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Bill Summary · HB 955

Legislative bill overview

HB 955 proposes modifications to Hawaii's General Excise Tax (GET), a 4% statewide consumption tax applied to most goods and services. The bill was introduced in January 2025 and has been referred to the Health and Human Services Committee (HLT) and Finance Committee (FIN) for review before being carried over to the 2026 legislative session.

Why is this important

Hawaii's GET is a primary revenue source for state operations and generates billions annually. Changes to GET structure, rates, or exemptions directly affect state budget capacity, business costs, consumer prices, and economic competitiveness. Given Hawaii's heavy reliance on this tax, modifications could have substantial ripple effects across the island economy.

Potential points of contention

  • Revenue impact: Depending on proposed changes, the state could face budget shortfalls or surplus, affecting education, healthcare, and infrastructure funding
  • Regressive burden: GET modifications may disproportionately affect lower-income residents if exemptions are reduced or rates increased, as consumption taxes take a larger percentage of poor households' income
  • Business competitiveness: Changes could alter Hawaii's business environment relative to mainland states, potentially affecting tourism, retail, and local business viability

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

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