Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Department of Business, Economic Development and Tourism › Chapter 6 - ENTERPRISE ZONES › Subchapter 1 - GENERAL PROVISIONS › Section 15-6-2 - Definitions

Current through June, 2024
As used in this chapter, unless a different meaning
					 clearly appears in the context:
"Average number of full-time employees" means the sum of
					 the number of full-time employees employed at the end of each payroll period
					 during a qualified business' taxable year divided by the number of payroll
					 periods in the taxable year.
"Base taxable year" means the taxable year preceding the
					 taxable year during which the business is first qualified under this
					 program.
"County" or "counties" means the city and county of
					 Honolulu and the counties of Hawaii, Kauai, and Maui.
"Department" means the department of business, economic
					 development and tourism.
"Developed" means the improvements made to land through the
					 construction, repair, or remodeling of structures to accommodate the principal
					 use to which the land is or will be put. Improvements to land where parking is
					 the principal use shall not constitute development except where the business
					 purchasing or leasing the land can demonstrate to the satisfaction of the
					 county and department that such use is necessary in order to further the
					 purpose of the program and the local development objectives.
"Director" means the director of business, economic
					 development and tourism.
"Enterprise zone" means an area selected by a county and
					 approved by the governor to be eligible for this program.
"Establishment" means a single physical location where
					 business is conducted. A qualified business may include one or more
					 establishments, at least one of which must be in an enterprise zone.
"Extended three-year cycle" means the thirty-six
					 consecutive months during which qualified businesses engaged in the
					 manufacturing of tangible personal property or the producing or processing of
					 agricultural products may receive enterprise zone benefits in addition to the
					 business' seven-year cycle.
"Full-time employee" means an employee, including a leased
					 employee and an employee under a joint employment arrangement as defined in
					 section
					 209E-2, HRS, for whom
					 the employer is legally required to provide employee fringe benefits.
"Governing body" means the mayor or county council, or
					 both, as provided by county ordinance.
"Gross receipts" means gross income, wherever derived, as
					 reported on a qualified business' general excise tax return or similar
					 computation for those businesses exempt from chapter 237, HRS.
"Person" means the same as defined in section
					 235-1, HRS.
"Program" means the state enterprise zones program
					 authorized by chapter
					 209E, HRS.
"Qualification period" means the seven-year cycle, plus, if
					 applicable, the extended three-year cycle.
"Qualified business" means the same as defined in section
					 209E-2, HRS.
"Service business" means is not owned by the service
					 business or calling.
a qualified business that repairs ships, aircraft, or
					 assisted technology equipment, provides telecommunication services, medical and
					 health care services, or education and training services as defined in chapter
					 209E, HRS. Where the service business, in the same transaction, engages in both
					 the sale of tangible property and services, the service business shall
					 segregate the sale of services that are exempt under chapter 209E, HRS, from
					 the sale of tangible personal property. The service business shall sustain the
					 burden of proving the segregation was properly made. If the service business
					 fails to sustain the burden, the entire transaction shall be subject to the
					 general excise tax.
"Seven-year cycle" means the eighty-four consecutive months
					 during which a qualified business may receive enterprise zone benefits. The
					 cycle begins on the first of the month following the date the department
					 determines that a business is eligible to participate in the enterprise zones
					 program. The cycle ends after eighty-four consecutive months.
"State" means the State of Hawaii.
"Taxable year" or "tax year" means the calendar year (or
					 the fiscal year ending during such calendar year) on the basis of which taxes
					 due the State are computed under the applicable tax law.
"Taxes due the State" means income taxes due under chapter
					 235, HRS.
"Wholesale" means those activities defined in section
					 237-4(8),
					 HRS.