Bill Text: HI HB2462 | 2018 | Regular Session | Introduced
Bill Title: Relating To Tax Exemption.
Spectrum: Strong Partisan Bill (Democrat 21-2)
Status: (Engrossed - Dead) 2018-04-26 - Received notice of discharge of conferees (Hse. Com. No. 681). [HB2462 Detail]
Download: Hawaii-2018-HB2462-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2462 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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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 only an average of $35,000 annually.
The purpose of this Act is to establish a state-wide general excise tax exemption for farm equipment and machinery purchased by 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. (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 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 intended
for sale in the ordinary course of business.
(c) The director of taxation shall adopt rules pursuant to chapter 91 for the purpose of this section, including any time limitation for the exemptions."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2019.
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INTRODUCED BY: |
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Report Title:
General Excise Tax; Exemption; Agriculture; Farm Equipment and Machinery
Description:
Exempts sales of farm equipment and machinery to certain producers of agricultural products from the general excise tax. Takes effect on 7/1/2019.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
