2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-27.6 Solid waste processing, disposal, and electric generating facility; certain amounts exempt.

§237-27.6 Solid waste processing, disposal, and electric generating facility; certain amounts exempt.
(a) Any provision of the law to the contrary notwithstanding, there shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the amounts enumerated in subsection (b) arising from a transaction involving a sale and leaseback of a solid waste processing, disposal, and electric generating facility entered into by a political subdivision of the State under section 46-19.1 where the facility is owned or under construction by the subdivision before May 10, 1988.
(b) Amounts are exempted or excluded from taxation under this chapter only to the extent that they:
(1) Are received by an operator of a facility under an operating contract with a political subdivision, where the:
(A) Operator, or its successor, entered into an operating contract prior to May 10, 1988;
(B) Operator enters into a lease of the facility from the owner at a time that coincides with the time the owner and the political subdivision entering into a sale and leaseback transaction; and
(C) Amounts are used by the operator to make rental payments to the owner;
(2) Are received as rental payments by the owner of the facility from the operator of the facility;
(3) Do not exceed the payments made by the owner of the facility under the sale and leaseback transaction to the political subdivision; and
(4) In no case exceed debt service costs incurred by the political subdivision for the construction of the facility.
(c) For the purposes of this section:
"Debt service costs" means payments of principal and interest on general obligation bonds issued at any time by a political subdivision for the construction of the facility.
"Operator" means a private entity who enters into an agreement or other arrangement with the owner of a solid waste processing, disposal, and electric generating facility for the purpose of operating such facility for a political subdivision of the State.
"Owner" means any person who purchases a solid waste processing, disposal, and electric generating facility under section 46-19.1.
"Sale and leaseback" means a transaction in which a facility is sold by a political subdivision to a private entity for cash, under an installment sale, a financing lease, or similar arrangement, or any combination thereof, where the political subdivision has the right to repurchase the facility at a later date, and where the facility is leased to an operator of the facility.
"Solid waste processing, disposal, and electric generating facility" or "facility" means a facility for the processing and disposal of solid waste or the generation of electric energy, or both, the construction of which has been financed pursuant to section 47-4 and constitutes an undertaking as defined in section 49-1. [L 1988, c 57, §2; am L 1990, c 34, §6]
Revision Note
Pursuant to §23G-15, in:
(1) Subsections (a) and (b), "May 10, 1988" substituted for "the effective date of this section"; and
(2) Subsection (c), definitions rearranged.