HI HB887

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

Defines "medical services" as professional services provided by licensed hospitals, medical clinics, and facilities operating under 24 specified state licensing chapters covering physicians, dentists, nurses, and other health care professionals.

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

Legislature finds Hawaii has the highest cost of living in the nation and that the general excise tax disproportionately affects low-income and middle-class families; notes 41 states generally exclude medical services from sales taxes.