Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1264, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to provide that the sale of seedstock for producing agricultural and aquacultural products to a licensed producer or cooperative association, as well as the sale of aquacultural products in general, be considered a wholesale sale for the purposes of the General Excise Tax.

The Hawaii Aquaculture Association and Hawaii Farm Bureau submitted testimony in support of this bill. The Department of Agriculture submitted testimony in support of the intent of this bill. The Department of Taxation and Tax Foundation of Hawaii submitted comments on this bill.

Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1264, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1264, S.D. 2, H.D. 2.