STAND. COM. REP. NO. 1046-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2007

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2007 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to create equity among the types of aircraft in the State by exempting from the general excise tax amounts received from the servicing and maintenance of helicopters and construction of helicopter service and maintenance facilities.

Blue Hawaiian Helicopters, Maui Hotel & Lodging Association, and Hawaii Helicopters supported this measure. Life of the Land and a concerned individual opposed this measure. The Department of Taxation and Tax Foundation of Hawaii offered comments for this measure.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 2030, to facilitate further discussion; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2007, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2007, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair