SB 1278 Hawaii Senate · 2026 Regular Session

RELATING TO THE GENERAL EXCISE TAX.

Summary

Exempts from the state general excise tax any grants received from the federal Restaurant Revitalization Fund by an eligible business pursuant to the American Rescue Plan Act of 2021. Requires the Department of Taxation to notify all taxpayers eligible for refunds of any state general excise tax paid for grants received from the federal Restaurant Revitalization Fund of their eligibility and requires taxpayers to file refund claims no later than six months following notification. Requires any state general excise taxes paid by eligible businesses for Restaurant Revitalization Fund grants to be refunded to the taxpayer. Effective 7/1/3000. Applies retroactively to 3/11/2021. (HD1)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 21, 2025 Last action Dec 8, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

SB1278_HD1 → SB1278_SD1 · 3 edits

MINOR

This bill updates the version of SB 1278 from the House to the Senate, incorporating substantive changes to the effective date and the scope of the tax exemption. The most significant policy change is the extension of the bill's effective date from the placeholder year 3000 to 2050, ensuring the tax exemption and refund provisions remain in force for a much longer period. Additionally, the Senate version removes the requirement for the Department of Taxation to notify taxpayers about their eligibility for refunds, simplifying the process to only require the department to issue refunds.

Scope change

The bill's applicability is extended significantly by changing the effective date from the placeholder year 3000 to 2050, ensuring the tax exemption and refund mechanisms remain active for decades rather than expiring immediately.

TIMELINE

The effective date was changed from July 1, 3000, to July 1, 2050, extending the duration of the tax exemption and refund provisions.

REQUIREMENT

The requirement for the Department of Taxation to notify taxpayers of their eligibility for refunds was removed, leaving only the mandate to process refunds.

TECHNICAL

Minor formatting and text adjustments were made to align the bill with Senate drafting standards and to clarify references to the Restaurant Revitalization Fund Grants.

Floor votes

How they voted

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

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 18, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 1343) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Mar 12, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Holt.

lower

Mar 4, 2025

Committee

Referred to ECD, FIN, referral sheet 18

lower

Feb 27, 2025

Introduced

Received from Senate (Sen. Com. No. 32) in amended form (SD 1).

lower

Feb 27, 2025

Upper · Passed

Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 18, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1).

upper

Feb 12, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on WAM has scheduled a public hearing on 02-12-25 10:00AM; Conference Room 211 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to WAM.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 21, 2025

Introduced

Pending Introduction.

upper

4 primary · 2 co-sponsors