Bill Text: HI SB742 | 2010 | Regular Session | Introduced

Hawaii Senate Bill 742 (Prior Session Legislation)

Introduced

Bill Title: Mass Transit Route Economic Zones

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB742 Detail]

Download: Hawaii-2010-SB742-Introduced.html

Report Title:

Mass Transit Route Economic Zones

Description:

Creates for 20 years economic zones proximate to any mass transit route on Oahu. Grants nonrefundable tax credits in varying percentages to economic zone qualified businesses earning above and below $ in gross annual revenues. Grants % tax credit for development of housing within zones.

THE SENATE	S.B. NO.	742
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

relating to mass transit route economic zones.

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

mass transit route economic ZONES

§ -1 Purpose. The purpose of this chapter is to stimulate economic development, including the construction of affordable housing, along the routes of a mass transit system in a county having a population of more than five hundred thousand by creating economic zones along the routes that are designated by the relevant county council and approved by the governor.

§ -2 Definitions. As used in this chapter, unless the context clearly requires otherwise:

"Department" means the department of business, economic development, and tourism.

"Director" means the director of business, economic development, and tourism.

"Establishment" means a single physical location where a business is conducted. A business may include one or more establishments, any number of which may be in a mass transit route economic zone.

"Mass transit route economic zone" means an area:

(1) Approved by the governor, upon the determination by the relevant county council under this chapter;

(2) That is within the jurisdiction of the relevant county council; and

(3) That is eligible for the benefits under this chapter.

"Qualified business" means any corporation, partnership, or sole proprietorship authorized to do business in the State that is qualified under section ‑6, subject to the state corporate or individual income tax under chapter 235, and includes the construction, operation, administration, or maintenance of affordable housing, and retail, services, or parking businesses.

"Taxes due the State" means income taxes due under chapter 235.

§ -3 Mass transit route economic zone designation; rules. (a) The governor, upon the determination by the relevant county council, shall:

(1) Approve the designation of areas within the relevant county as mass transit route economic zones and fix their boundaries for a period of twenty years; and

(2) Allow the Hawaii community development authority to develop affordable housing, workforce housing, and retail, services, and parking businesses within a mass transit route economic zone.

A mass transit route economic zone shall not be subject to the requirement for prior authorization of the legislature by concurrent resolution under section 171‑53.

(b) The director shall adopt rules in accordance with chapter 91 to carry out the effect of this section.

§ -4 Government assistance; prohibition. There shall be no duplication of existing state tax incentives to qualified businesses that locate in a mass transit route economic zone.

§ -5 Rules, generally. The department shall adopt rules in accordance with chapter 91 to implement this chapter, including rules relating to health, safety, building, planning, zoning, and land use, which shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction in a mass transit route economic zone. Rules adopted under this section shall follow existing law, rules, and ordinances as closely as is consistent with standards meeting minimum requirements of energy efficiency, health, and safety. The department may provide by rule that lands within a mass transit route economic zone shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or may provide other restrictions on the use of the zone.

§ -6 Eligibility; qualified business. (a) Any business may be eligible to be designated a qualified business for purposes of this chapter if the business:

(1) Begins the operation of a business within a mass transit route economic zone after the designation of the zone; or

(2) Is actively engaged in conducting a business in an area prior to that area being designated a mass transit route economic zone.

(b) After designation as a mass transit route economic zone, each qualified business in the zone shall submit annually to the department an approved form supplied by the department that provides the information necessary for the department to determine if the business qualifies as a qualified business. The approved form shall be submitted by each business to the executive branch of the relevant county government, then forwarded to the department by the executive branch of the relevant county government.

(c) The form referred to in subsection (b) shall be prima facie evidence of the eligibility of a business for the purposes of this section.

§ -7 Nonrefundable tax credit. (a) There shall be allowed to each qualified business having taxable income from the active conduct of business within a mass transit route economic zone, a nonrefundable tax credit which may be deducted from the qualified business' net tax liability due to the State under any of the provisions of title 14, except the general excise tax. The tax credit shall be as follows:

(1) per cent for a qualified business having annual gross revenues of up to $ ;

(2) per cent for a qualified business having annual gross revenues of more than $ ; and

(3) per cent for a qualified business engaged in the development of housing; provided that a qualified business under this paragraph shall not receive a tax credit under either paragraph (1) or (2).

(b) If the tax credit under this section exceeds the qualified business' tax liability, the excess of credits over liability shall not be refunded to the taxpayer. All claims, including any amended claims, for tax credits under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(c) When a partnership is eligible for a tax credit under this section, each partner shall be eligible for the tax credit provided for in this section on the partner's income tax return in proportion to the amount of income received by the partner from the partnership.

(d) Any qualified business having taxable income from the active conduct of business, both within and without the mass transit route economic zone, shall allocate and apportion its taxable income attributable to that production. Tax credits provided for in this section shall only apply to taxable income of a qualified business attributable to the active conduct of a business within the mass transit route economic zone.

(e) The department of taxation shall prepare forms as may be necessary to claim the credit under this section.

(f) The director shall certify annually to the department of taxation the applicability of the tax credit provided in this chapter for a qualified business against any taxes due the State."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. This Act shall take effect on July 1, 2009 and shall be repealed on June 30, 2029.