HI HB522

Establishes a monthly general excise tax holiday on the first Saturday of each month for small businesses in Hawaii, exempting taxes on gross proceeds of sales and gross income earned during 12:01 a.m. to 12:00 midnight.

Requires all tax savings from the exemption to be passed on by sellers to purchasers, and excludes goods purchased for resale from the exemption.

Exempts rebates, layaway sales, rain checks, exchanges occurring outside the tax holiday period, and items purchased via internet, telephone, or mail-order.

Defines "small business" as a for-profit entity domiciled and authorized to do business in Hawaii, independently owned and operated, with fewer than 50 employees in Hawaii.

Effective for taxable years beginning after December 31, 2025.