REPORT TITLE:
GET Exemption; Developers


DESCRIPTION:
Provides GET exemption to resort developers.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1788
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT
RELATING TO TAXATION.



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

 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
 

 
Page 2                                                     1788
                                     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.
 

 
 
 
Page 3                                                     1788
                                     H.B. NO.           
                                                        
                                                        

 
 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.
 
 4 
 
 5                           INTRODUCED BY: ________________________