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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1085 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"(a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay, for the privilege of conducting business and other activities in the State, an excise tax equal to:
[(1) 5.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer
after June 30, 1998, whether or not sold at wholesale, or if not sold, then at
the same rate upon the use by the wholesaler or dealer;
(2) 6.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer
after September 30, 2002, whether or not sold at wholesale, or if not sold,
then at the same rate upon the use by the wholesaler or dealer;
(3) 6.50
cents for each cigarette sold, used, or possessed by a wholesaler or dealer
after June 30, 2003, whether or not sold at wholesale, or if not sold, then at
the same rate upon the use by the wholesaler or dealer;
(4) 7.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer
after June 30, 2004, whether or not sold at wholesale, or if not sold, then at
the same rate upon the use by the wholesaler or dealer;
(5) 8.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer on
and after September 30, 2006, whether or not sold at wholesale, or if not sold,
then at the same rate upon the use by the wholesaler or dealer;
(6) 9.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer on
and after September 30, 2007, whether or not sold at wholesale, or if not sold,
then at the same rate upon the use by the wholesaler or dealer;
(7) 10.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer on
and after September 30, 2008, whether or not sold at wholesale, or if not sold,
then at the same rate upon the use by the wholesaler or dealer;
(8) 13.00
cents for each cigarette sold, used, or possessed by a wholesaler or dealer on
and after July 1, 2009, whether or not sold at wholesale, or if not sold, then
at the same rate upon the use by the wholesaler or dealer;
(9) 11.00
cents for each little cigar sold, used, or possessed by a wholesaler or dealer
on and after October 1, 2009, whether or not sold at wholesale, or if not sold,
then at the same rate upon the use by the wholesaler or dealer;
(10) 15.00
cents for each cigarette or little cigar sold, used, or possessed by a
wholesaler or dealer on and after July 1, 2010, whether or not sold at
wholesale, or if not sold, then at the same rate upon the use by the wholesaler
or dealer;
(11)] (1) 16.00 cents for each cigarette or little
cigar sold, used, or possessed by a wholesaler or dealer on and after July 1,
2011, whether or not sold at wholesale, or if not sold, then at the same rate
upon the use by the wholesaler or dealer;
(2) 21.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after January 1, 2026, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
[(12)] (3)
Seventy per cent of the wholesale price
of each article or item of tobacco products, other than large cigars,
electronic smoking devices, and e-liquids, sold by the wholesaler or dealer on
and after September 30, 2009, whether or not sold at wholesale, or if not sold,
then at the same rate upon the use by the wholesaler or dealer;
[(13)] (4)
Fifty per cent of the wholesale price of
each large cigar of any length sold, used, or possessed by a wholesaler or
dealer on and after September 30, 2009, whether or not sold at wholesale, or if
not sold, then at the same rate upon the use by the wholesaler or dealer; and
[(14)] (5)
Seventy per cent of the wholesale price
of each electronic smoking device or e-liquid sold, used, or possessed by a
wholesaler or dealer on and after January 1, 2024, whether or not sold at
wholesale, or if not sold, then at the same rate upon the use by the wholesaler
or dealer.
Where the tax imposed has been paid on cigarettes, little cigars, or tobacco products that thereafter become the subject of a casualty loss deduction allowable under chapter 235, the tax paid shall be refunded or credited to the account of the wholesaler or dealer. The tax shall be applied to cigarettes through the use of stamps."
SECTION 2. Section 245-15, Hawaii Revised Statutes, is amended to read as follows:
"§245-15 Disposition of revenues. All moneys collected pursuant to this chapter
shall be paid into the state treasury as state realizations to be kept and
accounted for as provided by law; provided that, of the moneys collected [under
the tax imposed pursuant to:
(1) Section
245-3(a)(5), after September 30, 2006, and prior to October 1, 2007, 1.0 cent
per cigarette shall be deposited to the credit of the Hawaii cancer research
special fund, established pursuant to section 304A-2168, for research and
operating expenses and for capital expenditures;
(2) Section
245-3(a)(6), after September 30, 2007, and prior to October 1, 2008:
(A) 1.5 cents per cigarette shall be deposited to the credit of the
Hawaii cancer research special fund, established pursuant to section 304A-2168,
for research and operating expenses and for capital expenditures;
(B) 0.25 cents per cigarette shall be deposited to the credit of the
trauma system special fund established pursuant to section 321-22.5; and
(C) 0.25 cents per cigarette shall be deposited to the credit of the
emergency medical services special fund established pursuant to section
321-234;
(3) Section
245-3(a)(7), after September 30, 2008, and prior to July 1, 2009:
(A) 2.0 cents per cigarette shall be deposited to the credit of the
Hawaii cancer research special fund, established pursuant to section 304A-2168,
for research and operating expenses and for capital expenditures;
(B) 0.5 cents per cigarette shall be deposited to the credit of the
trauma system special fund established pursuant to section 321-22.5;
(C) 0.25 cents per cigarette shall be deposited to the credit of the
community health centers special fund established pursuant to section 321-1.65;
and
(D) 0.25 cents per cigarette shall be deposited to the credit of the
emergency medical services special fund established pursuant to section
321-234;
(4) Section
245-3(a)(8), after June 30, 2009, and prior to July 1, 2013:
(A) 2.0 cents per cigarette shall be deposited to the credit of the
Hawaii cancer research special fund, established pursuant to section 304A-2168,
for research and operating expenses and for capital expenditures;
(B) 0.75 cents per cigarette shall be deposited to the credit of the
trauma system special fund established pursuant to section 321-22.5;
(C) 0.75 cents per cigarette shall be deposited to the credit of the
community health centers special fund established pursuant to section 321-1.65;
and
(D) 0.5 cents per cigarette shall be deposited to the credit of the
emergency medical services special fund established pursuant to section
321-234;
(5) Section
245-3(a)(11), after June 30, 2013, and prior to July 1, 2015:
(A) 2.0 cents per cigarette shall be deposited to the credit of the
Hawaii cancer research special fund, established pursuant to section 304A-2168,
for research and operating expenses and for capital expenditures;
(B) 1.5 cents per cigarette shall be deposited to the credit of the
trauma system special fund established pursuant to section 321-22.5;
(C) 1.25 cents per cigarette shall be deposited to the credit of the
community health centers special fund established pursuant to section 321-1.65;
and
(D) 1.25 cents per cigarette shall be deposited to the credit of the
emergency medical services special fund established pursuant to section
321-234; and
(6) Section
245-3(a)(11), after June 30, 2015, and thereafter:
(A) 2.0 cents per cigarette shall be deposited to the credit of the
Hawaii cancer research special fund, established pursuant to section 304A-2168,
for research and operating expenses and for capital expenditures;
(B) 1.125 cents per cigarette, but not more than $7,400,000 in a
fiscal year, shall be deposited to the credit of the trauma system special fund
established pursuant to section 321-22.5;
(C) 1.25 cents per cigarette, but not more than $8,800,000 in a
fiscal year, shall be deposited to the credit of the community health centers
special fund established pursuant to section 321-1.65; and
(D) 1.25 cents per cigarette, but not more than $8,800,000 in a
fiscal year, shall be deposited to the credit of the emergency medical services
special fund established pursuant to section 321-234.]
each
fiscal year:
(1) Beginning July 1, 2025, twenty-five per cent or $14,080,000, whichever is less, shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;
(2) Beginning July 1, 2025, twenty-five per cent or $7,400,000, whichever is less, shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;
(3) Beginning July 1, 2025, twenty-five per cent or $8,800,000, whichever is less, shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and
(4) Beginning July 1, 2025, twenty-five per cent or $8,800,000, whichever is less, shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234.
The
department shall provide an annual accounting of these dispositions to the
legislature."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Cigarette Tax; Tobacco Tax; Disposition of Revenues
Description:
Increases the tax rates for cigarettes and little cigars beginning 1/1/2026, amends the disposition of tax revenues to certain non-general funds starting from fiscal year 2026-2027, with the excess carrying over to the general fund, and expands the disposition of tax revenues to the non-general funds to include all tobacco product taxes. Repeals obsolete historical tax rates. Effective 7/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.