HI HB855

Establishes a general excise tax exemption for the gross proceeds or income from the manufacture, production, packaging, and sale of diapers in Hawaii.

Defines "diaper" as an absorbent garment for infants or toddlers that is either washable or disposable and meets specific quality standards including absorbency, waterproof outer cover, flexible leg openings, and refastening closures.

Disposable diapers must not use latex or common allergens and must meet or exceed quality standards for commercially available diapers.

Legislature finds that Hawaii families struggle to afford diapers due to the regressive nature of the general excise tax, with families spending an average of $80 monthly on diapers and one in three families unable to afford clean diapers.

Takes effect June 30, 3000.