Bill > HB1149

This bill amends Hawaii's General Excise Tax law by removing two specific tax exemptions. First, it eliminates the existing tax exemption for independent sugar cane farmers, which previously allowed these farmers to be exempt from taxation when selling sugarcane to manufacturers under certain conditions related to the Sugar Act of 1948. Second, the bill repeals the tax exemption for contractors working under the Patient-Centered Community Care program established by the U.S. Department of Veterans Affairs, which means these contractors will now be subject to general excise tax on their revenue. The bill also makes consequential technical amendments to cross-referenced sections to maintain legal consistency, such as renumbering exemption categories. While the bill's effective date is listed as January 1, 3000 (which appears to be a placeholder), the practical effect is to remove these specific tax exemptions, potentially increasing tax revenue for the state by requiring these previously exempt entities to pay general excise tax on their income. The changes primarily impact agricultural producers and healthcare service contractors working with Veterans Affairs.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1149&year=2026