The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Senate Committee on Health and Human Servoices on Feb. 18, 2026.
_____________
Feb. 18, 2026, 1 p.m.
Hawaii State Capitol
Conference Room 225 and Videoconference
To: Senate Committee on Health and Human Services
Sen. Joy A. San Buenaventura, Chair
Sen. Angus L.K. McKelvey, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY IN SUPPORT OF SB2935 — RELATING TO GENERAL EXCISE TAX EXEMPTIONS
Aloha Chairs, Vice Chairs and other members of the Committees,
The Grassroot Institute of Hawaii supports SB2935, which would establish general excise tax exemptions for qualifying groceries, nonprescription medication, feminine hygiene products and diapers.
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]
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.[4]
If this bill is enacted, nonprescription medicines such as Tylenol and Advil would cost less, making it easier for many individuals suffering from everyday health conditions to find relief and save money.
Likewise, exemptions for necessities such as diapers and feminine hygiene products would help lower household costs for Hawaii residents.
The best action lawmakers could take to reduce the cost of living in Hawaii is to 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
_____________
[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] “Hawaii General Excise & Use Tax Exemptions: Tax Year 2021,” Hawaii Department of Taxation, Nov. 2022, p. 6.
