HI SB3197

Exempts groceries (items eligible for SNAP benefits) and nonprescription drugs from Hawaii's general excise tax to reduce costs for residents

Eliminates state income tax on unemployment compensation benefits and removes related withholding requirements

Doubles the standard deduction for individuals earning under $100,000 and joint filers earning under $200,000 (e.g., $2,200 to $4,400 for single filers, $4,400 to $8,800 for joint filers)

Repeals previously enacted incremental increases to standard deduction amounts that were scheduled to phase in through 2027

Addresses Hawaii's regressive tax burden, where low-income households pay approximately 15% of income in state and local taxes compared to 9% for highest earners