HI SB2542

Exempts medical services provided by physicians and advanced practice registered nurses acting as primary care providers from Hawaii's general excise tax, effective January 1, 2021.

Defines "medical services" as professional services rendered under Hawaii chapters 453 or 457, including services provided in hospitals, medical clinics, and private medical practices.

Addresses Hawaii's 24% physician shortage statewide, with more severe shortages on neighbor islands (44% in Hawaii County, 36% in Maui County, 32% in Kauai County).

Cites that Hawaii is the only state taxing medical services with the general excise tax, creating unviable operating conditions for community physicians with narrow profit margins.

Takes effect July 1, 2050.