Report Title:

Tax Credits; Hotel Construction and Remodeling

 

Description:

Expands the definition of "qualified hotel facility" to include property on which commercial or recreational use is permitted and offsite improvements necessary to service destination resort areas.

THE SENATE

S.B. NO.

2383

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to taxation TO STIMULATE THE ECONOMY.

 

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

SECTION 1. In October 2001, the legislature met in special session to approve legislation designed to ameliorate the negative effects that the September 11, 2001, terrorist attacks had on Hawaii's economy. One measure, Act 8, Third Special Session 2001, raised the percentage of the tax credit for construction and remodeling of hotels from four to ten per cent to assist the tourism industry in its efforts to attract more visitors to Hawaii.

The legislature finds that this tax credit is an excellent means to boost Hawaii's tourism and construction industries, and should be expanded to include other tourism-related construction and renovation.

The purpose of this Act is to expand the facilities eligible for the hotel construction and renovation tax credit.

SECTION 2. Section 235-110.4, Hawaii Revised Statutes, is amended by amending the definition of "qualified hotel facility" in subsection (g) to read as follows:

""Qualified hotel facility" means [a]:

(1) A hotel/hotel-condo as defined in section 486K-1, and includes a time share facility or project[.];

(2) Any property on which commercial or recreational use is permitted to support or service a hotel/hotel-condo or resort use; or

(3) Offsite improvements necessary to service destination resort areas where a hotel/hotel-condo is situated."

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 Statutory material to be repealed is bracketed and stricken.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

SECTION 4. This Act shall take effect upon approval and shall apply to taxable years beginning after December 31, 2002.

INTRODUCED BY:

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