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Bill

Bill

HB 1585

RELATING TO THE GENERAL EXCISE TAX.

2026 Regular Session Introduced by Sam Kong

Hawaii bill HB 1585 modifies the general excise tax structure; specific changes and fiscal impact pending committee review.

Referred to HSH, ECD, FIN, referral sheet 1
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Bill Summary · HB 1585

Legislative bill overview

HB 1585 is a Hawaii bill introduced by Sam Kong that relates to modifications of the state's general excise tax (GET). The bill was prefiled on January 16, 2026, and passed first reading on January 21, 2026, before being referred to three House committees: Housing (HSH), Economic Development (ECD), and Finance (FIN) for further review.

Why is this important

Hawaii's general excise tax is a broad-based 4% tax on most business activities and is a major revenue source for the state. Any modifications to this tax structure could affect consumer prices, business operations, government revenue, and economic competitiveness. The referral to three committees suggests this bill may have implications across housing, economic development, and fiscal policy.

Potential points of contention

  • Revenue impact: Changes to GET rates or exemptions could reduce state revenue needed for services unless offset by other measures or economic growth
  • Economic competitiveness: Modifications affecting business taxation could influence whether Hawaii remains attractive for investment and operations compared to other states
  • Regressivity concerns: GET modifications may disproportionately affect lower-income residents if the tax becomes broader or rates increase on basic goods and services

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

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