STAND. COM. REP. NO. 948

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 728

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Agriculture and Environment, to which was referred H.B. No. 728, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to expand the general excise tax exemption for amounts received from the inter-island loading, transportation, and unloading of agricultural products to include floricultural, horticultural, viticultural, forestry, nut, coffee, dairy, livestock, poultry, bee, animal, and any other farm, agronomic, or plantation products.

 

     Your Committee received testimony in support of this measure from the Department of Agriculture; Hawaii Crop Improvement Association; Hawaii Cattlemen's Council, Inc.; Ulupono Initiative; Maui Chamber of Commerce; Hawaii Farm Bureau; Maui County Farm Bureau; Maui Cattle Company; The Maritime Group, LLC; Ponoholo Ranch, Limited; McCandless Ranch; Hawaii Beef Producers LLC; Hawaii Farmers and Ranchers United; and seventeen individuals.  Your Committee received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Meadow Gold Dairies.

 

     Your Committee finds that Hawaii's many agricultural industries, particularly its livestock industry, face numerous challenges.  This measure seeks to assist Hawaii's agricultural industries to reduce operating costs, and eventually reduce the cost of purchasing local agricultural products by local consumers, to ensure the sustainability of Hawaii's agricultural industries.

 

     Your Committee has amended this measure by:

 

     (1)  Making the general excise tax exemption applicable to taxable years beginning after December 31, 2017;

 

     (2)  Making it effective on July 1, 2017; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 728, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 728, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

 

 

 

________________________________

MIKE GABBARD, Chair