S.B. NO.














relating to general excise tax.





SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237-   Amounts not taxable for food or food ingredients. (a) The excise tax assessed under this chapter shall not apply to amounts received for food or food ingredients.

(b) Excise taxes assessed on alcoholic beverages, dietary supplements, prepared food, and tobacco shall not be exempt from this chapter pursuant to this section.

(c) As used in this section:

"Alcoholic beverages" means beverages that are suitable for human consumption and contain one-half of one per cent or more alcohol by volume.

"Dietary supplement" means any product, other than tobacco, intended to supplement the diet that:

(1) Contains one or more of the following dietary ingredients:

(A) A vitamin;

(B) A mineral;

(C) An herb or other botanical element;

(D) An amino acid; or

(E) A dietary substance for use by humans to supplement a person's diet by increasing the total dietary intake; or a concentrate, metabolite, constituent, extract, or combination of any ingredient described in this definition;

(2) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for ingestion in such form, is not represented as conventional food and is not represented for use as a sole item of a meal or of a diet; and

(3) Is required to be labeled as a dietary supplement, identifiable by the "Supplement Facts" box found on the label as required pursuant to title 21 Code of Federal Regulations section 101.36, as amended or renumbered.

"Food" or "food ingredients" means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Food" or "food ingredients" does not include food or food ingredients sold from a vending machine, whether cold or hot; alcoholic beverages; dietary supplements; prepared food; or tobacco.

"Prepared food" means:

(1) Food sold in a heated state or heated by the seller;

(2) Food sold with eating utensils provided by the seller, including plates, bowls, chopsticks, knives, forks, spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used exclusively to transport the food; or

(3) Two or more food ingredients mixed or combined by the seller for sale as a single item, except:

(A) Food that is only cut, repackaged, or pasteurized by the seller; or

(B) Raw eggs, fish, meat, poultry, or foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal Food and Drug Administration in chapter 3, part 401.11 of the Food Code, published by the Food and Drug Administration, as amended or renumbered, to prevent foodborne illness.

"Prepared food" does not include food sold in an unheated state by weight or volume as a single item or bakery items, such as bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, or tortillas.

"Tobacco" includes cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2020.




















Report Title:

General Excise Tax; Food; Exemption



Provides a general excise tax exemption for certain food or food ingredients.




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.