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Bill

Bill

HB 180

RELATING TO GENERAL EXCISE TAX EXEMPTIONS.

2026 Regular Session Introduced by Della Belatti and 15 co-sponsors

HB 180 modifies Hawaii's General Excise Tax exemptions, potentially affecting state revenue and which businesses receive preferential tax treatment.

Carried over to 2026 Regular Session.
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Bill Summary · HB 180

Legislative bill overview

HB 180 proposes modifications to Hawaii's General Excise Tax (GET) exemptions, though the specific exemptions targeted are not detailed in the bill summary provided. The measure was introduced in January 2025 and carried over to the 2026 legislative session for further consideration. It has been referred to three House committees: Health and Social Services (HSH), Economic and Community Development (ECD), and Finance (FIN).

Why is this important

The General Excise Tax is Hawaii's primary revenue source, applying broadly to most business transactions at rates between 0.5% and 4.712%. Changes to exemptions directly affect state revenue, business operating costs, and which economic sectors receive preferential tax treatment. This bill's passage or failure could reshape the tax burden across Hawaii's economy and impact the state budget.

Potential points of contention

  • Revenue impact: Expanding exemptions reduces state tax revenue without identified offsetting revenue sources, potentially affecting education, healthcare, and infrastructure funding
  • Selective favoritism: Determining which industries or activities merit exemptions raises fairness questions about whether exemptions benefit broad public interests or narrow special interests
  • Implementation complexity: New exemptions require clear definitions and administrative mechanisms to prevent misuse, adding compliance and enforcement costs

Compiled from official sources — confirm details with the bill’s official record.

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