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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TAX EXEMPTIONS FOR AVIATION TRAINING FACILITIES.



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

 1      SECTION 1.  Chapter 237, Hawaii Revised Statues, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "237-    Aviation training facility.  (a)  This chapter
 
 5 shall not apply to amounts received by an aviation training
 
 6 facility for a certified training program or from the
 
 7 construction of an aviation training facility in the State.
 
 8      (b)  As used in this section:  "Aviation training facility"
 
 9 means:
 
10      (1)  A facility that is not less than thirty thousand square
 
11           feet in area, which may include ancillary space that is
 
12           integral to the facility, such as classrooms,
 
13           laboratories, systems rooms, simulator rooms, learning
 
14           centers, libraries, distance learning centers, flight
 
15           operations and dispatch, offices, conference rooms, and
 
16           aircraft hangers, and related administrative and
 
17           employee space; and
 
18      (2)  A facility that provides certified training programs.
 
19           "Certified training programs" means professional
 

 
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 1           training programs that meet Federal Aviation Agency
 
 2           requirements, including the following programs:
 
 3      (1)  Flight, aircraft maintenance, and air traffic control;
 
 4      (2)  Aircraft engineering systems;
 
 5      (3)  Cabin crew training;
 
 6      (4)  Ramp services;
 
 7      (5)  Aviation management;
 
 8      (6)  Customer service and quality management;
 
 9      (7)  Airport management;
 
10      (8)  Airport security;
 
11      (9)  Crash fire and rescue;
 
12      (10) Information systems programming; and
 
13      (11) Simulation design and operations.
 
14      "Construction of an aviation training facility" means all
 
15      design, engineering, labor, and material costs associated
 
16      with the construction of any aviation training facility, the
 
17      principal purpose of which is the provision of facilities
 
18      for aviation training.
 
19      SECTION 2.  Section 238-1, Hawaii Revised Statutes, is
 
20 amended by amending the definition of "use" to read as follows:
 
21 ""Use"(and any nounal, verbal, adjective, adverbial, and other
 
22 equivalent form of the term) herein used interchangeably means
 

 
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 1 any use, whether the use is of such nature as to cause the
 
 2 property to be appreciably consumed or not, or the keeping of the
 
 3 property for such use or for sale, and shall include the exercise
 
 4 of any right or power over tangible personal property incident to
 
 5 the ownership of that property, but the term "use" shall not
 
 6 include:
 
 7      (1)  Temporary use of property, not of a perishable or
 
 8           quickly consumable nature, where the property is
 
 9           imported into the State for temporary use (not sale)
 
10           therein by the person importing the same and is not
 
11           intended to be, and is not, kept permanently in the
 
12           State (as for example without limiting the generality
 
13           of the foregoing language:  (A) in the case of a
 
14           contractor importing permanent equipment for the
 
15           performance of a construction contract, with intent to
 
16           remove, and who does remove, the equipment out of the
 
17           State upon completing the contract; (B) in the case of
 
18           moving picture films imported for use in theaters in
 
19           the State with intent or under contract to transport
 
20           the same out of the State after completion of such use;
 
21           (C) in the case of a transient visitor importing an
 
22           automobile or other belongings into the State to be
 

 
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 1           used by the transient visitor while therein but which
 
 2           are to be used and are removed upon the transient
 
 3           visitor's departure from the State);
 
 4      (2)  Use by the taxpayer or property acquired by the
 
 5           taxpayer solely by way of gift;
 
 6      (3)  Use which is limited to the receipt of articles and the
 
 7           return thereof, to the person from whom acquired,
 
 8           immediately or within a reasonable time either after
 
 9           temporary trial or without trial;
 
10      (4)  Use of goods imported into the State by the owner of a
 
11           vessel or vessels engaged in interstate or foreign
 
12           commerce and held for and used only as ship stores for
 
13           the vessels;
 
14      (5)  The use or keeping for use of household goods, personal
 
15           effects, and private automobiles imported into the
 
16           State for nonbusiness use by a person who (A) acquired
 
17           them in another state, territory, district, or country,
 
18           (B) at the time of the acquisition was a bona fide
 
19           resident of another state, territory, district, or
 
20           country, (C) acquired the property for use outside the
 
21           State, and (D) made actual and substantial use thereof
 
22           outside this State; provided that as to an article
 

 
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 1           acquired less than three months prior to the time of
 
 2           its importation into the State it shall be presumed,
 
 3           until and unless clearly proved to the contrary, that
 
 4           it was acquired for use in the State and that its use
 
 5           outside the State was not actual and substantial;
 
 6      (6)  The leasing or renting of any aircraft or the keeping
 
 7           of any aircraft solely for leasing or renting to
 
 8           lessees or renters using the aircraft for commercial
 
 9           transportation of passengers and goods;
 
10      (7)  The use of oceangoing vehicles for passenger or
 
11           passenger and goods transportation from one point to
 
12           another within the State as a public utility as defined
 
13           in chapter 269; [and]
 
14      (8)  The use of material, parts, or tools imported or
 
15           purchased by a person licensed under chapter 237 which
 
16           are used for aircraft service and maintenance, or the
 
17           construction of an aircraft service and maintenance
 
18           facility as those terms are defined in section
 
19           237-24.9[.]; and
 
20      (9)  The use of material, parts, or tools imported or
 
21           purchased by a person licensed under chapter 237 that
 
22           are used by an aviation training facility for a
 

 
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 1           certified training program, or the construction of an
 
 2           aviation training facility as those terms are defined
 
 3           in section 237-     .
 
 4      With regard to purchases made and distributed under the
 
 5 authority of chapter 421, a cooperative association shall be
 
 6 deemed the user thereof."
 
 7      SECTION 3.  Statutory material to be repealed is
 
 8 bracketed.  New statutory material is underscored.
 
 9      SECTION 4.  This Act shall take effect upon its approval;
 
10 provided that section one shall apply to gross receipts received
 
11 after December 31, 1999; and section 2 shall apply to use taxes
 
12 accruing under chapter 238, Hawaii Revised Statutes, after
 
13 December 31, 1999.
 
14 
 
15                           INTRODUCED BY: ________________________
 

 
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