HB 1128 Summary

• Exempts common carriers from general excise and use taxes on aviation fuel sold from foreign-trade zones for interisland air transportation within Hawaii.

• Adds a new section to Hawaii Revised Statutes Chapter 237 to exclude these fuel sales from taxation.

• Amends the definition of "use" under Chapter 238-1 to add aviation fuel exemption as subsection (12), clarifying that fuel used between two points in the State is excluded from use tax.

• Applies to fuel categorized as privileged foreign merchandise, nonprivileged foreign merchandise, domestic merchandise, or zone-restricted merchandise admitted into a foreign-trade zone.

• Takes effect on July 1, 2050.