Bill Text: HI SB2565 | 2018 | Regular Session | Amended
Bill Title: Relating To Tax Exemption.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed - Dead) 2018-03-23 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) C. Lee, Lowen, McDermott, Souki, Tokioka excused (5). [SB2565 Detail]
Download: Hawaii-2018-SB2565-Amended.html
|
THE SENATE |
S.B. NO. |
2565 |
|
TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 2 |
|
|
STATE OF HAWAII |
H.D. 1 |
|
|
|
|
|
|
|
||
|
|
||
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 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 for the previous taxable year, as evidenced by the producer's income tax return for that year, did 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; provided that:
(1) This Act shall apply to taxable years beginning after December 31, 2019; and
(2) This Act shall be repealed on .
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. Applies to taxable years beginning after 12/31/2019. Sunsets on an unspecified date. (SB2565 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
