STAND. COM. REP. NO. 830

Honolulu, Hawaii

, 2019

RE: H.B. No. 421

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 421, H.D. 2, 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, 2020, for amounts received from the servicing and maintenance of helicopters in an aircraft service and maintenance facility or from the construction of a facility that services and maintains helicopters; provided that 75% of the helicopters serviced and maintained annually in the facility are equipped with quiet technology.

Aviation Tech Associates LLC, Blue Hawaiian Helicopters, Hawaii Helicopters, and an individual submitted testimony in support of this measure. The Mayor of the County of Hawai‘i submitted testimony in opposition to this measure. The Department of Taxation, Tax Foundation of Hawaii, and an individual offered comments on this measure.

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. 421, H.D. 2, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair