STAND. COM. REP. NO.  123

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 503

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 503 entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this measure is to provide a General Excise Tax exemption on amounts received by farmers for the sale of fresh farm produce intended for consumption within the State.

The Hawaii Aquaculture & Aquaponics Association and two individuals testified in support of this measure.  The Department of Agriculture testified in support of the intent of this measure.  The Department of Taxation, the Department of the Attorney General, and the Tax Foundation of Hawaii provided comments on this measure.

     Your Committee amended this measure by:

     (1)  Changing the effective date of the exemption to apply to gross income or gross proceeds received after December 31, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, 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. 503, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 503, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

JESSICA WOOLEY, Chair