STAND. COM. REP. NO. 408
Honolulu, Hawaii
RE: S.B. No. 606
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Sir:
Your Committee on Health and Human Services, to which was referred S.B. No. 606 entitled:
"A BILL FOR AN ACT RELATING TO HEARING AIDS,"
begs leave to report as follows:
The purpose and intent of this measure is to exempt from the general excise tax, gross receipts received by a hospital, infirmary, medical clinic, health care facility, pharmacy, or a practitioner licensed to administer drugs to an individual, from the sale of hearing aids.
Your Committee received testimony in support of this measure from the Disability and Communication Access Board, Democratic Party of Hawai‘i Kupūna Caucus, and four individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that hearing is one of the most important senses upon which an individual depends for communication. Your Committee further finds that hearing loss is known to be the largest modifiable risk factor for developing dementia. If left untreated, hearing loss can, over time, lead to an increase in cognitive decline and exacerbate social isolation, both of which can contribute to dementia risk. Your Committee finds however, depending on the technology used, hearing aids can cost about $1,500 to $4,900 each and are not typically covered by health insurance and are further subject to substantial amounts in general excise taxes. This measure will make hearing aids more affordable and aligns Hawaii with the majority of other state that exempt the sale of hearing aids from taxation.
Additionally, should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it considers the Department of Taxation's request that the effective date of the measure be amended to no earlier than January 1, 2024, to allow the Department sufficient time to make the necessary form and system changes.
Your
Committee has amended this measure by:
(1) Inserting language that defines "hearing aid" to mean the same as defined in section 451A-1, Hawaii Revised Statutes;
(2) Inserting an effective date of December
31,
2050, to encourage further
discussion; and
(3) Making
a technical, nonsubstantive amendment for the purposes of clarity and
consistency.
As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 606, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 606, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Health and Human Services,
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________________________________ JOY A. SAN BUENAVENTURA, Chair |
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