(a) 
The Council finds that the State of Hawai'i, through Chapter 209E, Hawai'i Revised Statutes, and Chapter 6 of Title 15, Hawai'i Administrative Rules, has established procedures for the designation of enterprise zones for the purpose of stimulating business and industrial growth. Pursuant to said chapter and rules, qualified businesses in enterprise zones shall be entitled to the following State incentives:
(1) 
A seven (7) year exemption from general excise taxes on gross proceeds from qualified business conducted within an enterprise zone;
(2) 
An eighty percent (80%) income tax abatement the first year, decreasing ten percent (10%) each year thereafter over the next six (6) years;
(3) 
An income tax credit in an amount equal to eighty percent (80%) of the unemployment taxes paid during the first year, decreasing ten percent (10%) each year thereafter over the next six (6) years.
(b) 
The Council further finds that the County may nominate up to six (6) enterprise zones for designation by the Governor. Following designation of the nominated enterprise zone or zones, the State will accept applications from qualified businesses interested in participating in the enterprise zone program.
(c) 
The purpose of this Chapter is to set forth County procedures for the nomination, designation, amendment, provision of County incentives, and other requirements, for enterprise zones.
(Ord. No. 660, July 19, 1994)
Unless it is plainly evident from the context that a different meaning is intended, words and phrases used in this Chapter are defined as follows:
"Council"
means the Council of the County of Kaua'i.
"DBEDT"
means the Department of Business, Economic Development and Tourism, State of Hawai'i.
"Qualified business"
means any corporation, partnership, or sole proprietorship authorized to do business in the State as defined in Section 209E-2, H.R.S. as follows, and as may be amended:
(1) 
Subject to the State corporate or individual income tax under Chapter 235, Hawai'i Revised Statutes; the public service company tax under Chapter 239, Hawai'i Revised Statutes; or the bank and financial corporation tax under Chapter 241, Hawai'i Revised Statutes;
(2) 
Engaged in manufacturing, the wholesale sale of tangible personal property, or a service business or calling or engaged in producing agricultural products where the business is a producer as defined in Section 237-5, Hawai'i Revised Statutes; and
(3) 
Qualified under Section 209E-9, Hawai'i Revised Statutes, which includes gross receipts and employment criteria.
"Service business or calling"
means any corporation, partnership, or sole proprietorship that acts upon or processes tangible personal property, such as cleaning, repair and maintenance, and does not mean activities which are not performed upon tangible personal property.
(Ord. No. 660, July 19, 1994)
(a) 
The Mayor or Council, with the concurrence of the Mayor, may nominate an area to be designated as an enterprise zone, provided, that all nominations shall be approved by the Council by resolution.
(b) 
The nominated area shall be located within one (1) or more contiguous United States census tracts that, based upon the latest census tract data, meet at least one (1) of the following criteria:
(1) 
Twenty-five percent (25%) or more of the population of the area shall have incomes below eighty percent (80%) of the median family income of the County; or
(2) 
The unemployment rate in the area shall be one and a half (1 1/2) times the average unemployment rate for the State.
Notwithstanding this Subsection, from June 30, 1993, the effective date of Act 341, Session Laws Hawai'i 1993, until January 1, 1996, all census tracts within the County shall be eligible for designation as an enterprise zone as may be provided by State law.
(c) 
In nominating an area for designation as an enterprise zone, the Mayor or Council shall consult with all appropriate County agencies and shall consider the economic condition of the area, the potential benefits which may accrue to the County from business and industrial development in the area, the need and potential for job creation in the area, and the overall plan for redevelopment or stimulation of an area.
(d) 
Following approval by the Council by resolution, the Mayor or the Mayor's designated representative shall submit an application to the State DBEDT for processing and recommendation to the Governor for designation of the nominated area as an enterprise zone. The application shall include:
(1) 
A written description of the boundaries of the proposed zone;
(2) 
A map identifying the proposed enterprise zone boundaries relative to the boundaries of the census tracts that will be fully or partially included in the zone, and showing the State land use district classifications, publicly held lands, and County General Plan and/or development plan designations; and
(3) 
A statement indicating the local incentives proposed by the County.
(Ord. No. 660, July 19, 1994)
(a) 
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.
(b) 
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.
(c) 
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.
(d) 
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.
(e) 
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.
(f) 
Any enterprise zone shall comply with applicable County and State laws and rules, unless otherwise provided herein.
(Ord. No. 660, July 19, 1994)
(a) 
The Mayor or Council, with the concurrence of the Mayor, may initiate a request to amend a designated enterprise zone, provided, that all such requests shall be approved by the Council by resolution.
(b) 
Requests for amendments may be considered if the amendments relate to:
(1) 
Changes in local program incentives;
(2) 
Changes in zone boundaries; or
(3) 
Termination of the zone.
(c) 
Following approval by the Council by resolution, the Mayor or the Mayor's designated representative shall submit a written notification of the requested amendment to the State DBEDT for review and forwarding to the Governor for approval. If approved by the Governor, the requested amendment shall take effect on the date of the Governor's approval.
(Ord. No. 660, July 19, 1994)
(a) 
County incentives shall be proposed at the time of initial application for the designation of a nominated enterprise zone or proposed as amendments to a previously designated enterprise zone. Input from all affected County agencies shall be obtained.
(b) 
Proposed incentives may be made generally available throughout the zone, or available only to certain types of businesses, or available only for limited periods of time.
(c) 
If the Council is unable or unwilling to provide any of the incentives set forth in Section 209E-12, Hawai'i Revised Statutes, or other incentives acceptable to the Department of Business, Economic Development and Tourism, the enterprise zone shall terminate. Qualified businesses located in the enterprise zone shall be eligible to receive the State tax incentives provided by this Chapter even though the zone designation has terminated. No business may become a qualified business after the date of zone termination. The Council may amend its application with the approval of the Department of Business, Economic Development and Tourism; provided the Council proposes an incentive equal to or superior to the unamended application.
(Ord. No. 660, July 19, 1994)