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Hawaii Administrative Rules Title 18 — Department of Taxation
516 sections.
Chapter 18 — 231 — Administration of Taxes
Chapter 18 — 234 — Tax Credit for Heat Pumps (legacy)
Chapter 18 — 235 — Income Tax Law
- 18-235-1 (Amended and Renumbered Repealed
- 18-235-1.01 Resident/Nonresident, defined
- 18-235-1.02 Residency, generally
- 18-235-1.03 Establishing residency by domicile
- 18-235-1.04 Domicile by birth
- 18-235-1.05 SUBCHAPTER 1 GENERAL PROVISIONS HRS §235-1 §18-235-1 Amended and renumbered Repealed
- 18-235-1.06 The individual may then voluntarily establish the place of the individual’s domicile wherever he or she may be
- 18-235-1.07 Establishing residency by residing in the State
- 18-235-1.08 Residence status, factors considered
- 18-235-1.09 Individual’s presence or absence in compliance with military or naval orders, HRS §235-1 while engaged in aviation or navigation, or while a student
- 18-235-1.10 Aliens
- 18-235-1.11 Example 3: Q accepted a tenure track position at the University of Hawaii, and arrived to begin employment on August 1, 1996
- 18-235-1.14 (2) Is unable to engage in any substantial gainful business or occupation because of that disability
- 18-235-1.15 Permanent total disability; submission of certification
- 18-235-2.2 (Reserved) HRS §235-2 Repealed
- 18-235-2.3 Conformance to the federal Internal Revenue Code
- 18-235-3 (Reserved) HRS §235-3 §18-235-3-01 Distribution of credit for partnerships, S corporations, estates, and trusts Repealed
- 18-235-3-01 Distribution of credit for partnerships, S corporations, estates, and trusts
- 18-235-4 Amended and renumbered §18-235-4-01, §18-235-4-02, §18-235-4-03, §18-235-4- 04, §18-235-4-05, §18-235-4-06, §18-235-4-07, §18-235-4-08 Repealed
- 18-235-4-01 Income taxes by the State; residents, nonresidents, corporations, estates and trusts
- 18-235-4-02 Residents taxable on entire income
- 18-235-4-03 Nonresidents taxable on Hawaii income
- 18-235-4-04 Otherwise, a nonresident shall determine Hawaii source income by allocation and separate accounting pursuant to section 235-5, HRS, and section 18-235-5-02
- 18-235-4-05 Corporations; domestic and foreign
- 18-235-4-06 HRS §235-4 §18-235-4-06 Resident and nonresident estates, trusts, and beneficiaries
- 18-235-4-07 Resident and nonresident partners of a partnership
- 18-235-4-08 Source of income
- 18-235-5 Amended and renumbered §18-235-5-01, §18-235-5-02, §18-235-5-03, §18-235-5- 04 Repealed
- 18-235-5-01 Allocation of income of persons not taxable upon their entire income
- 18-235-5-02 Allocation and separate accounting
- 18-235-5-03 Deductions connected with gross income from Hawaii sources
- 18-235-5-04 Allocation of income and deductions among taxpayers
- 18-235-5-05 (B) While the individual was a resident
- 18-235-5.5 Individual housing accounts (IHA)
- 18-235-6 (3) A transfer shall qualify under this section if the entire interest in the housing account is transferred to a new housing account and the original account is closed and terminated
- 18-235-7 (Amended and Renumbered Repealed
- 18-235-7-01 Exclusion of income nontaxable under the Constitution or laws of the United States
- 18-235-7-02 Exclusion of benefits under public retirement systems
- 18-235-7-03 Upon retirement on January 1, 1993, Ms
- 18-235-7-14 (Reserved) HRS §235-7(d) §18-235-7-15 Net operating loss deduction Repealed
- 18-235-7-15 Net operating loss deduction
- 18-235-11 (Reserved) HRS §235-12 §18-235-12 Solar energy devices; income tax credit Repealed
- 18-235-12 Solar energy devices; income tax credit
- 18-235-12.2 Energy conservation devices for hot water heaters; income tax credit
- 18-235-12.5-01 Definitions
- 18-235-12.5-02 (Reserved Repealed
- 18-235-12.5-03 Other Solar Energy Systems
- 18-235-12.5-04 Example 5: During March of a taxable year, Taxpayer installs and places into service solar energy equipment including 10 photovoltaic panels, each of which has an output capacity (maximum power) of 0
- 18-235-12.5-05 Example 1: Assume Taxpayer installs and places into service a wind farm that services one community of 50 single-family homes and 10 separate commercial properties
- 18-235-12.5-06 Application of sections 18-235-12
- 18-235-13 (Reserved) HRS §235-17 §18-235-17-01 Definitions Repealed
- 18-235-17-01 Definitions
- 18-235-17-02 Motion picture, digital media, and film production income tax credit; allowed
- 18-235-17-03 Claim for credit; procedures; production reports; multiple entities involved
- 18-235-17-04 Claim for credit; aggregate cap; tentative allocation and certification of credit
- 18-235-17-05 Claim for credit; costs incurred in more than one calendar year
- 18-235-17-06 Claiming the credit; timing; twelve-month rule
- 18-235-17-07 Qualified productions; $200,000 threshold determination
- 18-235-17-08 Example 1: J3T Productions is a calendar year taxpayer and begins producing its film in the State on January 1, 2020
- 18-235-17-09 Prorating qualified production costs between counties in Hawaii; airfare and shipping costs
- 18-235-17-10 Qualified production costs; generally
- 18-235-17-11 HRS §235-17 §18-235-17-11 Qualified production costs; credit calculation for certain equipment costs
- 18-235-17-12 Qualified production costs; imported goods, services, or contracting subject to the use tax; claim for products or services acquired outside of this State
- 18-235-17-13 Qualified production costs; premiums paid to insurers subject to tax under HRS §235-17 chapter 431, HRS
- 18-235-17-14 Verification review of motion picture, digital media, and film production income tax credit claims
- 18-235-17-15 Hawaii promotion; shared-card, end-title screen credit
- 18-235-17-16 Evidence of reasonable efforts to hire local talent and crew
- 18-235-17-17 Evidence of financial or in-kind contributions to educational or workforce development for the local film, television, and digital media industry
- 18-235-17-18 Production company personnel and contractors; required Hawaii tax notice
- 18-235-17-19 Access to production company set and locations; required courtesy visit and press coverage
- 18-235-20.5-01 Fees for issuing comfort letters, certificates under section 235-110
- 18-235-21-01 (Reserved Repealed
- 18-235-21-02 Two or more businesses of a single taxpayer
- 18-235-21-03 Example 5: The taxpayer operates a multistate chain of grocery stores
- 18-235-21-04 Proration of deductions
- 18-235-22-01 Definitions
- 18-235-22-02 Apportionment
- 18-235-22-03 Combined reporting method; combined return
- 18-235-22-04 Allocation
- 18-235-22-05 Consistency and uniformity in reporting
- 18-235-23-01 Taxable in another state; in general
- 18-235-23-02 When a taxpayer is subject to a tax under section 235-23(1), HRS
- 18-235-23-03 When a state has jurisdiction to subject a taxpayer to a net income tax
- 18-235-28 (Reserved Repealed
- 18-235-29-01 Apportionment formula
- 18-235-29-02 Apportionment formula; denominator of zero
- 18-235-29-03 Apportionment for installment sales
- 18-235-29-04 Apportionment formula as applied to partnerships
- 18-235-30-01 Example: Corporation A’s distributive share of income in partnership P is 20 per cent
- 18-235-30-02 Property factor; property used for the production of business income
- 18-235-30-03 Property factor; consistency in reporting
- 18-235-30-04 Property factor; numerator
- 18-235-30-05 Special rules; property factor
- 18-235-31-01 Property factor; valuation of owned property
- 18-235-31-02 (b) Property in transit between locations of the taxpayer to which it belongs shall be considered to be at the destination for purposes of the property factor
- 18-235-31-03 Property factor; special rules
- 18-235-32-01 Example 1: A taxpayer, pursuant to the terms of a lease, pays the lessor $12,000 a year rent plus taxes in the amount of $2,000 and interest on a mortgage in the amount of $1,000
- 18-235-33-01 HRS §235-33 §18-235-33-01 Payroll factor; in general
- 18-235-33-02 Payroll factor; denominator
- 18-235-33-03 Payroll factor; numerator
- 18-235-34-01 Payroll factor; compensation paid in this State
- 18-235-35-01 HRS §235-33 §18-235-33-03 Payroll factor; numerator
- 18-235-35-02 (6) If a taxpayer derives receipts from the sale of equipment used in its business, those receipts constitute sales
- 18-235-35-03 Sales factor; numerator
- 18-235-35-04 Sales factor; special rules
- 18-235-35-05 Sales factor; no effect on warehousing exemption
- 18-235-36-01 Sales factor; sales of tangible personal property in this State
- 18-235-36-02 Sales factor; sales of tangible personal property to United States Government in this State
- 18-235-37-01 Sales factor; sales other than sales of tangible personal property in this State
- 18-235-38-01 Equitable adjustment of apportionment formula
- 18-235-38-02 Special rules; property factor
- 18-235-38-03 HRS §235-38 §18-235-38-03 Special rules; sales factor
- 18-235-38-04 Allocation of income and deductions among taxpayers
- 18-235-38-05 Apportionment method considered method of accounting
- 18-235-38.5-01 Total value of property attributable to state: $6,041,096 Property factor ($6,041,096/$500,000,000) 0
- 18-235-38.5-02 Exclusion of income, property, payroll, and sales of foreign affiliates
- 18-235-38-06 Apportionment of income for special industries
- 18-235-38-06.01 Apportionment of income for ocean carriers
- 18-235-38-06.02 Apportionment of income for air carriers
- 18-235-38-06.03 Construction contractors
- 18-235-38-06.04 Less: Total expenditures to date 300,000 Apportionable income $ 50,000 [Eff 3/11/96] (Auth: HRS §§231-3(9), 235-38, 235-118) (Imp: HRS §235-38) §18-235-38-06
- 18-235-38-06.05 (i) All real and tangible personal property owned or rented by the taxpayer and used in Hawaii during the tax period shall be included in the numerator of the property factor
- 18-235-51 (Reserved Repealed
- 18-235-52 Tax in case of joint return of spouses or the return of a surviving spouse
- 18-235-53 Tax tables for individuals
- 18-235-54 Exemptions
- 18-235-55 (1) Taxes paid to a foreign jurisdiction qualify for Hawaii income tax credit under section 235- 55, HRS, and this section, if the taxpayer can show that: (A) The taxpayer is liable for and has paid tax to the foreign jurisdiction
- 18-235-55.5 Repealed Repealed
- 18-235-55.6 (Reserved Repealed
- 18-235-55.7 Income tax credit for low-income household renters
- 18-235-55.8 Food/excise tax credit
- 18-235-61 Amended and renumbered §18-235-61-01 to §18-235-61-14 Repealed
- 18-235-61-01 Deduction and withholding of income tax; in general
- 18-235-61-02 Definitions
- 18-235-61-03 (2) Additionally, the director finds withholding from the following payments to be unduly onerous or impracticable of enforcement
- 18-235-61-04 Services performed by employees within and without the State
- 18-235-61-05 A notice of the department’s determination shall be effective for the first payment of wages made on or after the first day of the calendar month which is at least thirty days after notice from the department is received
- 18-235-61-06 Amount of tax to be withheld
- 18-235-61-07 Additional withholding by agreement permissible
- 18-235-61-08 (3) If a separate form is used, it must include any wages subject to withholding (or payments under a wage continuation plan) not reported on Form HW-2 or forms prescribed by the department and filed with the director or designee
- 18-235-61-09 Withholding exemptions
- 18-235-61-10 (c) No Form HW-4 in effect
- 18-235-61-11 Taxation district in which to file
- 18-235-61-12 Statutory period
- 18-235-61-13 Records
- 18-235-61-14 Change of ownership; transfer of business; employer going out of business
- 18-235-65 (Reserved) §18-235-66 Further withholdings at source; crediting of withheld taxes Repealed
- 18-235-66 Further withholdings at source; crediting of withheld taxes
- 18-235-67 (Reserved Repealed
- 18-235-71 Tax on corporations; rates; credit of shareholder of regulated investment company
- 18-235-72 (Reserved) SUBCHAPTER 5 (RESERVED) SUBCHAPTER 6 RETURNS AND PAYMENTS; ADMINISTRATION HRS §235-92 §18-235-92 Returns, who shall make Repealed
- 18-235-92 SUBCHAPTER 4 CORPORATION INCOME TAX HRS §235-71 §18-235-71 Tax on corporations; rates; credit of shareholder of regulated investment company
- 18-235-93 Joint returns
- 18-235-94 Estate and trust returns
- 18-235-94.5 (Reserved) §18-235-95 Partnership returns Repealed
- 18-235-95 Partnership returns
- 18-235-96 HRS §235-96 §18-235-96 Returns by persons making payments
- 18-235-96.5 (Reserved) HRS §235-97 §18-235-97 Estimates; tax payments; returns Repealed
- 18-235-97 (3) Place for filing estimated tax return; payment of estimated tax
- 18-235-98 Returns; form, verification and authentication, time of filing
- 18-235-99 Place and time of filing returns
- 18-235-101 (Reserved) §18-235-110 Repealed
- 18-235-102 Records and special returns
- 18-235-108 (Reserved) HRS §235-109 §18-235-109 Jeopardy assessments, security for payments, etc Repealed
- 18-235-109 Jeopardy assessments, security for payments, etc
- 18-235-110.5 (Reserved) Fuel tax credit for commercial fishers Repealed
- 18-235-110.6 Example 1: Taxpayer uses a pickup truck to deliver fish to market
- 18-235-110.7-01 Definitions
- 18-235-110.7-02 Allowance of the credit
- 18-235-110.7-03 Property eligible for the credit
- 18-235-110.7-04 Section 38 property
- 18-235-110.7-05 New section 38 property
- 18-235-110.7-06 Used section 38 property
- 18-235-110.7-07 Purchase
- 18-235-110.7-08 Placed in service
- 18-235-110.7-09 Purchased and placed in service
- 18-235-110.7-10 Determination of amount of credit
- 18-235-110.7-11 Basis of eligible property
- 18-235-110.7-12 Amount of credit allowable and claimed is treated as a taxable income item, or the basis of eligible property for depreciation or ACRS purposes is reduced by the amount of credit allowable and claimed
- 18-235-110.7-13 Recapture of credit under section 235-110
- 18-235-110.7-14 Recapture percentage
- 18-235-110.7-15 Recapture event (i
- 18-235-110.7-16 Exceptions to the recapture rule
- 18-235-110.7-17 Recapture limitation
- 18-235-110.7-18 Refund
- 18-235-110.7-19 Carryback and carryover of credit
- 18-235-110.7-20 Filing procedure
- 18-235-110.7-21 Identification of property
- 18-235-110.7-22 (2) The basis of the property; (3) The estimated useful life or recovery period that was assigned to the property to determine eligibility for the credit; and (4) The date the property is disposed of or otherwise ceases to be eligible property
- 18-235-111 Limitation period for assessment, levy, collection, or credit
- 18-235-112 HRS §235-112 (Reserved) Notification required by taxpayer Repealed
- 18-235-113 HRS §235-113 (Reserved) Notification required by taxpayer Repealed
- 18-235-119 (Reserved) S corporations; domestic and foreign Repealed
- 18-235-122 HRS §235-122 apply to this section
Chapter 18 — 237 — General Excise Tax Law
- 18-237-1 Definitions
- 18-237-2 (Reserved) HRS §237-2 HRS §237-3 §18-237-3 “Gross income”, “gross proceeds of sale”, defined Repealed
- 18-237-4-01.01 Even though the boxes and butcher paper are critical elements (i
- 18-237-8 (Reserved) §18-237-8 Repealed
- 18-237-8.6-01 Definitions
- 18-237-8.6-02 Allocation of gross income and gross proceeds from sales of tangible personal property
- 18-237-8.6-03 Allocation of gross income from contracting and services
- 18-237-8.6-04 Repealed Repealed
- 18-237-8.6-05 Allocation of gross income from the rental, lease, or license of tangible and HRS §237-8
- 18-237-8.6-06 Example 2: Taxpayer, located in the Oahu district, is engaged in the business of renting equipment
- 18-237-8.6-07 Repealed Repealed
- 18-237-8.6-08 Allocation of gross income from interest
- 18-237-8.6-09 Allocation of gross income of theaters, amusements, etc
- 18-237-8.6-10 All others
- 18-237-12 SUBCHAPTER 2 LICENSES; TAX; EXEMPTIONS §18-237-9 to §18-237-12 (Reserved) §18-237-13 Amended and renumbered Repealed
- 18-237-13 Amended and Renumbered Repealed
- 18-237-13-01 Tax on manufacturers
- 18-237-13-02 Tax on business of selling tangible personal property; producing
- 18-237-13-02.01 Tax on business of selling tangible personal property by an out-of-state seller, HRS §237-13(2) including drop shipments
- 18-237-13-03 Tax upon contractors
- 18-237-13-04 (Reserved) §18-237-13-05 (Reserved) §18-237-13-06 Repealed
- 18-237-13-06.01 (Reserved Repealed
- 18-237-13-06.05 Tax on service business; fees and commissions received by a director, trustee, executor, or other fiduciary
- 18-237-13-06.11 Tax on service business; tire recapping services
- 18-237-13-06.16 Tax on service business; telecommunication services
- 18-237-13-07 Delta Hawaii Billed Income Industry Apportionment Factor Apportioned Hawaii Income Tax Rate Tax Due $ 2
- 18-237-13-08 HRS §237-13(6) such fiduciary
- 18-237-13-09 Tax on other business
- 18-237-13-10 HRS §237-13(9) devices
- 18-237-15 (Reserved) HRS §237-16 §18-237-16 Tax on certain retailing Repealed
- 18-237-16 Tax on certain retailing
- 18-237-16.5-01 Definitions
- 18-237-16.5-02 Tax on written real property leases; deduction allowed
- 18-237-16.5-03 Deduction for sublease of real property or space
- 18-237-16.5-04 Allocation — sublease of less than one hundred per cent of the real property or space
- 18-237-16.5-05 Allocation - Various real property or space with different rental values; sublease of one hundred per cent of the real property or space
- 18-237-16.5-06 Allocation based upon fair rental value
- 18-237-16.5-07 Burden of proof on the taxpayer
- 18-237-19 (Reserved) HRS §237-20 §18-237-20-01 Reimbursement exemption, in general Repealed
- 18-237-20-01 Reimbursement exemption, in general
- 18-237-20-02 Summary of the rules
- 18-237-20-03 Definitions; generally
- 18-237-20-07 Burden of proof on Taxpayer
- 18-237-28 (Reserved) HRS §237-29 Repealed
- 18-237-29.53-01 Definitions
- 18-237-29.53-02 Example 2: Assume the same facts as in Example 1, except that the contract between World Travel Inc
- 18-237-29.53-03 Contracting
- 18-237-29.53-04 Services related to real property
- 18-237-29.53-05 Services related to tangible personal property
- 18-237-29.53-06 Services provided by a travel agency or tour packager at noncommissioned negotiated contract rates
- 18-237-29.53-07 Example 1: Travel Services Corporation (“TSC”) sells a five-night stay at Luau Loft, a hotel in Hawaii, to Tammy Traveler, a resident of New Jersey
- 18-237-29.53-08 Debt collection services
- 18-237-29.53-09 Services requiring customer to be physically present
- 18-237-29.53-10 Services performed by commissioned agents
- 18-237-29.53-11 Other services
- 18-237-29.53-12 Cancellation and forfeiture charges
- 18-237-29.53-13 Telecommunication services
- 18-237-29.57-01 Exemption for intangible property used outside the State
- 18-237-30 Monthly, quarterly, or semiannual returns
- 18-237-32 (d) If a taxpayer’s request under subsection (b) or (c) is granted, the director shall inform the taxpayer of the effective date
- 18-237-33-01 Annual return
- 18-237-33-02 Short year return; change of ownership or cessation of business
- 18-237-34-01 Repealed Repealed
- 18-237-34-02 Repealed Repealed
- 18-237-34-03 Repealed Repealed
- 18-237-34-04 Repealed Repealed
- 18-237-34-05 Repealed Repealed
- 18-237-34-06 Repealed Repealed
- 18-237-34-07 Repealed Repealed
- 18-237-34-08 Repealed Repealed
- 18-237-34-09 Repealed Repealed
- 18-237-34-10 Repealed Repealed
- 18-237-34-11 Repealed Repealed
- 18-237-34-12 Repealed Repealed
- 18-237-34-13 Persons with a material interest in a tax return
- 18-237-41 Records to be kept; resale certificates
Chapter 18 — 237D — Transient Accommodations Tax
Chapter 18 — 238 — Use Tax Law
Chapter 18 — 241 — Taxation of Banks and Other Financial Corporations
Chapter 18 — 242 — Hotel Construction Tax Credit (legacy)
Chapter 18 — 243 — Fuel Tax Law
Chapter 18 — 245 — Cigarette Tax and Tobacco Tax Law
Chapter 18 — 247 — Conveyance Tax
Chapter 18 — 251 — Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax