HI HB687

Exempts food and food ingredients from Hawaii's general excise tax, with exceptions for alcoholic beverages, tobacco, prepared food, soft drinks, dietary supplements, and items sold from vending machines.

Defines "prepared food" as food sold in a heated state, sold with eating utensils provided by seller, or two or more food ingredients mixed together by seller; excludes bakery items, unheated food sold by weight or volume, and raw animal foods requiring consumer cooking.

Maintains general excise tax on prepared meals served to vulnerable populations (seniors, disabled persons, homeless individuals) in community settings, with exceptions for certain nonprofit meal programs and contracted services at reduced prices.

Establishes detailed definitions for excluded categories including alcoholic beverages (containing 0.5% or more alcohol by volume), soft drinks (excluding beverages with milk, milk substitutes, or over 50% juice), dietary supplements, and tobacco.

Takes effect upon approval and applies to taxable years beginning after December 31, 2023.