HI SB2741

Exempts all agricultural inputs used in commercial agricultural production from Hawaii's general excise tax (GET) beginning July 1, 2026

Agricultural inputs covered include chemicals, feed, fertilizer, fuel, seeds, plants, supplies, equipment parts, and other materials used to produce agricultural commodities

Addresses the "pyramiding" effect of GET, which is applied at multiple stages of production, processing, distribution, and retail, resulting in cumulative tax burdens of 5-8% or more on locally grown products

Aims to reduce food insecurity in Hawaii, where approximately one-third of households report difficulty obtaining enough food, by lowering production costs and improving price competitiveness for local agriculture

Authorizes the Department of Taxation to adopt administrative rules to implement the exemption; effective date set at July 1, 2050 (placeholder date)