THE SENATE

S.B. NO.

361

THIRTY-FIRST LEGISLATURE, 2021

S.D. 1

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

"237-   Supplemental Nutrition Assistance Program eligible groceries exemption. (a) There shall be exempted 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.

(b) As used in this section:

"Food" or "food product" 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 product" does not include food or food ingredients sold from a vending machine, whether cold or hot; alcoholic beverages; dietary supplements; prepared food; or tobacco.

"Groceries" means any food or food product for home consumption. The term "groceries" may be further defined by the department by rule through the enumeration of items in rules or tax informational releases; provided that the department shall consult with the federal Food and Nutrition Service of the United States Department of Agriculture in further defining the term "groceries" for purposes of the Supplemental Nutrition Assistance Program.

"Soft drinks" means non-alcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" does not include beverages that contain:

(1) Milk or milk products;

(2) Soy, rice, or similar milk substitutes; or

(3) Greater than fifty per cent vegetable or fruit juice by volume."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021.


 


 

Report Title:

General Excise Tax; Supplemental Nutrition Assistance Program; Groceries; Exemption

 

Description:

Establishes a general excise tax exemption for the gross proceeds or income from the sale of groceries that are eligible under the Supplemental Nutrition Assistance Program (SNAP), regardless of the means of purchase and the SNAP eligibility of the person. Applies to taxable years after 12/31/2021. (SD1)

 

 

 

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