Relating To A Development Zone.
The bill brings substantial modifications to state laws regarding land use and tax exemptions. It proposes significant benefits for businesses operating within the new ahupua'a zone, including exemptions from general excise taxes for the first ten years and state taxes on business activities during depreciation periods. Additionally, businesses can expect a reimbursement for excise taxes incurred during the first seven years of operation. The bill also allows for exemptions from zoning requirements for implementation of projects within the zone, fostering a conducive environment for agricultural development.
House Bill 533 aims to establish a new development zone known as the 'new ahupua'a zone' within Hawaii, specifically targeting agricultural production and self-sufficiency. Given that Hawaii imports approximately 85% of its food at a significant cost, the bill intends to utilize state land to increase local food production and improve food security. The creation of this zone is envisioned to transform up to 120,000 acres of state-managed land into productive farmland, coupled with a forestry manufacturing center focusing on high-value timber and other products for local use and export.
While the bill presents promising advancements for agriculture and economic development, it may generate contention surrounding environmental management and local governance. By limiting zoning and land use specifications, there are concerns about oversight and the potential environmental impact of extensive agricultural development and timber harvesting. Furthermore, the management structure proposed in the bill, wherein the governor selects the entity to oversee the development zone, may raise transparency and accountability questions among local stakeholders and advocacy groups.