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I.1B185 Page 2 of 7 ' as real property tax rebates and permit fee waivers. The incentives are intended to promote the viability of the qualified businesses during their initial years of operation. After the expiration of the initial incentive eligibility period, the qualified businesses become subject to the taxes and fees. Then the State, primarily through the general excise, use, and income taxes, has the opportunity to generate more revenues from an enterprise zone than does a county. A county has no access to those tax revenues and, accordingly, has less of an opportunity to recoup its initial investment in an enterprise zone. Thus, the legislature finds that the State should share with the relevant county a portion of the general excise, use, and income taxes paid by businesses initially assisted by state and local incentives. The legislature finds that the sharing of taxes will emphasize the partnership between the State and county, enable a county to recoup its investment in and derive positive net revenues from an enterprise zone, and encourage a county to propose more and larger enterprise zones. The legislature intends that this Act send each county a signal to be bold and visionary in the promotion of economic revitalization and development. The legislature recognizes that the counties offer local incentives of different levels, some of which are more generous than others. The legislature finds that this Act may encourage a county to establish better local incentives which offer greater financial assistance to qualified businesses. The purpose of this Act is to provide for the sharing between the State and a county of general excise, use, and income taxes paid by businesses in an enterprise zone which were initially assisted with state and local incentives, including real property tax exemptions intended to promote construction or renovation by a business either within or outside an enterprise zone. SECTION 2. Chapter 209E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§209E- R~v~nu~ aharinQ. (a) For the purpose of this section: "Enterprise zone activity" means a type of business activity_ u Described under the definition of "qualified business" in section 209E-2; and u Enaaaed in within an enterprise zone by a corporation, partnership, or sole proprietorship which was or continues to be a "qualified httnJ/vwvw.cavitol.hawaii.QOV/sessioncurrent/bills/hb185 .htm 02/02/?n(11