GET Exemption; Developers

Provides GET exemption to resort developers.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT


 1      SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "237-     Exemption for qualified improvement.  (a)  For
 5 the purposes of this section:
 6      "Qualified improvement costs" means any capitalized costs
 7 for construction and equipment of a permanent nature related to a
 8 qualified resort facility, including infrastructure costs.
 9      "Qualified resort facility" means any building or
10 improvement located or that will be located:
11      (1)  On property designated primarily for resort or hotel
12           use by the applicable county zoning ordinance or plan;
13           or
14      (2)  On property not so designated, but the primary purpose
15           of which is commercial or recreational use that
16           supports or services a hotel or resort use, such as a
17           golf course, golf course clubhouse, or retail center.
18      (b)  The department of taxation shall certify the amount of
19 the gross proceeds arising from qualified improvement costs for

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                                     H.B. NO.           

 1 each qualified resort facility at the request of a prospective
 2 taxpayer.  There shall be exempted from, and excluded from the
 3 measure of, the taxes imposed by this chapter, amounts received
 4 by a taxpayer as a portion of the gross proceeds arising from
 5 qualified improvement costs for a qualified resort facility in
 6 the following amounts:
 7      (1)  For qualified improvement costs totalling no more than
 8           $2,500,000, a twenty-five per cent tax exemption;
 9      (2)  For qualified improvement costs totalling more than
10           $2,500,000 but less than $25,000,000, a fifty per cent
11           exemption;
12      (3)  For qualified improvement costs totalling more than
13           $25,000,000 but less than $50,000,000, a seventy-five
14           per cent exemption; and
15      (4)  For qualified improvement costs totalling more than
16           $50,000,000, a one hundred per cent exemption.
17      (c)  The department shall adopt rules, pursuant to chapter
18 91 to effectuate this section including criteria to determine a
19 qualified resort facility's total cost for purposes of subsection
20 (b); provided that such rules shall be in place no later than
21 October 1, 2000."
22      SECTION 2.  New statutory material is underscored.

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 1      SECTION 3.  This Act, upon its approval, shall apply to
 2 taxable years beginning after December 31, 1998 and ending before
 3 December 31, 2004.
 5                           INTRODUCED BY: ________________________