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REPORT TITLE:
GET Exemption; Developers


DESCRIPTION:
Provides GET exemption to resort developers.  (SD1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3018
THE SENATE                              S.B. NO.           S.D. 1
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, 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
 
Page 2                                                     3018
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 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
 
 
 
Page 3                                                     3018
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 December 31, 1998, and received before January 1, 2005.