Report Title:

General Excise Tax; Exemption

Description:

Exempts essential foods, rice and poi, from the general excise tax.

THE SENATE	S.B. NO.	1824
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  It was announced during the governor's 2007 state of the State address, that the governor will seek elimination of the general excise tax on essential foods, all of which have been qualified as essential by the United States department of agriculture under the special supplemental nutrition program for women, infants, and children.  The essential foods designated by the department of agriculture include:  milk, eggs, cheese, canned salmon, canned tuna, carrots, peanut butter, juices, cereals, beans, peas, and lentils, as well as infant formula and cereal.

     While the legislature recognizes the positive intentions of the governor, the legislature finds that staple foods in local culture, rice and poi, should be exempt from the general excise tax.

     The purpose of this Act is to create an exemption for the essential foods of rice and poi, from the general excise tax.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-   Additional exemption for essential food products. (a)  In addition to the amounts not taxable under section 237‑24, this chapter shall not apply to essential food products.

(b)  As used in this section, "essential food products" means rice and poi."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2007.

INTRODUCED BY:

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