HI HB945

Reduces general excise tax on groceries eligible for Supplemental Nutrition Assistance Program (SNAP) and Women, Infants, and Children (WIC) programs to 3% in 2024, 2% in 2025, and 1% in 2026, then exempts them entirely starting January 1, 2027.

Reduces general excise tax on nonprescription drugs using the same rate schedule (3% in 2024, 2% in 2025, 1% in 2026), then exempts them entirely starting January 1, 2027.

Applies tax reductions to all SNAP and WIC-eligible groceries regardless of purchaser's actual program eligibility or means of purchase.

Defines "groceries" as food products for home consumption and allows the Department of Taxation to further define the term in consultation with the federal Food and Nutrition Service.

Takes effect July 1, 2023, addressing Hawaii's high cost of living and food insecurity by reducing taxes on essential items.