HI HB281

Exempts food and groceries from Hawaii's general excise tax (GET), with exclusions for prepared foods, alcoholic beverages, tobacco, soft drinks, and vending machine items

Expands the medical services GET exemption from Act 47 (2024), which covered only Medicare, Medicaid, and TRICARE services, to include all healthcare-related goods and services from hospitals, clinics, pharmacies, and medical/dental practitioners

A family of four on the Thrifty Food Plan spending $1,431 per month on food would save over $687 annually under the grocery exemption

Estimated $222 million tax reduction for Hawaii residents and healthcare professionals from the medical services exemption

Takes effect January 1, 2027