HB 1085 Hawaii House · 2025 Regular Session

RELATING TO TAXATION.

Summary

Increases the tax rates for cigarettes and little cigars beginning 1/1/2026, amends the disposition of tax revenues to certain non-general funds starting from fiscal year 2026-2027, with the excess carrying over to the general fund, and expands the disposition of tax revenues to the non-general funds to include all tobacco product taxes. Repeals obsolete historical tax rates. Effective 7/1/3000. (HD2)

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 12, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

HB1085_HD1 → HB1085_HD2 · 5 edits

MODERATE

This bill updates Hawaii's cigarette and tobacco tax rates, modernizes the tax structure to include new product categories like electronic smoking devices and e-liquids, and reorganizes how tax revenue is distributed to state special funds. The changes also extend the effective date to July 1, 3000, which appears to be a placeholder or error in the draft.

Scope change

The bill expands the scope of taxable items to include electronic smoking devices and e-liquids, and adjusts tax rates for cigarettes and little cigars effective January 1, 2026.

TIMELINE

The effective date of the Act was changed from an unspecified date to July 1, 3000, which is likely a placeholder or drafting error.

Historical tax rate provisions were updated to reflect current and future tax rates for cigarettes and little cigars.

FISCAL

Tax revenue distribution to special funds (cancer research, trauma system, community health centers, and emergency medical services) was updated with new percentages and fiscal year caps starting in 2026.

The disposition of tax revenues was restructured to include specific allocation percentages for various special funds based on different tax periods and product types.

SCOPE

New tax categories were added for electronic smoking devices and e-liquids, subject to a 70% wholesale price tax starting January 1, 2024.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 12, 2025

Committee

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Sayama, Ward excused (3).

lower

Feb 12, 2025

Committee

Reported from HED (Stand. Com. Rep. No. 471) as amended in HD 2, recommending referral to FIN.

lower

Feb 7, 2025

Lower · Passed

The committee on HED recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Garrett, Amato, Kapela, Kila, La Chica, Olds, Sayama, Woodson, Souza; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Evslin, Muraoka.

lower

Feb 4, 2025

Committee

Reported from HLT (Stand. Com. Rep. No. 67) as amended in HD 1, recommending passage on Second Reading and referral to HED.

lower

Jan 31, 2025

Lower · Passed

The committee on HLT recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Takayama, Keohokapu-Lee Loy, Amato, Chun, Marten, Olds, Takenouchi, Alcos, Garcia; Ayes with reservations: none; Noes: none; and Excused: none.

lower

Jan 28, 2025

Committee

Re-referred to HLT, HED, FIN, referral sheet 7

lower

Jan 23, 2025

Committee

Referred to HLT, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors