HI HB1738

Department of Taxation shall study the feasibility of replacing Hawaii's income and general excise taxes with a new retail sales tax or other tax, in consultation with the Department of Business, Economic Development, and Tourism.

Study must include economic impact analysis covering conversion costs, anticipated effects on taxpayers, percentage of sales tax exported to visitors, impact on state tax revenue collection, and required sales tax rate to replace current taxes.

Department of Taxation and Department of Business, Economic Development, and Tourism shall consult with the Tax Foundation of Hawaii, Chamber of Commerce of Hawaii, and other private entities during the study.

Department of Taxation must submit a report with findings, recommendations, and any proposed implementing legislation to the Legislature no later than twenty days before the 2025 regular session convenes.

Act takes effect upon approval.