Bill Text: HI HB2462 | 2018 | Regular Session | Amended
Bill Title: Relating To Tax Exemption.
Spectrum: Strong Partisan Bill (Democrat 21-2)
Status: (Engrossed - Dead) 2018-04-26 - Received notice of discharge of conferees (Hse. Com. No. 681). [HB2462 Detail]
Download: Hawaii-2018-HB2462-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2462 |
TWENTY-NINTH LEGISLATURE, 2018 |
H.D. 1 |
|
STATE OF HAWAII |
S.D. 2 |
|
|
|
|
|
||
|
A BILL FOR AN ACT
RELATING TO TAX EXEMPTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that farm equipment and machinery are costly to the average farmer, who typically earns an average of only $35,000 annually.
The purpose of this Act is to establish a statewide general excise tax exemption for the gross proceeds arising from the sale of farm equipment and machinery to certain producers of agricultural products.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemption for purchase of farm equipment and machinery. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds arising from the sale of farm equipment and machinery to a producer; provided that the producer's gross income for the previous taxable year, as evidenced by the producer's income tax return for that year, does not exceed $200,000.
(b) For purposes of this
section, "farm equipment and machinery" means any implement, tool,
machine, equipment, appliance, device, or apparatus used in the conduct of
agricultural operations, except:
(1) Property used
for administration, management, or marketing of an agricultural operation;
(2) Supply items
such as shop towels, cleaning agents such as hand cleaners and solvents, and
agricultural chemicals;
(3) Articles of
clothing, except for clothing designed to protect an agricultural product or
that is required by law when applying chemicals; and
(4) Items purchased
for the purpose of resale.
(c) The director of taxation shall adopt rules pursuant to chapter 91 for the purpose of this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
General Excise Tax; Exemption; Agriculture; Farm Equipment and Machinery
Description:
Exempts gross proceeds arising from sales of farm equipment and machinery to certain producers of agricultural products from the general excise tax. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.