HRS § 239-9 — Time of application of tax and other provisions


§239-9 Time of application of tax and other
provisions. (a) In general. The tax imposed by this chapter applies to
every public service company:
(1) Which is in business at the commencement of a
calendar year, as of January 1 of that year;
(2) Which begins business after the commencement of a
calendar year, as of the commencement of business.
(b) Third year of doing business; earlier
years, how governed. If the company is in business at the commencement of the
calendar year, and was in business during the whole of the preceding year and
prior thereto, the tax shall be returned and paid as provided in sections 239-4
and 239-7.
However, if subsection (a)(2) applies, or if
the company though in business at the commencement of the calendar year was not
in business during the preceding year, or was in business during the preceding
year or a part thereof but not prior thereto, the tax shall be returned and
paid as provided in subsections (c) and (d).
(c) First year of doing business. The measure
of the tax for the year in which the company begins business is an estimate of
the gross income of the public service company for that year or for the part of
that year in which it is in business.
The tax thereon for the year in which the
company begins business shall be at the following rate:
(1) If subsection (a)(2) applies, at the rate of four
per cent, or
(2) If subsection (a)(1) applies but the company
though in business at the commencement of the calendar year was not in business
during any part of the preceding year, the tax shall be at the rate provided by
sections 239-5 and 239-6, except that there shall be no adjustment of the rate
of tax on account of the ratio of the net income to the gross income being in
excess of fifteen per cent and it shall be assumed for purposes of this
subsection and subsection (e) that the ratio is fifteen per cent or less.
The estimate shall be made and the tax returned
on or before the twentieth day of the third month after the month in which the
company begins business and shall be subject to adjustment by the filing of an
amended return as provided in subsection (e). Payment of the tax shall
accompany the return unless time for payment is extended by the director of
taxation. The extension may be granted by the director in order to provide for
payment of the tax in installments during the remainder of the taxable year.
(d) Second year of doing business. The
measure of the tax for the year following the year in which the company began
business is an estimate of the average gross income for a taxable year, subject
to adjustment by the filing of an amended return as provided in subsection
(e). The estimate shall be made and the tax returned and paid at the times
provided for other companies which are in business at the commencement of the
calendar year. The tax thereon shall be at the rate provided by sections 239-5
and 239-6, except that there shall be no adjustment of the rate of tax on
account of the ratio of the net income to the gross income being in excess of
fifteen per cent and it shall be assumed for purposes of this subsection and
subsection (e) that the ratio is fifteen per cent or less.
(e) Adjustment of estimates. An amended
return shall be filed after the close of the applicable taxable year for each
year for which an estimated tax return was filed under subsection (c) or (d).
If the year for which the estimate is made is
the year in which the company commenced doing business and subsection (c)
applies, any variance between the estimate and the actual gross income for that
year shall be adjusted and a credit or refund made, or payment of additional
tax due, depending upon whether the estimate was in excess of, or less than,
the actual gross income of the company for that year.
If the year for which the estimate is made is
the year following the year in which the company commenced doing business and
subsection (d) applies, the average monthly gross income during the period from
and after the commencement of business to the close of the year for which the
estimate was made shall be determined and multiplied by twelve. Any variance
between the estimate and the amount so computed shall be adjusted and a credit
or refund made, or payment of additional tax due, depending upon whether the
estimate was in excess of, or less than, the amount computed.
The amended return shall be made and filed and
any additional tax due paid on or before the twentieth day of the fourth month
following the close of the taxable year in which the company commenced
business.
The adjustment of the tax imposed under this
chapter and the making of an amended return as provided under this section
shall apply only to the first and second taxable years of doing business.
(f) Acquisition of business of another
company. Whenever any public service company subject for any year to the tax
imposed by this chapter, shall have acquired by purchase or otherwise during
the preceding year the business or any part thereof of another public service
company liable to tax under this chapter for the preceding year but not liable
for the year following the sale or disposition, and the acquiring company
continues the operation of the business so acquired, the gross income to be
reported by the acquiring company for the purpose of determining the amount of
its tax under this chapter for the year following the year in which the
business was so acquired shall include, in addition to the gross income of the
acquiring company during the year ending December 31 or fiscal year preceding,
whichever is applicable, the gross income of the business or part thereof so
acquired for the portion of the preceding year as the business was not operated
by the acquiring company.
This subsection shall not apply to any company
whose tax for the year involved is measured under subsection (c) by an estimate
of gross income for the year subject to adjustment after the close of the year.
If the first paragraph of this subsection
applies but the tax of the acquiring company for the year is governed by
subsection (d) and adjusted under subsection (e), then in determining the
average monthly gross income for that purpose there shall be included, in
addition to the gross income of the acquiring company for the period involved
in the determination of the average, the gross income of the business or part
thereof acquired by the company for the portion of that period in which the
business was not operated by the acquiring company.
(g) Consolidation or merger. Whenever there
is a consolidation or merger of public service companies, liability to the tax
imposed by this chapter shall attach to the company thus formed and the gross
income which shall be used for measuring the tax of the company thus formed
shall include the gross income of the companies which were consolidated or
merged.