Enterprise Zone Rules and Reporting Requirements

Upon designation by the Governor of an area as an enterprise zone, the said enterprise zone shall retain enterprise zone status for a twenty (20) year period beginning on the date of the Governor's designation. The amendment of a zone status under Sec. 23A-2.3 of this Chapter shall not extend the twenty (20) year period.Within sixty (60) days of the designation by the Governor of an area as an enterprise zone, the Mayor or the Mayor's designated representative shall submit to the DBEDT a survey of the existing business conditions within the said enterprise zone, as required by DBEDT.Annually, and within sixty (60) days after the anniversary date of zone designation by the Governor, the Mayor or the Mayor's designated representative shall submit to the DBEDT a report evaluating the enterprise zone program's effectiveness upon the said enterprise zone, as required by DBEDT.If any portion of an area designated as an enterprise zone is subsequently included in an area designated as an enterprise zone by an agency of the Federal government, the said enterprise zone shall be enlarged to include the area designated by the Federal government.Pursuant to Sec. 209E-9, H.R.S., as may be amended, after designation as an enterprise zone, each qualified business firm in the zone shall submit annually to DBEDT a statement requesting one (1) or more of the tax incentives provided in Chapter 209E, Hawai'i Revised Statutes. The statement shall be accompanied by an approved form supplied by DBEDT and completed by an independent certified public accountant licensed by the State which states that the business firm meets the definition of a "qualified business." A copy of the statement submitted by each business to DBEDT shall be forwarded to the Mayor and county Council.Tangible personal property must be sold by an establishment of a qualified business within an enterprise zone and the transfer of title and delivery to the buyer of the tangible personal property must take place in the same enterprise zone in which the tangible personal property is sold. Services must be sold by an establishment of a qualified business engaged in a service business or calling within an enterprise zone and the services must be delivered in the same enterprise zone in which sold. Any services rendered outside of an enterprise zone shall not be deemed to be the services of a qualified business.Any enterprise zone shall comply with applicable County and State laws and rules, unless otherwise provided herein.