Hawaii Farm’s Guinea Grass is Subject to Tax

On November 28,2022, The Intermediate Court of Appeals of the State of Hawaii ruled that a farm producing guinea grass is subject to taxation and ineligible to claim exemption based on agricultural use. Though both sides stipulated the grass was grown to be placed into bales of hay for feeding livestock, the conflict arose over if this use in combination with the location of the farm would allow the guinea grass to be considered an agricultural “crop” and exempt from tax or if it should still be classified as a “forage crop” and subject to tax.

Source: salestaxinstitute.com

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