

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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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�237-
�
Exemption for
feminine hygiene products
.
�
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
feminine hygiene products, including but not limited to sanitary napkins; sanitary
towels; tampons; panty liners; douches; feminine hygiene syringes; menstrual
cups; and creams, foams, ointments, jellies, powders, and sprays used for
vaginal hygiene purposes.

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�237-
�
Exemption for
diapers
.
�
(
a)
�

There shall be exempted from, and excluded from the measure of, the
taxes imposed by this chapter all the gross proceeds or income from the sale of
diapers.

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(b)
�
For the purposes of this
section, "diaper" means a washable or disposable absorbent garment
that may be worn by an infant or toddler who is not toilet-trained; provided
that,
if
disposable:

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(1)
�
Does not contain any latex or common
allergens; and

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(2)
�
Meets or exceeds the quality standards for
diapers commercially available through retail sale in the following categories:

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(A)
�
Absorbency (with acceptable rates
for first and
second
wetting);

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(B)
�
Waterproof outer cover;

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(C)
�
Flexible leg openings; and

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(D)
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Refastening closures.
"

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SECTION

2
.
�
New statutory material is underscored.

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SECTION

3
.
�
This Act shall take effect
on J
anuary
1, 202
7
.

INTRODUCED BY:

_____________________________

Report Title:

GET; Exemptions;
Groceries; Nonprescription Drugs
and Medical Supplies; Feminine Hygiene Products;
Diapers

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 and Special Supplemental Nutrition Program for
Women, Infants, and Children, regardless of the means of purchase and the
program eligibility of the purchaser; nonprescription drugs and medical
supplies; feminine hygiene products; and diapers.
�
Effective
1/1/
202
7
.

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