H.B. 2424 Summary

• Exempts sales of mobility enhancing equipment, durable medical equipment, prescription drugs, diabetic supplies, prosthetic devices, medical oxygen, and human blood and its derivatives from Hawaii's general excise tax.

• Expands the definition of "prosthetic device" to include devices worn on or in the body that replace missing body parts, prevent/correct physical deformities, or support weak or deformed portions of the body, with examples including heart valves, hearing aids, pacemakers, and artificial limbs.

• Defines "durable medical equipment" according to federal regulations (42 CFR 414.202) and includes bath and shower chairs, bed pans, and raised toilet seats.

• Defines "mobility enhancing equipment" as equipment other than durable medical equipment that enables movement from one place to another and is appropriate for home or motor vehicle use.

• Exemption excludes amounts received for services in selling the medical items, and takes effect January 1, 2019 for taxable years beginning after December 31, 2018.