H.B. 1483 Summary

• Reduces general excise tax on groceries eligible under the federal Supplemental Nutrition Assistance Program (SNAP) and Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) from 4% to 3% on January 1, 2024, then to 2% on January 1, 2025, 1% on January 1, 2026, and eliminates the tax entirely on January 1, 2027.

• Reduces general excise tax on nonprescription drugs, medical supplies, and durable medical equipment using the same four-year phase-out schedule: 3% starting January 1, 2024, decreasing to 2%, then 1%, and finally 0% on January 1, 2027.

• Defines "groceries" as any food or food product for home consumption, with the Department of Taxation authorized to further define items in consultation with the federal Food and Nutrition Service.

• Defines "nonprescription drug," "durable medical equipment," and "drug" by reference to existing Hawaii Revised Statutes sections 328-1, 321-542, and 329-1 respectively.

• Becomes effective on July 1, 2023, with tax reductions taking effect on January 1, 2024.