Title 14, Taxation

DEFINITIONS; ADMINISTRATION §237-1 Definitions. When used in this chapter, unless otherwise required by the context, the definitions contained in this section and in sections 237-2 to 237-7 shall govern. "Casual sale" means an occasional or isolated sale or transaction involving:…

[§237-10.5] Reporting requirement for contractors on federal construction projects. All persons who do not possess a valid license under this chapter at the time of the contract award and who contract with the federal government for any construction project located in the State s…

§237-11 Tax year. The assessment of taxes herein made and the returns required therefor shall be for the year ending on December 31. If the taxpayer, in exercising a privilege taxable under this chapter, keeps the taxpayer's books reflecting the same on a basis other than the cal…

§237-12 Tax cumulative; extent of license. (a) The tax imposed by this chapter shall be in addition to the license fee imposed under section 237-9 and all other taxes levied by law as a condition precedent to engaging in any business, trade, or calling. A person exercising a priv…

§237-13 Imposition of tax. There is hereby levied and shall be assessed and collected annually privilege taxes against persons on account of their business and other activities in the State measured by the application of rates against values of products, gross proceeds of sales, …

§237-13.5 Assessment on generated electricity. Any other provision of the law to the contrary notwithstanding, the levy and assessment of the general excise tax on the gross proceeds from the sale of electric power to a public utility company for resale to the public, shall be ma…

[§237-13.8] Sales of telecommunications services through prepaid telephone calling service. (a) For the purposes of this section, "prepaid telephone calling service" means the right to exclusively purchase telecommunication services, paid for in advance, that enables the originat…

§237-14 Segregation of gross income, etc., on records and in returns. The imposition of taxes and the application of tax rates do not depend upon the business in which the taxpayer is primarily engaged. One business may be subject to two or more tax rates. If a business is within…

§237-14.5 Segregation of gross income, etc., on records and in returns of telecommunications businesses. (a) Notwithstanding section 237-14, any person engaged in the business of selling interstate or foreign common carrier telecommunications services taxable under section 237-13…

§237-15 Technicians. When technicians supply dentists or physicians with dentures, orthodontic devices, braces, and similar items which have been prepared by the technician in accordance with specifications furnished by the dentist or physician, and such items are to be used by t…

§237-16.5 Tax on written real property leases; deduction allowed. (a) This section relates to the leasing of real property by a lessor to a lessee. There is hereby levied, and shall be assessed and collected annually, a privilege tax against persons engaging or continuing within …

[§237-16.8] Exemption of certain convention, conference, and trade show fees. In addition to any other applicable exemption provided under this chapter, there shall be exempted from the measure of taxes imposed by this chapter all of the value or gross income derived by a fratern…

§237-17 Persons with impaired sight, hearing, or who are totally disabled. Anything in section 237-13 to the contrary notwithstanding, the privilege tax levied, assessed, and collected on account of the business or other activities of individuals who are blind, deaf, or totally d…

§237-18 Further provisions as to application of tax. (a) Where a coin operated device produces gross income which is divided between the owner or operator of the device, on the one hand, and the owner or operator of the premises where the device is located, on the other hand, the…

§237-2 "Business", "engaging" in business, defined. As used in this chapter: "Business" includes all activities (personal, professional, or corporate) engaged in or caused to be engaged in with the object of gain or economic benefit either direct or indirect, but does not include…

[§237-2.5] Engaging in business in the State. A person is engaging in business in the State, whether or not the person has a physical presence in the State, if in the current or immediately preceding calendar year:

§237-20 Principles applicable in certain situations. A person or company having shareholders or members (a corporation, association, group, trust, partnership, joint adventure, or other person) is taxable upon its business with them, and they are taxable upon their business with …

§237-21 Apportionment. If any person, other than persons liable to the tax on manufacturers as provided by section 237-13(1), is engaged in business both within and without the State or in selling goods for delivery outside the State, and if under the Constitution or laws of the …

§237-22 Conformity to Constitution, etc. (a) In computing the amounts of any tax imposed under this chapter, there shall be excepted or deducted from the values, gross proceeds of sales, or gross income so much thereof as, under the Constitution and laws of the United States, the…

§237-23 Exemptions, persons exempt, applications for exemption. (a) This chapter shall not apply to the following persons: (b) The exemptions enumerated in subsection (a)(3) to (7) shall apply only: (c) To obtain allowance of an exemption: (d) For all persons, the statement regis…

§237-23.5 Related entities; common paymaster; certain exempt transactions. (a) This chapter shall not apply to amounts received, charged, or attributable to services furnished by one related entity to another related entity or to imputed or stated interest attributable to loans, …

§237-24 Amounts not taxable. This chapter shall not apply to the following amounts:

§237-24.3 Additional amounts not taxable. In addition to the amounts not taxable under section 237-24, this chapter shall not apply to:

§237-24.5 Additional exemptions. (a) In addition to the amounts exempt under section 237-24, this chapter shall not apply to amounts received by: (b) As used in this section: "Exchange" means an exchange or board of trade as defined in 15 United States Code section 78c(a)(1) or i…

§237-24.7 Additional amounts not taxable. In addition to the amounts not taxable under section 237-24, this chapter shall not apply to:

§237-24.75 Additional exemptions. In addition to the amounts exempt under section 237-24, this chapter shall not apply to:

§237-24.8 Amounts not taxable for financial institutions. (a) In addition to the amounts not taxable under section 237-24, this chapter shall not apply to amounts received by: (b) As used in this section: "Activities relating to the general servicing of fiduciary or custodial acc…

§237-24.9 Aircraft service and maintenance facility. (a) This chapter shall not apply to amounts received from the servicing and maintenance of aircraft or from the construction of an aircraft service and maintenance facility in the State. (b) As used in this section: "Aircraft" …

§237-25 Exemptions of sales and gross proceeds of sales to federal government, and credit unions. (a) Any provision of law to the contrary notwithstanding, there shall be exempted from, and excluded from the measures of, the tax imposed by chapter 237 all sales, and the gross pro…

§237-26 Exemption of certain scientific contracts with the United States. (a) Any provision of law to the contrary notwithstanding, there shall be exempted from the measure of the taxes imposed by chapter 237, all of the gross proceeds derived by a contractor or subcontractor ari…

§237-27 Exemption of certain petroleum refiners. (a) As used in this section: "Petroleum products" means petroleum; any distillate, fraction, or derivative of petroleum; natural gas or its components; gas manufactured from a petroleum product; and any product derived from the gas…

§237-27.5 Air pollution control facility. (a) As used in this section, "air pollution control facility" shall mean a new identifiable treatment facility, equipment, device, or the like, which is used to abate or control atmospheric pollution or contamination by removing, reducing…

§237-27.6 Solid waste processing, disposal, and electric generating facility; certain amounts exempt. (a) Any provision of the law to the contrary notwithstanding, there shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the amounts…

[§237-28.1] Exemption of certain shipbuilding and ship repair business. There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds arising from shipbuilding and ship repairs rendered to surface vessels federally own…

§237-29 Exemptions for certified or approved housing projects. (a) All gross income received by any qualified person or firm for the planning, design, financing, construction, sale, or lease in the State of a housing project that has been certified or approved under section 201H-…

§237-29.5 Exemption for sales of tangible personal property shipped out of the State. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the value or gross proceeds arising from the manufacture, production, or sale of tang…

§237-29.53 Exemption for contracting or services exported out of State. (a) There shall be exempted from, and excluded from the measure of, taxes imposed by this chapter, all of the value or gross income derived from contracting (as defined under section 237-6) or services perfor…

[§237-29.55] Exemption for sale of tangible personal property for resale at wholesale. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or gross income arising from the sale of tangible personal proper…

[§237-29.57] Exemption for intangible property used outside the State. (a) All of the value or gross proceeds arising from the use of intangible property outside the State shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter. (b) For the pur…

[§237-29.7] Exemption of insurance companies. This chapter shall not apply to the gross income or gross proceeds of insurance companies authorized to do business under chapter 431; except this exemption shall not apply to any gross income or gross proceeds received after December…

[§237-29.8] Call centers; exemption; engaging in business; definitions. (a) This chapter shall not apply to amounts received from a person operating a call center by a person engaged in business as a telecommunications common carrier for interstate or foreign telecommunications s…

§237-3 "Gross income", "gross proceeds of sale", defined. (a) "Gross income" means the gross receipts, cash or accrued, of the taxpayer received as compensation for personal services and the gross receipts of the taxpayer derived from trade, business, commerce, or sales and the v…

RETURNS AND PAYMENTS §237-30 Monthly, quarterly, or semiannual return, computation of tax, payment. (a) The taxes levied hereunder shall be payable in monthly installments on or before the twentieth day of the calendar month following the month in which they accrue. The taxpayer,…

§237-30.5 Collection of rental by third party; filing with department; statement required. (a) Every person authorized under an agreement by the owner of real property located within this State to collect rent on behalf of the owner shall be subject to this section. (b) Every wri…

[§237-30.7] Withholding of tax by persons claiming the motion picture, digital media, and film production income tax credit. (a) Every person making payment to a loan-out company and claiming a tax credit pursuant to section 235-17 shall deduct and withhold an amount equal to the…

§237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its…

§237-32 Penalties. Penalties and interest shall be added to and become a part of the tax, when and as provided by section 231-39. [L 1935, c 141, pt of §13; am L 1941, c 265, §8; RL 1945, §5463; am L 1945, c 253, §5; am L 1953, c 125, §10; RL 1955, §117-27; HRS §237-32]

§237-33 Annual return, payment of tax. On or before the twentieth day of the fourth month following the close of the taxable year, each taxpayer shall make a return showing the value of products, gross proceeds of sales or gross income, and compute the amount of tax chargeable ag…

[§237-33.5] Federal assessments; adjustments of gross income or gross proceeds of sale; report to the department. (a) Any person required to report to the department by section 235-101(b), also shall report to the department any change, correction, adjustment, or recomputation of…

§237-34 Filing of returns; disclosure of returns unlawful, penalty; destruction of returns. (a) All monthly and annual returns shall be transmitted in the form and manner prescribed by the department. (b) All tax returns and return information required to be filed under this chap…