Bill Text: HI HB1598 | 2011 | Regular Session | Amended
Bill Title: Cacao
Spectrum: Moderate Partisan Bill (Democrat 13-4)
Status: (Engrossed - Dead) 2011-03-17 - (S) The committee on AGL deferred the measure. [HB1598 Detail]
Download: Hawaii-2011-HB1598-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1598 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE CACAO INDUSTRY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that although the cacao industry in Hawaii is in its infancy stage with fewer than thirty growers and a total acreage of approximately fifty acres, this industry still holds great promise. The University of Hawaii college of tropical agriculture and human resources has conducted series of meetings, including the one-day workshop entitled "Future of Cacao in Hawaii" held on October 23, 2008, involving key stakeholders in the local cacao industry and representatives statewide to strategize on methods for positioning Hawaii in the growing cacao market. Estimates by the University of Hawaii place the potential growth of cacao acreage in Hawaii from three hundred fifteen acres up to a high of three thousand acres.
The legislature also finds that although some progress has been made in promoting Hawaii-grown cacao, additional effort is needed to accelerate the growth of the cacao industry, increase the manufacture and supply of locally grown cacao, and promote its use and products.
The legislature further finds that the department of agriculture submitted its findings to the legislature on how to expedite the production and delivery of Hawaii-grown cacao to the marketplace in December 2009, and that the report clearly showed the growth potential and profitability of this niche diversified agriculture industry.
The purpose of this Act is to adopt some of the recommendations of the December 2009 report, "A Report to Expedite the Production and Delivery of Hawaii Cacao to the Marketplace".
SECTION 2. Section 237-24, Hawaii Revised Statutes, is amended to read as follows:
"§237-24 Amounts not taxable. This chapter shall not apply to the following amounts:
(1) Amounts received under life insurance policies and contracts paid by reason of the death of the insured;
(2) Amounts received (other than amounts paid by reason of death of the insured) under life insurance, endowment, or annuity contracts, either during the term or at maturity or upon surrender of the contract;
(3) Amounts received under any accident insurance or health insurance policy or contract or under workers' compensation acts or employers' liability acts, as compensation for personal injuries, death, or sickness, including also the amount of any damages or other compensation received, whether as a result of action or by private agreement between the parties on account of the personal injuries, death, or sickness;
(4) The value of all property of every kind and sort acquired by gift, bequest, or devise, and the value of all property acquired by descent or inheritance;
(5) Amounts received by any person as compensatory damages for any tort injury to the person, or to the person's character reputation, or received as compensatory damages for any tort injury to or destruction of property, whether as the result of action or by private agreement between the parties (provided that amounts received as punitive damages for tort injury or breach of contract injury shall be included in gross income);
(6) Amounts received as salaries or wages for services rendered by an employee to an employer;
(7) Amounts received as alimony and other similar payments and settlements;
(8) Amounts collected by distributors as fuel taxes on "liquid fuel" imposed by chapter 243, and the amounts collected by such distributors as a fuel tax imposed by any Act of the Congress of the United States;
(9) Taxes on liquor imposed by chapter 244D on dealers holding permits under that chapter;
(10) The amounts of taxes on cigarettes and tobacco products imposed by chapter 245 on wholesalers or dealers holding licenses under that chapter and selling the products at wholesale;
(11) Federal excise taxes imposed on articles sold at retail and collected from the purchasers thereof and paid to the federal government by the retailer;
(12) The amounts of federal taxes under chapter 37 of the Internal Revenue Code, or similar federal taxes, imposed on sugar manufactured in the State, paid by the manufacturer to the federal government;
(13) An amount up to, but not in excess of, $2,000 a year of gross income received by any blind, deaf, or totally disabled person engaging, or continuing, in any business, trade, activity, occupation, or calling within the State; a corporation all of whose outstanding shares are owned by an individual or individuals who are blind, deaf, or totally disabled; a general, limited, or limited liability partnership, all of whose partners are blind, deaf, or totally disabled; or a limited liability company, all of whose members are blind, deaf, or totally disabled;
(14) Amounts received by a producer of sugarcane from the manufacturer to whom the producer sells the sugarcane, where:
(A) The producer is an independent cane farmer, so classed by the Secretary of Agriculture under the Sugar Act of 1948 (61 Stat. 922, Chapter 519) as the Act may be amended or supplemented;
(B) The value or gross proceeds of the sale of the sugar, and other products manufactured from the sugarcane, are included in the measure of the tax levied on the manufacturer under section 237-13(1) or (2);
(C) The producer's gross proceeds of sales are dependent upon the actual value of the products manufactured therefrom or the average value of all similar products manufactured by the manufacturer; and
(D) The producer's gross proceeds of sales are reduced by reason of the tax on the value or sale of the manufactured products;
(15) Money paid by the State or eleemosynary child-placing organizations to foster parents for their care of children in foster homes;
(16) Amounts received by a cooperative housing corporation from its shareholders in reimbursement of funds paid by the corporation for lease rental, real property taxes, and other expenses of operating and maintaining the cooperative land and improvements; provided that the cooperative corporation is a corporation:
(A) Having one and only one class of stock outstanding;
(B) Each of the stockholders of which is entitled solely by reason of the stockholder's ownership of stock in the corporation, to occupy for dwelling purposes a house, or an apartment in a building owned or leased by the corporation; and
(C) No stockholder of which is entitled
(either conditionally or unconditionally) to receive any distribution not out
of earnings and profits of the corporation except in a complete or partial
liquidation of the corporation; [and]
(17) Amounts received by a managed care support
contractor of the TRICARE program that is established under Title 10 United
States Code chapter 55, as amended, for the actual cost or advancement to third
party health care providers pursuant to a contract with the United States[.];
and
(18) Amounts received for the sale of cacao from a producer or processed cacao from a processor."
SECTION 3. The department of agriculture shall collaborate with the department of business, economic development, and tourism and the department of land and natural resources to determine the best locations for a cacao processing facility with a processing capacity of ten thousand to fifteen thousand pounds of cacao beans per annum on Oahu. The department of agriculture shall transmit its findings and recommendations to the legislature no later than twenty days prior to the convening of the 2012 regular session.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that this Act shall apply to gross income or gross proceeds received after December 31, 2012, and before January 1, 2018.
Report Title:
Cacao
Description:
Temporarily exempting from the general excise tax (GET) amounts received for the sale of cacao from a producer or processed cacao from a processor. Requires the Department of Agriculture to collaborate with other state agencies to determine the best locations for a cacao processing facility. (HB1598 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
