STAND. COM. REP. NO.  667

 

Honolulu, Hawaii

                , 2023

 

RE:   H.B. No. 1050

      H.D. 1

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committees on Economic Development and Health & Homelessness, to which was referred H.B. No. 1050 entitled:

 

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX EXEMPTIONS,"

 

beg leave to report as follows:

 

     The purpose of this measure is to exempt certain groceries, feminine hygiene products, incontinence products, and over-the-counter drugs from the general excise tax.

 

     Your Committees received testimony in support of this measure from the Office of the Governor, Department of Human Services, Hawaii State Council on Developmental Disabilities, Hawaii Public Health Institute, Mai Movement Hawaii, Hawaii Food Industry Association, Hawaii Farm Bureau, Local Food Coalition, Hawaii Health & Harm Reduction Center, Period Law, Maui Chamber of Commerce, Hawaii Food Bank, Period. Inc., and nine individuals.  Your Committees received comments on this measure from the Department of Budget and Finance, Department of Taxation, Tax Foundation of Hawaii, and Grassroot Institute of Hawaii.  

 

     Your Committees find that the high cost of living in Hawaii has made it difficult for households to afford basic necessities.  Your Committees further find that lower income households spend a higher percentage of their income on food and essential items.  Taxes on these items disproportionately impact lower income families in Hawaii.  Your Committees believe that a general excise tax exemption on groceries, feminine hygiene products, incontinence products, and over-the-counter medicines will help make these essential household items more affordable.

 

     Your Committees have amended this measure by:

 

     (1)  Changing its effective date to June 30, 3000, to encourage further discussion; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the records of votes of the members of your Committees on Economic Development and Health & Homelessness that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1050, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1050, H.D. 1, and be referred to your Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committees on Economic Development and Health & Homelessness,

 

 

____________________________

DELLA AU BELATTI, Chair

 

____________________________

DANIEL HOLT, Chair