HRS § 239-6 — Airlines, certain carriers


§239-6 Airlines, certain carriers.
(a) There shall be levied and assessed upon each airline a tax of four per
cent of its gross income each year from the airline business; provided that if
an airline adopts a rate schedule for students in grade twelve or below
traveling in school groups providing such students at reasonable hours a rate
less than one-half of the regular adult fare, the tax shall be three per cent
of its gross income each year from the airline business.
(b) There shall be levied and assessed upon
each motor carrier, each common carrier by water, and upon each contract
carrier other than a motor carrier, a tax of four per cent of its gross income
each year from the motor carrier or contract carrier business.
(c) The tax imposed by this section is a means
of taxing the personal property of the airline or other carrier, tangible and
intangible, including going concern value, and is in lieu of the tax imposed by
chapter 237 but is not in lieu of any other tax.
(d) Notwithstanding subsections (a), (b), and
(c), the rate of tax upon the portion of the gross income of a motor carrier
which consists of the receipts from the sale of its products or services to a
contractor shall be one-half of one per cent; provided that there is a resale
of the products or services and the resale by the contractor is subject to
taxation at the highest rate under section 237-13; the gross income of the
motor carrier is not divided as provided in the definition of "gross
income" in section 239-2 for the tax imposed under this chapter or chapter
237; and the gross income of the motor carrier from the sale of its products or
services to the contractor is not subject to a deduction under chapter 237 by
the contractor; and in the case of services provided by the motor carrier, the
benefit of the service passes to the customer of the contractor as an
identifiable element of the contracting or service provided by the contractor
and does not constitute overhead as defined in section 237-1.
For purposes of this subsection,
"contractor" has the same meaning as defined in section 237-6.
(e) Notwithstanding subsections (a) through
(d), beginning on October 1, 2001, the tax under this chapter shall not apply
to airlines, motor carriers, common carriers by water, and contract carriers
other than motor carriers; provided that the gross income received on or after
October 1, 2001, by these carriers shall be subject to the tax imposed under
chapter 237. For the taxable year in which October 1, 2001 occurs, the tax
imposed and due under this chapter for the affected carriers shall be abated in
an amount equal to:
(1) The tax imposed on the first day of the
taxpayer's taxable year in which October 1, 2001 occurs;
(2) Divided by the number of months in the taxpayer's
affected taxable year; and
(3) Multiplied by the number of months in the
taxpayer's taxable year remaining after September 30, 2001.