Bill > HB1149

This bill repeals two specific general excise tax exemptions in Hawaii: one for independent sugar cane farmers and another for contractors of the Patient-Centered Community Care (PC3) program operated by the U.S. Department of Veterans Affairs. Specifically, the bill removes a previous provision that exempted gross proceeds received by independent sugar cane farmers from general excise tax, which previously required specific conditions like being classified as an independent farmer under the Sugar Act of 1948 and having sale proceeds tied to manufactured sugar product values. The bill also eliminates the tax exemption for amounts received by PC3 program contractors for healthcare provider costs. The bill makes corresponding technical amendments to cross-referenced sections, such as updating a cooperative housing corporation tax reference. While the bill indicates an effective date of January 1, 3000 (which appears to be a placeholder), this likely means the changes would take effect upon the bill's approval. The primary impact is that these two specific categories of income will now be subject to Hawaii's general excise tax, potentially increasing tax revenue for the state.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1149&year=2025