STAND. COM. REP. NO. 845

Honolulu, Hawaii

, 2019

RE: H.B. No. 616

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 616, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to promote the growth and sustainability of the State's agricultural industry by creating an exemption from the general excise tax for locally grown produce and livestock products.

The Department of Agriculture, Councilmember representing District 9 of the Hawai‘i County Council, Ulupono Initiative, Hawai‘i Farm Bureau, Hawaii Food Industry Association, Hawaii Cattlemen's Council, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Honolulu County Republican Party, Maui Chamber of Commerce, and a few individuals submitted testimony in support of this measure. The Department of Taxation, Department of the Attorney General, Tax Foundation of Hawaii, and We Are One, Inc. offered comments on this measure.

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. 616, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair