HI HB887

Exempts medical services from Hawaii's general excise tax and excludes them from the tax measure under Chapter 237, Hawaii Revised Statutes.

Defines "medical services" as professional services provided by hospitals, medical clinics, and facilities licensed under 25 specified state chapters covering physicians, dentists, nurses, and other health care professionals.

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

Addresses Hawaii's high cost of living by reducing the regressive general excise tax burden on health care, which is a major expense for local families.

Aligns Hawaii with 41 other states that generally exclude medical services from sales tax, while noting Hawaii currently taxes medical and dental services unlike most states.