STAND. COM. REP. NO. 3584

Honolulu, Hawaii

RE: H.B. No. 2462

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2462, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX EXEMPTION,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a general excise tax exemption for the gross proceeds arising from the sale of farm equipment and machinery to certain producers of agricultural products.

Your Committee received written comments in support of this measure from the Department of Agriculture, Hawaii Aquaculture & Aquaponics Association, Hawaii Cattlemens Council, Hawaii Farm Bureau Federation, Land Use Research Foundation of Hawaii, Maui County Farm Bureau, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, and a number of individuals.

Your Committee received written comments on this measure from the Department of Taxation.

Your Committee finds that this measure will provide tax relief to certain farmers from the overall costs of purchasing farm equipment and machinery.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive changes for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2462, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2462, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair