The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Economic Development & Technology on Feb. 11, 2026.
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Feb. 11, 2026, 8:30 a.m.
Hawaii State Capitol
Conference Room 423 and Videoconference
To: House Committee on Economic Development & Technology
Rep. Greggor Ilagan, Chair
Rep. Ikaika Hussey, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY IN SUPPORT OF HB1611 — RELATING TO TAXATION
Aloha Chair, Vice Chair and other Committee members,
The Grassroot Institute of Hawaii supports HB1611, which would gradually phase out the state general excise tax rate for groceries and non-prescription medications by 2034.
This is a practical way to address Hawaii’s high cost of living. Research shows that taxes on groceries contribute to less spending on meals at home[1] and higher food insecurity,[2] so exempting groceries would help make Hawaii more affordable for struggling residents.
Additionally, the state’s GET is regressive, so it hits low- and middle-income individuals and families the hardest.
This proposal also has the potential to grow the economy. In Georgia, for example, the state auditor estimated that Georgia’s sales tax exemption for groceries created more than 5,000 jobs and an additional $807 million in economic output.[3]
During the 2025 legislative session, the Hawaii Department of Taxation submitted testimony on a similar proposal that estimated a GET exemption for groceries could have saved taxpayers $239.5 million in fiscal 2026.[4]
Regarding nonprescription medications and medical equipment and supplies, a GET exemption for these products would simply be in keeping with the logic behind the state’s existing exemption for prescription drugs and prosthetics.[5]
If this bill is enacted, nonprescription medicines such as Tylenol and Advil would also cost less, making it easier for many individuals suffering from everyday health conditions to find relief and save money. DOTAX estimated in its 2025 testimony that exempting nonprescription medicines could have returned $19.4 million to taxpayers in fiscal 2026.
The best thing lawmakers could do to lower the cost of living for Hawaii residents is focus on reducing taxes – and keeping them low. This bill could make a real and immediate difference for the many residents of Hawaii who count every penny and live paycheck to paycheck.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Diansheng Dong and Hayden Stewart, “Food Taxes and Their Impacts on Food Spending,” U.S. Department of Agriculture, Economic Research Service, September 2021, p. 7.
[2] Jianqiang Zhao, “Putting Grocery Food Taxes on the Table: Evidence for Food Security Policy-Makers,” Master’s thesis, Cornell University, August 2020, p. iii.
[3] “Tax Incentive Evaluation: Grocery Sales Tax Exemption,” Georgia Department of Audits and Accounts, Dec. 13, 2022.
[4] Gary Suganuma, “Testimony on S.B. No. 1043, S.D. 1, Relating to Taxation,” Hawaii Department of Taxation, Feb. 27, 2025, p. 2.
[5] “Hawaii General Excise & Use Tax Exemptions: Tax Year 2021,” Hawaii Department of Taxation, Nov. 2022, p. 6.
