S.B. 1474 Summary

• Increases the general excise tax rate from 4% to 4.5% on most business activities including retail sales, contracting, amusements, services, and other business activities.

• Increases the use tax rate from 4% to 4.5% on imported tangible personal property, intangible property, and imported services.

• Dedicates additional revenues generated from the tax increases to the Department of Education and University of Hawaii through special accounts in the general fund, with specific percentages or dollar amounts to be determined (blank in current draft).

• Updates corresponding provisions in Hawaii Revised Statutes §237-13, §237-15, §237-16.5, §237-18, §238-2, §238-2.2, §238-2.3, and §238-14 to reflect the new 4.5% rate.

• Effective date: July 1, 2050.