LEGISLATURE 2003 STATUS REPORT
Business/Taxes

Here are many of the major bills under consideration at the Legislature. Listing which bills are passing and which are failing halfway through the legislative session is risky.

Failing bills can be revived, living bills can be rewritten, and key lawmakers can change their minds.

This listing of bills is an effort to show readers where issues appear to be headed. Public participation and lobbying can change the outcome of any issue listed here.

Ko Olina tax break
(SB 377 SD1)

Establishes a tax credit for qualified costs at Ko Olina Resort and Marina.

General excise tax increase
(SB 1626 SD1)

Would increase the general excise tax from 4 percent to 4.5 percent to be offset with a food tax credit of up to $100 per person. The measure is estimated to raise about $80 million to be earmarked for education, with $70 million for the state Department of Education and $10 million for the University of Hawai'i.

Conveyance tax increase
(SB 1517 SD2)

Would increase the conveyance tax from 10 cents per $100 to 20 cents per $100 of actual and full consideration for all transfers or conveyances of realty valued at least $600,000. The increase is aimed at providing a stable financing mechanism for the natural area reserves system.

Airline tax credit
(SB 1172 SD2)

Would provide a tax credit for landing fees for airlines that have a domicile based in Hawai'i.

Kalaeloa tax credit
(SB 1619 SD2)

Establishes an investment tax credit for qualified investments in the motor sports facility to be developed at Kalaeloa, parcelÊ9.

Job creation tax credit
(HB 291 HD2)

Establishes a tax credit to employers who hire people and pay them annual wages of $25,000 or higher and keep them for at least two years. The credit would equal $5,000 per qualified employee, provided that two-thirds of the credit is used for workforce training. The credit may be claimed only if the number of qualified employees is equal to 10 per cent or more of the full-time workforce employed at the time of application for the credit.

Retaining employees
(SB1 SD2)

Requires people who acquire businesses with more than 100 employees to keep at least half of company's nonsupervisory employees. Exempts construction companies.

Hotel construction tax credit
(HB 1400, HD1)

Extends the hotel construction and remodeling tax credit to Jan. 1, 2008; allows the tax credit to be claimed only upon declaration by the governor. Expands the definition of "qualified hotel facility" to include commercial buildings and facilities within a qualified resort area.

County taxing authority
(HB 1554 HD1)

Allows counties with a population of more than 200,000 to establish an unspecified general excise and use surcharge tax. In the event that happens, the said county would no longer receive transient accommodations, or hotel room tax revenues while the other counties and the Hawai'i Tourism Authority would get larger shares.

Hotel-room tax
(SB 1461)

Requires that 2 percent of each county's transient accommodations tax revenue collections be used for tourism promotions and visitor industry enhancements.

Cruise ship tax

Would impose the transient accommodations tax on cruise ship accommodations.

Research tax credit

Establishes a research and development income tax credit for qualifying small businesses.

Health insurance tax credit

Allows certain small businesses to claim an income tax credit of up to 15 percent of prepaid health insurance premiums paid for employees and their families.

Insurance pool

Creates an insurance pool for small businesses by authorizing the Hawai'i Employers' Mutual Insurance Company to cover general liability and property damage claims incurred by small businesses.