HI HB688

Exempts medical services from Hawaii's general excise tax, excluding gross proceeds from the tax imposed under Chapter 237 of Hawaii Revised Statutes.

Defines "medical services" as professional services provided by licensed hospitals, medical clinics, and facilities under 27 specified Hawaii Revised Statutes chapters covering various medical professions and specialties.

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

Aims to reduce tax burden on families in Hawaii, which has the highest cost of living in the nation and is one of few states that tax medical and dental services.