GET Exemption; Developers

Provides GET exemption to resort developers.  (SD1)
THE SENATE                              S.B. NO.           S.D. 1
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, including existing nonconforming hotels, by the
13           applicable county zoning ordinance or plan; 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
20 each qualified resort facility at the request of a prospective
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 1 taxpayer.  There shall be exempted from, and excluded from the
 2 measure of, the taxes imposed by this chapter, amounts received
 3 by a taxpayer as a portion of the gross proceeds arising from
 4 qualified improvement costs for a qualified resort facility in
 5 the following amounts:
 6      (1)  For qualified improvement costs totalling no more than
 7           $2,500,000, a twenty-five per cent exemption;
 8      (2)  For qualified improvement costs totalling more than
 9           $2,500,000 but less than $25,000,000, a fifty per cent
10           exemption;
11      (3)  For qualified improvement costs totalling more than
12           $25,000,000 but less than $50,000,000, a seventy-five
13           per cent exemption; and
14      (4)  For qualified improvement costs totalling more than
15           $50,000,000, a one hundred per cent exemption.
16      (c)  The department shall adopt rules, pursuant to chapter
17 91 to effectuate this section including criteria to determine a
18 qualified resort facility's total cost for purposes of subsection
19 (b); provided that such rules shall be in place no later than
20 October 1, 2000."
21      SECTION 2.  New statutory material is underscored.
22      SECTION 3.  This Act shall take effect upon its approval,
23 and shall apply to gross income or gross proceeds received after
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 1 December 31, 1998, and received before January 1, 2005.