HI HCR122

Request the Department of Taxation to convene a working group to evaluate the feasibility of imposing a sales tax on non-essential food items in place of the state general excise tax.

Director of Taxation to serve as chairperson and select representatives from Department of Health, State Tax Review Commission, University of Hawaii Department of Human Nutrition/Food and Animal Sciences, Council on Revenues, and Retail Merchants of Hawaii.

Working group to develop a procedure for imposing the sales tax, determine an appropriate tax rate, and project revenue from the tax, with exemptions for essential food items such as meat, dairy, vegetables, and fruits.

Working group to submit findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the 2014 Regular Session convenes.

Rationale includes generating revenue from 8 million annual visitors who spent $2.5 billion on food and beverages in 2011, and encouraging healthier eating habits while protecting residents' access to essential groceries.