THE SENATE	S.B. NO.	2571
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

relating to General Excise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to establish a general excise tax exemption on the gross proceeds from the sale of groceries that are eligible for purchase under the Supplemental Nutrition Assistance Program (SNAP), regardless of the means of purchase or whether the purchaser is eligible for SNAP benefits.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-   There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or income arising from the sale of Supplemental Nutrition Assistance Program-eligible items; provided that soft drinks shall not be exempted by this section."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2022.

INTRODUCED BY:

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Report Title:

General Excise Tax; Exemptions; SNAP Eligible Groceries

Description:

Excludes Supplemental Nutrition Assistance Program-eligible grocery staples from general excise tax assessment.

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