STAND. COM. REP. NO. 436-04
Honolulu, Hawaii
, 2004
RE: H.B. No. 2848
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Agriculture, to which was referred H.B. No. 2848 entitled:
"A BILL FOR AN ACT RELATING TO COMMERCIAL ANIMAL FEED,"
begs leave to report as follows:
The purpose of this bill is to provide:
(1) A general excise tax (GET) exemption for amounts received from the sale of commercial feed that is grown or harvested in Hawaii; and
(2) A GET and use tax exemption for the purchase of equipment to grow, maintain, or harvest plants used for commercial animal feeds.
The Hawaii Cattlemen's Council, Pacific Dairy, and two concerned individuals testified in support of this bill. The Department of Agriculture supported the intent of this bill. The Department of Taxation opposed this bill.
Your Committee finds that the rising cost of imported animal feed has negatively impacted Hawaii's livestock industry, which has been in decline for many years. Your Committee is fully cognizant of the concerns that the potential loss of revenue that tax credits pose. However, your Committee also believes that this bill will provide the necessary incentives for the long-term growth and expansion of Hawaii's cattle industry.
Upon careful consideration, your Committee has amended this bill by:
(1) Providing a refundable tax credit of up to $5,000 per taxable year beginning after December 31, 2003, for growers of commercial animal feed equal to 3% of the costs related to growing or cultivating commercial animal feed consumed in this State;
(2) Providing a GET and use tax credit for the sale of equipment related to growing, maintaining, or harvesting plants used for commercial animal feeds;
(3) Deleting the GET exemption for animal feed grown in Hawaii;
(4) Defining "animal feed";
(5) Inserting a sunset date of December 31, 2008; and
(6) Making technical, nonsubstantive changes for clarity and style.
As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2848, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2848, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Agriculture,
|
____________________________ FELIPE P. ABINSAY, JR., Chair |
||