Info session on General Excise Tax exemption in Hawaii with the Department of Taxation

The Department of Taxation presents an informational session on the new General Excise Tax (GET) exemption created by Act 47 (S.B. 1035), which excludes amounts received for healthcare‑related goods and services purchased under Medicare, Medicaid, or TRICARE from GET beginning January 1, 2026. The session will explain the statutory change, the types of payments and services that qualify for the exemption, and the policy rationale behind the amendment—namely, to address inconsistencies in how medical services are taxed across different provider settings and to reduce the tax burden on providers who receive government program payments.

This update is directly relevant to medical school faculty, clinic administrators, billing and compliance staff, researchers who bill clinical services, and affiliated practice managers. The Department of Taxation’s guidance clarifies which providers are eligible, how patient payments (including deductibles, copayments, and coinsurance) are treated when the underlying service is covered by Medicare, Medicaid, or TRICARE, and the reporting requirements that apply to exempt receipts (including use of Form G‑45, Form G‑49, and Schedule GE with the designated exemption/deduction code).

To help you prepare, we have attached the full text of Act 47 and the Department of Taxation’s Tax Information Release No. 2025‑02, and included a short overview video from the Department that summarizes the exemption and practical next steps for providers: