Haw. Code R. § 18-238-4 - Certain property used by producers
Current through February, 2022
Example 1: An agricultural cooperative purchases and imports from an unlicensed seller milking cows and feed for such cows, to be sold to licensed producers who sell all of their products exclusively to "X", a milk processor. Under subsection (a)(2), use tax shall not be imposed upon the imported milking cows and the feed.
Example 2: A licensed poultry farmer imports from an unlicensed seller feed for his egg laying hens. The eggs produced are sold mostly to grocery stores for resale; the balance of the eggs produced are sold to his neighbors and friends living in the vicinity of his farm. Under section 238-4, HRS, and § 18-238-4(a)(1), the poultry farmer is liable for a use tax at the rate of one-half of one percent, the same as in the case of a purchaser who is a licensed retailer, but only on the feed imported and attributable to sales of eggs made to his neighbors and friends. To determine his tax liability he may elect to use one of the methods permitted in § 18-238-2(h).
Example 3: A licensed feed lot operator imports feed to be used in his pen feeding operations. The cattle entrusted in his care belong to various licensed producers who do not have the proper or necessary pen feeding facilities. Under section 238-4, HRS, and § 18-238-4(a)(2), use tax shall not be imposed upon the imported feed. If the feed lot operator imported insecticides for use in maintaining his pen feeding facilities, a use tax at the rate of four percent would apply because insecticides are not included among the specific property shown in § 18-238-4(b).
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