THE SENATE	S.B. NO.	2978
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

     SECTION 1.  The legislature finds that small turbo propeller airplanes play a vital role in the transport or conveying of baggage, passengers, and goods between the islands of this State.  The services provided by these airplanes are particularly critical for Hawaii's isolated rural communities, which often have few or no alternative means of transportation.

     The legislature further finds that in today's highly competitive economy, the operators of these small airplanes struggle to maintain and expand their operations to serve Hawaii's residents.

     The purpose of this Act is to provide a tax deduction for the amount of interisland airplane carrier landing fees and terminal facility lease rents in any county with a population of less than 500,000 persons.

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235‑   Interisland airplane carriers; tax deduction. (a)  There shall be allowed as a deduction from gross income the amount of interisland airplane carrier landing fees and terminal facility lease rents paid by a taxpayer during the taxable year in any county with a population of less than 500,000 persons up to a maximum of $           per taxable year.

(b)  The director of taxation shall prepare such forms as may be necessary to claim a tax deduction under this section, may require proof of the claim for the tax deduction, and may adopt rules pursuant to chapter 91 necessary to effectuate this section.

(c)  For the purpose of this section:

"Interisland airplane carrier" means a business, person, or entity that owns or operates one or more turbo propeller airplanes to transport or convey baggage, passengers, or goods between the islands of this State for a fee.

"Turbo propeller airplane" means an aircraft with a turbojet engine used to drive an external propeller."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2011.

INTRODUCED BY:

_____________________________

Report Title:

Interisland Airplane Carrier; Tax Deduction; Landing Fee

Description:

Establishes a tax deduction for the amount of interisland airplane carrier landing fees and terminal facility lease rents paid in any county with a population of less than 500,000 persons.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.