HAR § 18-241-4-01 — Apportionment and allocation

(a) Except as otherwise specifically provided, a financial institution whose business activity is taxable both within and without this State shall allocate and apportion its net income as provided in this section. All items of nonbusiness income (income which is not includable in the apportionable income tax base) shall be allocated pursuant to the provisions of part II of chapter 235, HRS. A financial institution organized under the laws of a foreign country, the Commonwealth of Puerto Rico, or a territory or possession of the United States whose effectively connected income (as defined under the Internal Revenue Code) is taxable both within this State and within another state, other than the state in which it is organized, shall allocate and apportion its net income as provided in this section. (b) All business income (income which is includable in the apportionable income tax base) shall be apportioned to this State by multiplying such income by the apportionment percentage. The apportionment percentage is determined by adding the taxpayer’s receipts factor (as described in section 18-241-4-03), property factor (as described in section 18-241-4-04), and payroll factor (as described in section 18-241-4-05) together and dividing the sum by three. If one of the factors is missing, the two remaining factors are added and the sum is divided by two. If two HRS §241-3.5 HRS §241-4