HB1339 Summary

• Exempts food and groceries from Hawaii's general excise tax, defining groceries as food for home consumption and excluding prepared food, alcoholic beverages, tobacco, dietary supplements, and vending machine items.

• Maintains existing exemptions for meals served to seniors (age 60+), disabled individuals, homeless persons, and residents of subsidized housing and shelters through specified programs and facilities.

• Expands Act 47 (2024) to exempt all medical and dental services from the general excise tax, removing previous limitations to only Medicare, Medicaid, and TRICARE-covered services.

• Addresses Hawaii's high cost of living by reducing tax burden on essential food and healthcare services, with estimated savings of over $687 annually for a family of four on food and $222 million statewide on medical services.

• Takes effect January 1, 2027.