HI HB1085

Increases excise tax rates on cigarettes and little cigars effective January 1, 2026, with the new per-cigarette rate to be determined (currently 16 cents per cigarette since July 2011)

Restructures the disposition of tobacco tax revenues to special funds beginning July 1, 2025, allocating specified percentages (to be determined) with dollar caps to four funds: Hawaii cancer research special fund, trauma system special fund, community health centers special fund, and emergency medical services special fund

Expands revenue distribution to include all tobacco product taxes, not just per-cigarette amounts, with excess revenues above the caps going to the general fund

Repeals obsolete historical tax rate provisions dating back to 1998-2011 that are no longer applicable

Maintains existing tax rates of 70% of wholesale price for tobacco products, electronic smoking devices, and e-liquids, and 50% of wholesale price for large cigars