Bill Text: HI HB855 | 2024 | Regular Session | Amended
Bill Title: Relating To General Excise Tax Exemptions.
Spectrum: Partisan Bill (Democrat 17-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB855 Detail]
Download: Hawaii-2024-HB855-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
855 |
|
THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO GENERAL EXCISE TAX EXEMPTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The
legislature finds that Hawaii has the highest cost of living in the nation. The general excise tax is levied on nearly
every economic activity, which, due to the highly regressive structure of the
tax, disproportionately affects low-income and middle-class families. This regressive nature makes it difficult for
some families to afford basic life necessities, such as diapers. Diapers are a large expense for Hawaii families with
small children and are essential to babies' and toddlers' health as they each
require about fifty diaper changes per week, or roughly two hundred diaper
changes per month. However, according to
the National Diaper Bank Network, one in three families struggles to afford
clean diapers for their children.
Hawaii children who come
from low-income families are at-risk to meet their diaper needs. According to the National Diaper Bank Facts on
Hawaii, fifteen per cent of Hawaii families are recipients of supplemental
nutrition assistance program benefits with children under the age of five;
twenty-three per cent of Hawaii families are women, infants, and children
program benefit recipients with infant children; and thirty-eight per cent of
Hawaii families receive temporary assistance for needy families benefits with
at least one child under the age of three. The maximum amount a family of one parent and
two children can receive in temporary assistance for needy families benefits is
$610. It is estimated that thirteen per
cent of this maximum benefit goes toward diaper needs. Additionally, thirty-one per cent of Hawaii
families have births covered by medicaid. This data shows that there is a significant
number of families who are at risk of not having enough financial resources to
provide necessities, such as diapers, for their children.
The legislature further finds that many child care facilities
require parents to provide diapers for their children. Families who do not have access to clean
diapers cannot access child care and often miss work, reducing their monthly
income. Hawaii currently has two
National Diaper Bank Network member diaper banks that provide diapers to
families; however, this does not meet the needs of all families who struggle to
provide clean diapers for their children.
According to the National Diaper Bank, Hawaii families spend an average
monthly cost of $80 on diapers. According to the American Academy of
Pediatrics, families may spend up to $1,000 during the first year of a child's
life, which does not include the costs of diaper wipes, diaper creams, and
other diapering items.
The legislature also
finds that dirty diapers put healthy children at risk of various diseases due
to parasites, bacteria, and viruses linked to dirty diapers. Dirty diapers can cause diaper rash or diaper
dermatitis, including Candida, a type of yeast infection, and Seborrhea,
a type of infectious skin condition caused when skin is exposed to moisture,
friction, urine, stool, or other skin irritants. Other germs found in dirty diapers are
salmonella, listeria, and norovirus, which can cause a healthy child to quickly
fall ill. Hepatitis A is the most common
viral infection found in dirty diapers, which can lead to other
hepatitis-related infections, according to the American Academy of Pediatrics. The American Academy of Pediatrics also notes
that certain diaper dermatitis can lead to bladder infections that can cause
urinary tract infections, which more commonly affect girls.
The legislature
notes that there are several other states that exempt diapers from sales or
excise taxes, while Hawaii does not. The
legislature believes that Hawaii should follow the lead of these states by
exempting diaper products from the general excise tax.
Accordingly, the purpose
of this Act is to help alleviate the general excise tax burden on local
families and individuals by establishing a general excise tax exemption for the
gross proceeds or income from the manufacture, production, packaging, and sale of
diapers in the State.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemption
for diapers. (a)
There shall be exempted from, and excluded from the measure of, the
taxes imposed by this chapter all the gross proceeds or income arising from the
manufacture, production, packaging, and sale of diapers within the State.
(b) As
used in this section, "diaper" means an absorbent garment that:
(1) Is washable or
disposable that may be worn by an infant or toddler who is not toilet-trained;
and
(2) If
disposable:
(A) Does
not use any latex or common allergens; and
(B) Meets
or exceeds the quality standards for diapers commercially available through
retail sale in the following categories:
(i) Absorbency
(with acceptable rates for first and second wetting);
(ii) Waterproof
outer cover;
(iii) Flexible
leg openings; and
(iv) Refastening closures."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on June 30, 3000.
Report Title:
General Excise Tax Exemption; Diapers
Description:
Establishes a general excise tax exemption for the gross proceeds or income from the manufacture, production, packaging, and sale of diapers. Effective 6/30/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
