HB 1085 Summary

• Increases excise tax on cigarettes and little cigars from 16.00 cents to a new rate (amount not specified in bill text) effective January 1, 2026

• Repeals obsolete historical cigarette tax rate provisions from 1998-2015, consolidating tax structure

• Amends Section 245-15 to redistribute tobacco tax revenues starting fiscal year 2026-2027 to four special funds: Hawaii cancer research, trauma system, community health centers, and emergency medical services (with caps and percentages to be determined)

• Directs excess tobacco tax revenues beyond designated fund allocations to carry over to the state general fund

• Expands tax revenue disposition to include all tobacco products, not just cigarettes, effective July 1, 2025