HI HB2135

Establishes the Hawaii Farm TEAM Card Program, administered jointly by the Department of Agriculture and Biodiversity and the Department of Taxation, to provide general excise tax exemptions on agricultural materials for qualified farmers beginning January 1, 2027.

Exempts from general excise tax the sale of agricultural materials including farm trailers, irrigation equipment, propane/butane gas, feed, seed, fertilizers, pesticides, herbicides, fencing materials, and shipping supplies when purchased by qualified farmers.

Requires Hawaii Farm TEAM cards to be recertified every three years, with cardholders prohibited from reselling exempt materials, using them for personal purposes, or allowing others to use their card.

Imposes penalties for card misuse including payment of all avoided taxes plus interest, additional penalties under existing tax law, and suspension or revocation of the card.

Addresses Hawaii's food security concerns, noting the state imports 85-90% of its food, has lost 10% of farms since 2017, and faces potential $175 million in federal agricultural funding cuts.