Bill Text: HI SB2399 | 2024 | Regular Session | Amended

---

Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2024-02-16 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2399 Detail]

Download: Hawaii-2024-SB2399-Amended.html

---

THE SENATE	S.B. NO.	2399
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to taxation.

 

 

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

 

     SECTION 1.  The legislature finds that Hawaii is the most isolated, populated land mass on earth and currently relies on imports for over eighty-five per cent of its food supply.  This reliance is not only costly, but also poses a significant risk of famine in the event of a natural disaster, economic disruption, or other external factors beyond the State's control.

     The legislature also finds that through the adoption of the Sustainable Hawaii Initiative and Aloha+ Challenge, Hawaii is committed to doubling local food production for local consumption by 2030.

     The legislature further finds that providing tax relief to producers of produce will lower food costs, increase sales of produce, and return more profits to farmers and the agricultural industry.

     The purpose of this Act is to help Hawaii achieve its local food production goals by exempting amounts received by farmers for the sale of produce from the general excise tax.

     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 of produce.  (a)  There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter the first $200,000 of the gross proceeds or income received by a farmer for the sale of produce that is intended for human consumption within the State.

     This exemption shall not apply to sales of produce intended for human consumption outside of the State.

     (b)  For the purposes of this section:

     "Farmer" means a person or entity that cultivates the land in the State to grow produce for human consumption.

     "Produce" means any fresh fruit or vegetable grown in the soil or hydroponically, regardless of whether organic, that is sold in the same general condition as when it was harvested."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall apply to gross income or gross proceeds received after December 31, 2023.

 

 

Report Title:

General Excise Tax; Produce; Exemption

 

Description:

Exempts the gross proceeds received after 12/31/2023 by a farmer for the sale of produce from the general excise tax.  (SD1)

 

 

 

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