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GM 1403

Informing the Legislature that on July 3, 2025, the Governor returned the following bill without approval: HB1369 HD1 SD1 CD1

2025 Regular Session

Governor Green vetoed HB 1369, which aimed to limit tax exemptions for sugarcane producers, citing potential harm to their viability and broader economic impacts.

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Bill Summary · GM 1403

Summary of GM 1403: Veto of HB 1369 HD1 SD1 CD1

Bill Overview

Bill Number: GM 1403
Title: Informing the Legislature that on July 3, 2025, the Governor returned the following bill without approval: HB1369 HD1 SD1 CD1
Status: Received
Introduced: July 3, 2025
Classification: Proclamation
Subject: Veto of HB 1369 HD1 SD1 CD1

Purpose and Intent

GM 1403 serves as a formal communication from Governor Josh Green, M.D., to the Hawaii State Legislature, indicating his decision to veto House Bill 1369 (HB 1369). The intent of this bill was to amend and repeal certain tax exemptions under Hawaii's general excise tax (GET) and use tax laws. The Governor's veto is based on concerns regarding the potential negative impact on specific sectors, particularly sugarcane producers.

Key Provisions of HB 1369

The original HB 1369 proposed the following changes to Hawaii's tax laws:

  1. Limitations on GET Exemption for Sugarcane Producers:

    • The bill sought to limit the GET exemption for amounts received by sugarcane producers to those received on or before December 31, 2030.

  2. Repeal of Use Tax Exemption:

    • It aimed to repeal the use tax exemption for the value of certain vessels constructed before July 1, 1969.

  3. Repeal of GET Exemptions Related to Stock Exchanges:

    • The bill proposed to repeal specific GET exemptions associated with stock exchanges.

Impact of the Bill

The vetoed provisions of HB 1369 were expected to have the following impacts:

  • Financial Implications for Sugarcane Producers:

    • The limitation and repeal of tax exemptions could have placed additional financial burdens on sugarcane producers, potentially affecting their viability and operations.

  • Broader Economic Effects:

    • The changes could have influenced other sectors reliant on the affected tax exemptions, including maritime and financial services.

Governor's Statement of Objections

In his statement, Governor Green articulated that the removal of these tax exemptions would yield minimal financial benefit to the state while disproportionately harming sugarcane producers. He emphasized the need to consider the economic implications for these stakeholders before enacting such changes.

Legislative Actions

  • Date Received: July 3, 2025
    This bill has been formally received by the legislature, marking the beginning of the legislative process regarding the veto.

Conclusion

GM 1403 is a critical communication regarding the veto of HB 1369, reflecting the Governor's concerns about the potential adverse effects of tax changes on specific industries in Hawaii. The veto underscores the importance of balancing state revenue needs with the economic health of key sectors.

Compiled from official sources — confirm details with the bill’s official record.

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