HRS § 235-25 — Rents; royalties


§235-25 Rents; royalties. (a) Net
rents and royalties from real property located in this State are allocable to
this State.
(b) Net rents and royalties from tangible
personal property are allocable to this State:
(1) If and to the extent that the property is
utilized in this State, or
(2) In their entirety if the taxpayer's commercial
domicile is in this State and the taxpayer is not organized under the laws of
or taxable in the state in which the property is utilized.
(c) The extent of utilization of tangible
personal property in a state is determined by multiplying the rents and
royalties by a fraction, the numerator of which is the number of days of
physical location of the property in the state during the rental or royalty
period in the taxable year and the denominator of which is the number of days
of physical location of the property everywhere during all rental or royalty
periods in the taxable year. If the physical location of the property during
the rental or royalty period is unknown or unascertainable by the taxpayer,
tangible personal property is utilized in the state in which the property was
located at the time the rental or royalty payer obtained possession.