HI HB2134

Exempts gross income from commercial real property leases from Hawaii's general excise tax (GET) when the tenant qualifies as a small business.

Defines "small business" as independently owned with gross receipts of $3,000,000 or less annually, 25 or fewer full-time equivalent employees, and not a subsidiary, affiliate, or franchisee of a larger entity with more than 50 global locations.

Requires aggregation of gross receipts and employee counts across all commonly owned or controlled business entities to prevent circumvention of the exemption thresholds.

Amends the existing 4% GET rate on real property leasing to exclude qualifying small business leases from taxation.

Takes effect July 1, 2026.