SB 1124 Hawaii Senate · 2025 Regular Session

RELATING TO TRANSPORTATION.

Summary

Establishes the retail delivery safety fee of 50 cents to be imposed on a retailer for each transaction involving a non-food item retail delivery in the State. Allows the retailer to transfer the fee to the purchaser. Creates certain exemptions. Requires the Director of Taxation to deposit the collected fees into the Safe Routes to School Program Special Fund. Allows the Director of Taxation to deposit collected fees that cover the administration of the retail delivery safety fee into the state general fund. Effective 7/1/2050. (SD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 17, 2025 Last action Feb 14, 2025

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What changed between versions

SB1124 → SB1124_SD1 · 7 edits

MODERATE

This bill introduces a new 50-cent fee on retail delivery transactions for non-food items to fund safety upgrades in neighborhoods where large delivery trucks pose risks to pedestrians and children. The fee is collected by retailers, can be passed to consumers, and must be reported to the state tax department. Collected funds are deposited into the Safe Routes to School Special Fund, with some administrative costs allowed to go to the general fund.

Scope change

The bill adds a new chapter to the Hawaii Revised Statutes establishing a previously non-existent retail delivery safety fee, expanding the state's regulatory framework to address delivery vehicle safety in residential areas.

REQUIREMENT

Establishes a mandatory 50-cent fee on each retail delivery transaction involving non-food items, including clothing and taxable personal property, but excluding food, prepared food, drugs, and medical devices.

Requires retailers to separately state the fee on receipts and invoices, allowing the fee to be excluded from the sales price for sales tax purposes.

FISCAL

Requires fee proceeds to be deposited into the Safe Routes to School Special Fund to finance safety projects protecting students and families from delivery vehicles.

DEFINITION

Defines key terms including 'retail delivery,' 'retailer,' 'marketplace facilitator,' and 'prepared food' to clarify which transactions are subject to the fee.

EXEMPTIONS

Creates exemptions for food and beverage deliveries, drugs and medical devices, and deliveries from food service establishments.

ENFORCEMENT

Mandates that retailers report and remit the fee using existing tax filing cycles under chapter 237, with audit and enforcement provisions applying by reference to existing tax laws.

TIMELINE

Sets the effective date for the fee as July 1, 2050, while allowing the fee to apply to taxable years beginning after December 21, 2025.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from TCA (Stand. Com. Rep. No. 610) with recommendation of passage on Second Reading, as amended (SD 1) and referral to CPN/WAM.

upper

Feb 6, 2025

Upper · Passed

The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in TCA were as follows: 4 Aye(s): Senator(s) Lee, C., Elefante, Kanuha, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Inouye.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on TCA has scheduled a public hearing on 02-04-25 3:00PM; Conference Room 224 & Videoconference.

upper

Jan 23, 2025

Committee

Referred to TCA, CPN/WAM.

upper

Jan 17, 2025

Introduced

Introduced.

upper

1 primary · 0 co-sponsors