GET; Entertainment

Exempts from the general excise tax amounts received from motion
picture production or from the construction of a motion picture

HOUSE OF REPRESENTATIVES                H.B. NO.1358       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 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-    Entertainment industry production; facilities.
 5 (a)  This chapter shall not apply to amounts received from
 6 entertainment industry production or the construction of an
 7 entertainment industry production facility in the State.
 8      (b)  As used in this section:
 9      "Entertainment industry production" means all of the
10 activities necessary for the production of television programs,
11 music production, and motion picture production, including the
12 planning and conceptual stages through to the finished commercial
13 products.
14      "Entertainment industry production facility" means a
15 facility not less than one hundred acres including production and
16 ancillary facilities for motion picture production, television
17 production and music production including sound stages, a
18 backlot, warehouse space, and related administrative employee
19 space."

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                                     H.B. NO.1358       

 1      SECTION 2.  Section 238-1, Hawaii Revised Statutes, is
 2 amended by amending the definition of "use" to read as follows:
 3      ""Use" (and any nounal, verbal, adjective, adverbial, and
 4 other equivalent form of the term) herein used interchangeably
 5 means any use, whether the use is of such nature as to cause the
 6 property to be appreciably consumed or not, or the keeping of the
 7 property for such use or for sale, and shall include the exercise
 8 of any right or power over tangible personal property incident to
 9 the ownership of that property, but the term "use" shall not
10 include: 
11      (1)  Temporary use of property, not of a perishable or
12           quickly consumable nature, where the property is
13           imported into the State for temporary use (not sale)
14           therein by the person importing the same and is not
15           intended to be, and is not, kept permanently in the
16           State (as for example without limiting the generality
17           of the foregoing language:  (A) in the case of a
18           contractor importing permanent equipment for the
19           performance of a construction contract, with intent to
20           remove, and who does remove, the equipment out of the
21           State upon completing the contract; (B) in the case of
22           moving picture films imported for use in theaters in
23           the State with intent or under contract to transport

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                                     H.B. NO.1358       

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

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                                     H.B. NO.1358       

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

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                                     H.B. NO.1358       

 1           chapter 237 that are used in an entertainment industry
 2           production, or the construction of an entertainment
 3           industry production facility as those terms are defined
 4           in section 237-  .
 5      With regard to purchases made and distributed under the
 6 authority of chapter 421, a cooperative association shall be
 7 deemed the user thereof."
 8      SECTION 3.  Statutory material to be repealed is bracketed.
 9 New statutory material is underscored.
10      SECTION 4.  This Act shall take effect upon its approval.
12                              INTRODUCED BY:______________________