STAND. COM. REP. NO. 924

Honolulu, Hawaii

RE: S.B. No. 1043

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1043, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to provide tax relief.

More specifically, this measure exempts from the general excise tax the sale of groceries and nonprescription drugs.

Your Committee received written comments in support of this measure from the ABC Stores; Boteilho Hawaii Enterprises, Inc.; The Chamber of Commerce Hawaii; Grassroot Institute of Hawaii; Hawaii Building and Construction Trades Council; Hawaii Food Industry Association; Hawaii State Teachers Association; Iron Workers Stabilization Fund; Libertarian Party of Hawaii; OPCMIA Local 630; and three individuals.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that Hawaii has the highest cost of living in the United States. Your Committee further finds that eliminating the general excise tax on groceries and nonprescription drugs will help to reduce the financial burden on families, seniors, and low-income individuals struggling with Hawaii's high cost of living.

Your Committee has amended this measure by adding a definition of the term "practitioner".

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1043, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1043, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair