HI HR93

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 lieu of the state general excise tax.

Working group to be chaired by the Director of Taxation and include representatives from the 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 must develop a procedure for imposing the sales tax, establish an appropriate tax rate, and project revenue generation from the tax.

Exempt essential food items such as meat, dairy products, vegetables, and fruits from the sales tax while taxing non-essential items from restaurants, snack shops, vending machines, and discretionary grocery products.

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