HI HB123

Exempts aviation fuel sold from foreign-trade zones to common carriers from general excise tax and use tax when used for air transportation between two points within Hawaii.

Adds a new section to Chapter 237 of Hawaii Revised Statutes establishing the aviation fuel exemption for privileged foreign merchandise, nonprivileged foreign merchandise, domestic merchandise, or zone-restricted merchandise.

Amends the definition of "use" in Section 238-1 to exclude aviation fuel used by common carriers for intrastate air transportation from use tax liability.

Applies to gross income or gross proceeds received after June 30, 2011.

Clarifies that the exemption applies only to fuel used for air transportation between two points within the State, not interstate or international flights.