SB 2784 Hawaii Senate · 2026 Regular Session

RELATING TO TAXATION.

Summary

For taxable years beginning after 12/31/2026, 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 to establish a position in the Department of Taxation. Effective 7/1/2050. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Feb 17, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2784 → SB2784_SD1 · 5 edits

MODERATE

The bill was updated from a draft version to a Senate committee revision (SD1) that significantly expanded the scope of tax exemptions and clarified definitions. The revision adds new categories of wholesale sales, such as those involving leasing companies and specific agricultural inputs, and updates the definition of 'amusement' to exclude certain entertainment contexts. It also corrects the effective date of the new tax provisions from 2050 to 2027, aligning the law with the fiscal year it is intended to address.

Scope change

The bill's scope was broadened to include additional wholesale transactions that were previously not explicitly exempt, and the applicability of the new tax on rental car purchases was clarified regarding leasing companies.

DEFINITION

Added a specific definition for 'amusement' in the context of amusement-to-service transactions to clarify that entertainment provided as part of a show with an admission charge is included, while other contexts may differ.

ELIGIBILITY

Expanded the list of wholesale sales exemptions to include sales to licensed leasing companies of capital goods and sales of specific agricultural commodities like seedstock and poultry feed.

TIMELINE

Corrected the effective date for the new tax provisions from July 1, 2050, to January 1, 2027, ensuring the law applies to the current fiscal cycle.

REQUIREMENT

Added a new exemption for sales of bulk condiments and prepackaged single-serving packets provided to customers by retailers.

Included a new exemption for sales by printers to publishers of magazines containing advertisements under specific distribution contracts.

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

Feb 17, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 17, 2026

Committee

Reported from CPN/HWN (Stand. Com. Rep. No. 2275) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 6, 2026

Upper · Passed

The committee(s) on HWN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HWN were as follows: 5 Aye(s): Senator(s) Richards, Ihara, Keohokalole, DeCorte; Aye(s) with reservations: Senator(s) Lamosao ; 0 No(es): none; and 0 Excused: none.

upper

Feb 6, 2026

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Awa; Aye(s) with reservations: Senator(s) Fukunaga, Lamosao, McKelvey ; 0 No(es): none; and 0 Excused: none.

upper

Jan 30, 2026

Upper · Passed

The committee(s) on CPN/HWN has scheduled a public hearing on 02-06-26 9:30AM; CR 229 & Videoconference.

upper

Jan 30, 2026

Committee

Referred to CPN/HWN, WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

1 primary · 0 co-sponsors