HB689 Summary

• Reduces Hawaii's General Excise Tax rate from 4% to 3% for most business activities, effective for taxable years beginning after December 31, 2023.

• Applies the 3% rate to sales of tangible personal property, contracting services, theater and amusement businesses, sales representatives, service businesses, and other general business activities.

• Maintains the 0.5% tax rate for wholesalers, producers, and manufacturers, which remain unchanged.

• Creates a one percentage point reduction in the general excise tax burden on Hawaii taxpayers and businesses statewide.