Report Title:

Economy; Enterprise Zones

 

Description:

Amends the Enterprise Zones (EZ) Partnership offer statutory provision which state and county tax and other incentives to certain types of businesses which increase their hiring in zones selected by the counties and approved by the Governor. (HB549 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

549

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO STATE ENTERPRISE ZONES.

 

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

SECTION 1. The purpose of this Act is to amend the Enterprise Zones Partnership to clarify program administration and to optimize program benefits. This partnership offers state and county tax and other incentives to certain types of businesses that increase their hiring in zones selected by the counties and approved by the governor. The legislature finds that several technical changes are necessary in chapter 209E, "State Enterprise Zones," Hawaii Revised Statutes, to accomplish this purpose. These changes include: clarifying the eligibility of wind energy producers to qualify for the enterprise zones exemption from general excise tax; correcting terminology within the definition of enterprise zones-eligible service businesses; and eliminating the use tax exemption for all enterprise zone-qualified businesses.

SECTION 2. Section 209E-2, Hawaii Revised Statutes, is amended by amending the definition of "service business" to read as follows:

""Service business" means any corporation, partnership, or sole proprietorship that repairs ships, aircraft, or [assisted] assistive technology equipment, provides telecommunication services, information technology design and production services, medical and health care services, or education and training services as defined in this chapter."

SECTION 3. Section 209E-11, Hawaii Revised Statutes, is amended to read as follows:

"§209E-11 State general excise [and use] tax exemptions. The department shall certify annually to the department of taxation that any qualified business is exempt from the payment of general excise taxes on the gross proceeds from the manufacture of tangible personal property, the wholesale sale of tangible personal property, the engaging in a service business by a qualified business, or the engaging in research, development, sale, or production of all types of genetically-engineered medical, agricultural, or maritime biotechnology products[. The department shall also certify annually to the department of taxation that any qualified business is exempt from the use tax for purchases by the qualified business.] or the engaging in production of electric power from wind energy for sale primarily to a public utility company for resale to the public. The gross proceeds received by a contractor licensed under chapter 444 shall also be exempt from the general excise tax for construction within an enterprise zone performed for a qualified business within an enterprise zone. The exemptions shall extend for a period not to exceed seven years."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.