HB 2575 Hawaii House · 2026 Regular Session

RELATING TO TAXATION.

Summary

Applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies. Appropriates funds for a position in the Department of Taxation. Effective 7/1/3000. (HD1)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Jan 28, 2026 Last action Mar 25, 2026

Maddy AI version diff · 1 comparison

What changed between versions

HB2575 → HB2575_HD1 · 4 edits

MODERATE

This bill was updated from its original version (HB2575) to the House of Representatives' first reading version (HB2575 HD1), introducing significant substantive changes to Hawaii's tax code. The most critical change is the effective date, which was moved from July 1, 2026, to July 1, 3000, effectively deferring the implementation of new tax provisions indefinitely. Additionally, the bill now explicitly appropriates funds for a new tax inspector position specifically tasked with enforcing taxes on contractors working on federal projects within the state.

Scope change

The bill's scope was expanded to explicitly target contractors performing work on federal contracts within Hawaii, requiring them to pay general excise tax on their purchases. The applicability of these new tax rules was drastically altered by changing the effective date to the year 3000.

TIMELINE

The effective date of the Act was changed from July 1, 2026, to July 1, 3000, delaying the enforcement of new tax requirements indefinitely.

FISCAL

The appropriation for a new tax inspector position was updated to specify that the role is for identifying, monitoring, and collecting taxes from contractors awarded federal contracts.

ENFORCEMENT

The bill now explicitly mandates that a new tax inspector position be created to enforce tax collection on contractors working on federal projects in the state.

TECHNICAL

Various formatting and stylistic updates were made, including changing the bill title to 'HD1', updating author names, and adjusting section headers to reflect standard legislative markup practices.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 19, 2026

Upper · Passed

The committee(s) on CPN/EDT has scheduled a public hearing on 03-25-26 9:40AM; Conference Room 229 & Videoconference.

upper

Mar 10, 2026

Committee

Referred to CPN/EDT, WAM.

upper

Mar 10, 2026

Introduced

Received from House (Hse. Com. No. 222).

upper

Mar 6, 2026

Lower · Passed

Passed Third Reading with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Alcos, Garcia, Gedeon, Matsumoto, Muraoka, Pierick, Shimizu voting no (7) and Representative(s) Perruso, Quinlan, Sayama excused (3). Transmitted to Senate.

lower

Mar 3, 2026

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hussey, Kitagawa, Kusch, Miyake, Perruso, Templo, Yamashita; Ayes with reservations: Representative(s) Hartsfield, Keohokapu-Lee Loy, Lee, M., Morikawa, Alcos, Reyes Oda; 1 Noes: Representative(s) Gedeon; and Excused: none.

lower

Feb 19, 2026

Lower · Passed

Report adopted; referred to the committee(s) on FIN with Representative(s) Shimizu voting aye with reservations; Representative(s) Alcos, Garcia, Gedeon, Matsumoto, Muraoka, Pierick, Reyes Oda voting no (7) and none excused (0).

lower

Feb 19, 2026

Committee

Reported from ECD (Stand. Com. Rep. No. 515-26), recommending referral to FIN.

lower

Feb 18, 2026

Lower · Passed

The committee on ECD recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita; Ayes with reservations: Representative(s) Gedeon; Noes: none; and Excused: none.

lower

Feb 12, 2026

Committee

Reported from TRN (Stand. Com. Rep. No. 215-26) as amended in HD 1, recommending passage on Second Reading and referral to ECD.

lower

Feb 10, 2026

Lower · Passed

The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Kila, Miyake, Evslin, Grandinetti, Kitagawa, La Chica; Ayes with reservations: Representative(s) Cochran; 2 Noes: Representative(s) Muraoka, Pierick; and 0 Excused: none.

lower

Feb 2, 2026

Committee

Referred to TRN, ECD, FIN, referral sheet 6

lower

Jan 28, 2026

Introduced

Introduced and Pass First Reading.

lower

6 primary · 0 co-sponsors