HI HB281

Exempts food and groceries from Hawaii's general excise tax, with "groceries" defined as any food or food product for home consumption and "food" excluding alcoholic beverages, tobacco, prepared food, soft drinks, dietary supplements, and items from vending machines.

Maintains existing exceptions for prepared meals served to seniors, disabled persons, residents of shelters for battered women and children, and homeless individuals.

Expands the 2024 Act 47 exemption by removing restrictions that limited medical and dental service tax exemptions to Medicare, Medicaid, and TRICARE programs, making all medical and dental services provided by licensed practitioners exempt from general excise tax.

Defines "medical or dental practitioner" to include physicians, osteopathic physicians, dentists, advanced practice registered nurses, and pharmacists, with services performed by physician's assistants and nurses under their direction also covered.

Takes effect on January 1, 2027.