STAND. COM. REP. NO. 1785

Honolulu, Hawaii

RE: H.B. No. 74

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 74, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to establish a five-year temporary general excise tax exemption 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 in which no less than seventy-five percent of the helicopters serviced and maintained annually in the facility are equipped with quiet technology.

Your Committee received written comments in support of this measure from one individual.

Your Committee received written comments in opposition to this measure from Jack Harter Helicopters.

Your Committee received written comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Blue Hawaiian Helicopters.

Your Committee recognizes that aviation is necessary for the State's transportation needs and economy. Your Committee also recognizes that communities are affected by helicopter noise pollution on a regular basis. Accordingly, your Committee finds that incentivizing aircraft service and maintenance facilities to service and maintain helicopters that are equipped with quiet technology, as proposed by this measure, may facilitate the installation of those technologies without adversely impacting the State's aviation industry.

Your Committee has amended this measure by clarifying that the general excise tax exemption shall apply to facilities that service and maintain helicopters outside any Hawaii airport.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 74, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 74, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair