Bill Text: HI HB2462 | 2018 | Regular Session | Amended


Bill Title: Relating To Tax Exemption.

Spectrum: Strong Partisan Bill (Democrat 21-2)

Status: (Engrossed) 2018-04-26 - Received notice of discharge of conferees (Hse. Com. No. 681). [HB2462 Detail]

Download: Hawaii-2018-HB2462-Amended.html

HOUSE OF REPRESENTATIVES

H.B. NO.

2462

TWENTY-NINTH LEGISLATURE, 2018

H.D. 1

STATE OF HAWAII

S.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAX EXEMPTION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that farm equipment and machinery are costly to the average farmer, who typically earns an average of only $35,000 annually.

     The purpose of this Act is to establish a statewide general excise tax exemption for the gross proceeds arising from the sale of farm equipment and machinery to certain producers of agricultural products.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-     Exemption for purchase of farm equipment and machinery.  (a)  There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds arising from the sale of farm equipment and machinery to a producer; provided that the producer's gross income for the previous taxable year, as evidenced by the producer's income tax return for that year, does not exceed $200,000.

     (b)  For purposes of this section, "farm equipment and machinery" means any implement, tool, machine, equipment, appliance, device, or apparatus used in the conduct of agricultural operations, except:

     (1)  Property used for administration, management, or marketing of an agricultural operation;

     (2)  Supply items such as shop towels, cleaning agents such as hand cleaners and solvents, and agricultural chemicals;

     (3)  Articles of clothing, except for clothing designed to protect an agricultural product or that is required by law when applying chemicals; and

     (4)  Items purchased for the purpose of resale.

     (c)  The director of taxation shall adopt rules pursuant to chapter 91 for the purpose of this section."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

General Excise Tax; Exemption; Agriculture; Farm Equipment and Machinery

 

Description:

Exempts gross proceeds arising from sales of farm equipment and machinery to certain producers of agricultural products from the general excise tax.  Effective 7/1/2050.  (SD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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