HI SB628

Increases the general excise tax rate from 4% to 5% on businesses including retailers, contractors, amusement operators, service providers, and other business activities, effective July 1, 2025.

Establishes a new teacher salary special fund within the Department of Education to receive deposits for teacher salaries and compensation.

Directs 50% of revenues generated from the general excise tax increase to the teacher salary special fund and 50% to the school facilities special fund, beginning July 1, 2025.

Modifies section 237-16.5 to increase the tax rate on real property leasing from 4% to 5% of gross proceeds or gross income received from the lease.

Creates statutory framework for the teacher salary special fund to be administered by the Department of Education and funded through general excise tax revenues and other public or private sources.