HI HB142

Exempts general excise and use taxes on aviation fuel sold from a foreign-trade zone to common carriers for use in interisland air transportation.

Adds a new section to Chapter 237, Hawaii Revised Statutes, to exclude amounts received from aviation fuel sales to common carriers for air transportation between two points in the state from general excise tax.

Amends the definition of "use" in Section 238-1 to exclude aviation fuel categorized as privileged or non-privileged foreign merchandise, domestic merchandise, or zone-restricted merchandise admitted into a foreign-trade zone when purchased by common carriers for interisland air transportation.

Applies the same exemption to both operating leases and financing leases of aircraft used for interstate air transportation as defined in Title 49 United States Code Section 40102.

Effective July 1, 2050.