HAR § 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

(ii) Outer-jurisdictional 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 in the ratio that the value of the property attributable to its use by the taxpayer in business activities in Hawaii bears to the total value of the property attributable to its use in the taxpayer’s business activities everywhere. The value of outer-jurisdictional property to be attributed to the numerator of the property factor of Hawaii shall be determined by the ratio that the number of uplinks and downlinks (sometimes referred to as “half-circuits”) that were used during the tax period to transmit from Hawaii and to receive in Hawaii any data, voice, image, or other information bears to the total number of uplinks and downlinks, or half-circuits, that the taxpayer used for transmissions everywhere. If information regarding uplink and downlink or half-circuit usage is not available, or if that measurement of activity is not applicable to the type of outer-jurisdictional property used by the taxpayer, the value of such property to be attributed to the numerator of the property factor of Hawaii shall be determined by the ratio that the amount of time (in terms of hours and minutes of use), or any other measurement of use of outer-jurisdictional property that was used during the tax period to transmit from Hawaii and to receive in Hawaii any data, voice, image, or other information, bears to the total amount of time or other measurement of use that was used for transmissions everywhere. (iii) Outer-jurisdictional property shall be considered to have been used by the taxpayer in its business activities within Hawaii when that property, wherever located, is employed by the taxpayer in any manner in the publishing, sale, licensing, or other distribution of books, newspapers, magazines, or other printed material and any data, voice, image, or other information is transmitted to or from Hawaii either through an earth station or terrestrial facility located in Hawaii. Example: One example of the use of outer-jurisdictional property is where the taxpayer either owns its own communications satellite or leases the use of uplinks, downlinks, circuits, or time on a communications satellite for the purpose of sending messages to its newspaper printing facilities or employees in a state. The state or states in which any printing facility that receives the satellite communications is located and the state from which the communications were sent, under this section, would apportion the cost of the owned or rented satellite to their respective property factors based upon the ratio of the in-state use of the satellite to its total usage everywhere. Assume that ABC Newspaper Co. owns a total of $400,000,000 of property everywhere and that, in addition, it owns and operates a communication satellite for the purpose of sending news articles to its printing plant in Hawaii, as well as for communicating with its printing plants and facilities or news bureaus, employees, and agents located in other states and throughout the world. Also assume that the total value of its real and tangible personal property that was permanently located in Hawaii for the entire income year was valued at $3,000,000. Assume also that the total original cost of the satellite is $100,000,000 for the tax period and that of the 10,000 uplinks and downlinks of satellite transmissions used by the taxpayer during the tax period, 200 or 2 per cent are attributable to satellite communications received in and sent from Hawaii. Assume further that the company’s mobile property has an original cost of $4,000,000 and was used in Hawaii for 95 days. The property factor is determined as follows: V alue of property permanently in Hawaii: $3,000,000 Value of mobile property (95/365 x $4,000,000): 1,041,096 Value of satellite property used in-state (.02 x $100,000,000): 2,000,000