STAND. COM. REP. NO. 668

Honolulu, Hawaii

, 2023

RE: H.B. No. 74

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 74, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this measure is to establish a five-year general excise tax exemption, beginning January 1, 2024, for amounts received from:

(1) The servicing and maintenance of helicopters in an aircraft service and maintenance facility; or

(2) The construction of a facility that services and maintains helicopters where at least seventy-five percent of the helicopters serviced and maintained annually in the facility are equipped with quiet technology.

Your Committee received testimony in support of this measure from the Department of Transportation, Blue Hawaiian, and Aircraft Owners and Pilots Association. Your Committee received testimony in opposition to this measure from Jack Harter Helicopters. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that this measure will provide tax parity for smaller aviation operators and support the aviation maintenance workforce in the State. This measure also seeks to reduce aviation noise in communities by incentivizing aircraft service and maintenance facilities to service and maintain more helicopters that are equipped with quiet technology.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 74, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

DANIEL HOLT, Chair