STAND. COM. REP. NO.  42

 

Honolulu, Hawaii

                , 2023

 

RE:   H.B. No. 284

      H.D. 1

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 284 entitled:

 

"A BILL FOR AN ACT RELATING TO TARO,"

 

begs leave to report as follows:

 

     The purpose of this measure is to temporarily exempt from the general excise tax all of the gross proceeds or income received from the sale of any product resulting from the cultivation and production of unprocessed taro or of any value-added product of which the primary ingredient is taro or taro leaf.

 

     Your Committee received testimony in support of this measure from the Department of Agriculture, Hawai‘i Farm Bureau, Hawai‘i Alliance for Progressive Action, Hawai‘i Farmers Union United, Hawai‘i SEED, Malama Kaua‘i, and twelve individuals.  Your Committee received comments on this measure from the Office of Hawaiian Affairs, Department of Taxation, and Tax Foundation of Hawaii.

 

     Your Committee finds that the general excise tax can be a significant burden for farmers, especially for those growing crops like taro that have limited markets and thin margins.  This exemption would provide much-needed financial relief for taro farmers and help to ensure that this important cultural crop remains viable.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting definitions for the terms "big-box store" and "supermarket"; 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 & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 284, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 284, H.D. 1, and be referred to your Committee on Economic Development.

 

 

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

 

 

 

 

____________________________

CEDRIC ASUEGA GATES, Chair