STAND. COM. REP. NO. 1015
Honolulu, Hawaii
, 2007
RE: H.B. No. 1639
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fourth State Legislature
Regular Session of 2007
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 1639, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO IMPORTANT AGRICULTURAL LANDS,"
begs leave to report as follows:
The purpose of this bill is to encourage owners of qualifying agricultural lands to have their lands designated as important agricultural lands (IALs) by providing tax benefits for owners who lease their IALs. Specifically this bill:
(1) Excludes rental income derived from qualifying agricultural leases on lands identified and designated as IALs from gross income, adjusted gross income, and taxable income, under the income tax law;
(2) Exempts rental income derived from qualifying agricultural leases on lands identified and designated as IALs from the general excise tax; and
(3) Appropriates funds for the Department of Agriculture (DOA) to assess the impact of the income tax exclusion of rental income derived from IALs provided for in this bill and requires DOA to submit an annual report regarding the assessment.
DOA supported this bill. The Department of Taxation and the Tax Foundation of Hawaii submitted comments.
Your Committee has amended this measure by:
(1) Changing its effective date to July 1, 2020, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for style,
clarity, and consistency.
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 H.B. No. 1639, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1639, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ MARCUS R. OSHIRO, Chair |
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