STAND. COM. REP. NO. 954
RE: S.B. No. 478
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 478, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO FARMS,"
begs leave to report as follows:
The purpose and intent of this measure is to create an exclusion from the income tax for the lesser of a specified percentage or an amount of gross annual income earned by a farmer from farming activities.
Your Committee received written comments in support of this measure from the Department of Agriculture, Hawaii Farm Bureau, Hawaii Food Industry Association, Ulupono Initiative, and one individual.
The Department of Taxation and Tax Foundation of Hawaii submitted written comments on the measure.
Your Committee finds that the need to address the State's imbalance in agricultural trade and significantly expand food production warrants the creation of this tax relief measure.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and
(2) Making technical nonsubstantive amendments for 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 S.B. No. 478, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 478, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair