REPORT TITLE:
Aviation facilities

DESCRIPTION:
Provides general excise and use exemptions for aviation training
facilities.  (HB1027 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1027
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
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                   A  BILL  FOR  AN  ACT

RELATING TO TAX EXEMPTIONS FOR AVIATION TRAINING FACILITIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 237, Hawaii Revised Statues, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "237-    Aviation training facility.  (a)  This chapter
 
 5 shall not apply to amounts received by an aviation training
 
 6 facility for a certified training program or from the
 
 7 construction of an aviation training facility in the State.
 
 8      (b)  As used in this section:
 
 9      "Aviation training facility" means:
 
10      (1)  A facility that is not less than thirty thousand square
 
11           feet in area, which may include ancillary space that is
 
12           integral to the facility, such as classrooms,
 
13           laboratories, systems rooms, simulator rooms, learning
 
14           centers, libraries, distance learning centers, flight
 
15           operations and dispatch, offices, conference rooms, and
 
16           aircraft hangers, and related administrative and
 
17           employee space; and
 
18      (2)  A facility that provides certified training programs.
 

 
Page 2                                                     1027
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      "Certified training programs" means professional training
 
 2 programs that meet Federal Aviation Agency requirements,
 
 3 including the following programs:
 
 4      (1)  Flight, aircraft maintenance, and air traffic control;
 
 5      (2)  Aircraft engineering systems;
 
 6      (3)  Cabin crew training;
 
 7      (4)  Ramp services;
 
 8      (5)  Aviation management;
 
 9      (6)  Customer service and quality management;
 
10      (7)  Airport management;
 
11      (8)  Airport security;
 
12      (9)  Crash fire and rescue;
 
13     (10)  Information systems programming; and
 
14     (11)  Simulation design and operations.
 
15     "Construction of an aviation training facility" means all
 
16 design, engineering, labor, and material costs associated with
 
17 the construction of any aviation training facility, the principal
 
18 purpose of which is to provide facilities for aviation training."
 
19      SECTION 2.  Section 238-1, Hawaii Revised Statutes, is
 
20 amended by amending the definition of "use" to read as follows:
 
21       ""Use" (and any nounal, verbal, adjective, adverbial, and
 
22 other equivalent form of the term) herein used interchangeably
 
23 means any use, whether the use is of such nature as to cause the
 

 
Page 3                                                     1027
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 property to be appreciably consumed or not, or the keeping of the
 
 2 property for such use or for sale, and shall include the exercise
 
 3 of any right or power over tangible personal property incident to
 
 4 the ownership of that property, but the term "use" shall not
 
 5 include:
 
 6      (1)  Temporary use of property, not of a perishable or
 
 7           quickly consumable nature, where the property is
 
 8           imported into the State for temporary use (not sale)
 
 9           therein by the person importing the [same] property and
 
10           is not intended to be, and is not, kept permanently in
 
11           the State (as for example, without limiting the
 
12           generality of the foregoing language:  (A) in the case
 
13           of a contractor importing permanent equipment for the
 
14           performance of a construction contract, with intent to
 
15           remove, and who does remove, the equipment out of the
 
16           State upon completing the contract; (B) in the case of
 
17           moving picture films imported for use in theaters in
 
18           the State with intent or under contract to transport
 
19           [the same] them out of the State after completion of
 
20           such use; (C) in the case of a transient visitor
 
21           importing an automobile or other belongings into the
 
22           State to be used by the transient visitor while therein
 
23           but which are to be used and are removed upon the
 
24           transient visitor's departure from the State);
 

 
Page 4                                                     1027
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (2)  Use by the taxpayer of property acquired by the
 
 2           taxpayer solely by way of gift;
 
 3      (3)  Use which is limited to the receipt of articles and the
 
 4           return thereof, to the person from whom acquired,
 
 5           immediately or within a reasonable time either after
 
 6           temporary trial or without trial;
 
 7      (4)  Use of goods imported into the State by the owner of a
 
 8           vessel or vessels engaged in interstate or foreign
 
 9           commerce and held for and used only as ship stores for
 
10           the vessels;
 
11      (5)  The use or keeping for use of household goods, personal
 
12           effects, and private automobiles imported into the
 
13           State for nonbusiness use by a person who:
 
14           (A)  [acquired] Acquired them in another state,
 
15                territory, district, or country[,];
 
16           (B)  [at] At the time of the acquisition was a bona
 
17                fide resident of another state, territory,
 
18                district, or country[,];
 
19           (C)  [acquired] Acquired the property for use outside
 
20                the State[,]; and
 
21           (D)  [made] Made actual and substantial use thereof
 
22                outside this State;
 

 
 
 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           provided that as to an article acquired less than three
 
 2           months prior to the time of its importation into the
 
 3           State, it shall be presumed, until and unless clearly
 
 4           proved to the contrary, that it was acquired for use in
 
 5           the State and that its use outside the State was not
 
 6           actual and substantial;
 
 7      (6)  The leasing or renting of any aircraft or the keeping
 
 8           of any aircraft solely for leasing or renting to
 
 9           lessees or renters using the aircraft for commercial
 
10           transportation of passengers and goods;
 
11      (7)  The use of oceangoing vehicles for passenger or
 
12           passenger and goods transportation from one point to
 
13           another within the State as a public utility as defined
 
14           in chapter 269; [and]
 
15      (8)  The use of material, parts, or tools imported or
 
16           purchased by a person licensed under chapter 237 which
 
17           are used for aircraft service and maintenance, or the
 
18           construction of an aircraft service and maintenance
 
19           facility as those terms are defined in section
 
20           237-24.9[.]; and
 
21      (9)  The use of material, parts, or tools imported or
 
22           purchased by a person licensed under chapter 237 that
 
23           are used by an aviation training facility for a
 

 
Page 6                                                     1027
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           certified training program, or the construction of an
 
 2           aviation training facility as those terms are defined
 
 3           in section 237-     .
 
 4      With regard to purchases made and distributed under the
 
 5 authority of chapter 421, a cooperative association shall be
 
 6 deemed the user thereof."
 
 7      SECTION 3.  Statutory material to be repealed is
 
 8 bracketed.  New statutory material is underscored.
 
 9      SECTION 4.  This Act shall take effect upon its approval;
 
10 provided that:
 
11      (1)  Section 1 shall apply to gross receipts received after
 
12           December 31, 1999; and section 2 shall apply to use
 
13           taxes accruing under chapter 238, Hawaii Revised
 
14           Statutes, after December 31, 1999; and
 
15      (2)  This Act is repealed on July 1, 2001, and section 238-
 
16           1, Hawaii Revised Statutes, shall be reenacted in the
 
17           form in which it read on the day before the approval of
 
18           this Act.