HI HB1611

Gradually reduces Hawaii's general excise tax on groceries and nonprescription drugs from 3.5% starting January 1, 2027, decreasing by 0.5% annually until reaching full exemption on January 1, 2034

Prohibits counties from imposing their surcharge on groceries and nonprescription drugs beginning January 1, 2027

Exempts wholesale transactions of groceries and nonprescription drugs from the general excise tax starting January 1, 2028

Defines "groceries" as food for human consumption excluding alcoholic beverages, tobacco, and hot prepared foods for immediate consumption

Addresses food insecurity affecting nearly 30% of Hawaii households, with the current 4.5% tax on groceries estimated to cost residents $220-250 million annually