HOUSE OF REPRESENTATIVES	H.B. NO.	2007
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

 

 

ReLATING TO TAXATION.

 

 

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

 

     SECTION 1.  Hawaii depends heavily on air service for transportation, medical supplies and other medical needs, and commercial goods.  As an island-state, residents depend on air service for the transport of passengers, goods, and services among islands.  Inter-island travel is a key component of the Hawaii's tourism industry and stimulates tourism, the largest single contributor to the State's gross domestic product.

     According to the Hawaii tourism authority, visitors to the State spend in excess of $1,200,000,000 per month.  The legislature finds that there is a proliferation of helicopter use in the State for travel, recreational, and medical needs.  However, despite the significant function of helicopters to air travel in the State, only traditional aircraft are afforded certain tax exemptions.  Due to changes in the aviation industry and increased travel options, taxes levied on aviation businesses must be updated to promote inter-island travel options for visitors and residents, and for the interests of the State.

     The purpose of this Act is to create equity among the types of aircraft in the State by exempting the amounts received for the servicing and maintenance of helicopters and the construction of helicopter service and maintenance facilities, from the general excise tax.

     SECTION 2.  Section 237-24.9, Hawaii Revised Statutes, is amended by amending the definition of "aircraft" in subsection (b) to read as follows:

     ""Aircraft" means any craft or artificial contrivance of whatever description engaged in intrastate, interstate, or international scheduled commercial use as defined in chapter 263, that operates with two or more jet engines[.], or a helicopter."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.

 

INTRODUCED BY:

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Report Title:

General Excise Tax; Exemption; Helicopter Servicing and Maintenance Facility

 

Description:

Amends the definition of "aircraft" under section 237-24.9, Hawaii Revised Statutes, to include helicopters.  Exempts amounts received for the servicing and maintenance of helicopters and the construction of helicopter service and maintenance facilities, from the general excise tax.

 

 

 

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