Property factor; property used for the production of business income

# (a)

Property shall be included in the property factor if it is actually used or is available for or capable of being used during the tax period in the regular course of the trade or business of the taxpayer.

# (b)

Property held as reserves or standby facilities or property held as a reserve source of materials shall be included in the factor. For example, a plant temporarily idle or raw material reserves not currently being processed are includable in the factor.

# (c)

Property or equipment under construction during the tax period (except inventoriable goods in process) shall be excluded from the factor until that property is actually used in the regular course of the trade or business of the taxpayer. If the property is partially used in the regular course of the trade or business of the taxpayer while under construction, the value of the property to the extent used shall be included in the property factor.

# (d)

Property used in the regular course of the trade or business of the taxpayer shall remain in the property factor until its permanent withdrawal is established by an identifiable event such as its conversion to the production of nonbusiness income, its sale, or the lapse of an extended period of time during which the property is held for sale.

Last amended: [Eff 11/25/94] (Auth: HRS §§231-3(9), 235-118) (Imp: HRS §235-30) Property factor; consistency in reporting. (a) In filing returns with this State, if HRS §235-30 §18-235-30-03 the taxpayer departs from or modifies the manner of valuing property, or of excluding or including property in the property factor, used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. (b) If the returns or reports filed by a taxpayer wi

Source: view the official PDF

In this chapter (40 sections)

Full table of contents →