Bill to reduce taxes on groceries, nonprescription drugs in Hawaiʻi dies in committee

Hawaiʻi Appleseed Center for Law and Economic Justice provided written testimony stating Hawaiʻi is one of only seven states that taxes groceries.

The general exercise tax and sales taxes in general are widely regarded as regressive and unfair to low-income families, the testimony said.

In Hawaiʻi, the bottom fifth of households spend nearly 9 percent of their annual income on the GET, compared with the top fifth of households that spend less than 4 percent.

“In Hawaiʻi, where a family of four needs roughly $110,000 annually to meet basic needs, it is critical these changes reduce the burden on low-income households who are least able to absorb the state’s high cost of living,” the Hawaiʻi Appleseed Center said.