The excise food tax exemption has reportedly been vetoed by the legislature of Hawaii. Fortunately, the other income tax relief proposals are still in discussion for the 2023 session.The proposal for excise food tax exemption has been vetoed by the legislature of Hawaii. Reports say the state of Hawaii has a 4.5% excise tax on food, medicine, and medical services. Fortunately, there are millions of dollars in income tax relief proposals still in discussion for the 2023 session.
According to Huff, the excise food tax exemption for food, medicine, and medical services has been a big part of Hawaii Governor Josh Green’s campaign. However, when the state’s legislators opposed it, Green, fortunately, agreed that a tax relief for employees and low-income earners is a better option than a general tax break.
Vetoing the Excise Food Tax Exemption
According to Bodon, the excise food tax exemption was vetoed without reaching either the House or Senate committees. Unfortunately, without being heard, the proposal cannot receive votes in both houses. Fortunately, there are still several tax relief proposals with almost a $3 billion budget surplus which are all involved in Hawaii’s income tax system.
Reports say families in Hawaii who have migrated and earn a lower income often have too many taxes withheld from their paychecks. Because of this, they must explore the state’s complicated income tax system to be able to receive the full amount of tax refunds. However, since the excise food tax exemption was vetoed, legislators are considering tax relief proposals that offer more tax credits, higher tax deductions, and tax brackets climbing up the income ladder.