Hawaii Tax News
Volume 3, Number 1

State of Hawaii • Department of Taxation

Electronic Filing Pilot
ProgramO

n January 25, 1999, the Department of
Taxation initiated a pilot program tointroduce electronic filing (ELF) for someof our taxpayers. ELF is a system of hardware, software,and procedures which enables taxpayers to transmit tax
returns electronically through modem transmission
instead of paper returns.
Participants in the pilot ELF program are limited to
payroll service providers who have been authorized by
the Department of Taxation and who already submit
withholding tax payments to the Department throughelectronic funds transfer. In February, certified ELF
payroll providers began filing their 1999 withholding
returns via modem transmission rather than by paper ormagnetic tapes. This marks the first tax type that the
Department is processing through ELF. Other tax types
to be targeted for future ELF offerings are currently
under review. 3

End of the Filing
Season Reminders

Taxpayers are reminded that the deadline forfiling their 1998 Hawaii individual income
tax returns and calendar year-end businessincome tax returns is Tuesday, April 20, 1999. Persons
who cannot complete their State tax return on time should
apply for an automatic extension of time to file theirreturn by completing and filing the appropriate Hawaii
extension form with the Department no later than April
20. Comparable federal extension forms will be acceptedin lieu of the Hawaii extension forms if completed using
amounts for Hawaii income tax purposes. In the title area,
references to "federal" should be crossed out andreplaced with "Hawaii".
Tax returns and extensions must be received by the
Department on or before April 20. However, if mailed
through the U.S. Postal Service, they must be postmarked
by April 20. Taxpayers who mail their tax returns andextensions to the Department must be sure to put
sufficient postage on their envelopes. Mail withinsufficient postage will not be accepted by the

SPRING 1999

Department and will be returned. The new postmark date
will be the date accepted by the Department. Tax returns
and extensions delivered through certain private delivery
services designated by the Internal Revenue Service areconsidered to be timely filed if the records of thedesignated private delivery service show that the tax
returns or extensions were given to the private delivery
service on or before April 20.
Although the U.S. Postal Service will not haveextended hours on April 20, the Department will again
provide curbside service on Oahu for last minute filers.
From 5:00 P.M. to midnight, taxpayers may drive up toeither the Punchbowl or Halekauwila Street sides of the
Princess Ruth Keelikolani Building at 830 Punchbowl
Street where volunteer Department employees will bestationed to accept tax returns and extension requests. 3

New Deputy Director

N

eal Miyahira was appointed to the positionof Deputy Director for the Department of
Taxation on December 16, 1998. For the past
four years, Neal was Deputy Director at the Department
of Budget and Finance. He was involved in all aspects ofbudget and finance - policy, legislation, administration and we are fortunate that Neal has brought that richexperience to the Department of Taxation. 3

IN THIS ISSUE
Electronic Filing Pilot Program. . . . . . . . . . . 1
End of the Filing Season Reminders . . . . . . 1
New Deputy Director . . . . . . . . . . . . . . . . . . 1
The Direct Line. . . . . . . . . . . . . . . . . . . . . . . 2
Use Tax Compliance Projects . . . . . . . . . . . 2
Rules Adopted for Intermediary
Services . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Second Quarter State Tax Collections. . . . . 3
Workshops for School Organizations. . . . . . 3
Hawaii Taxation of Roth IRAs . . . . . . . . . . . 4
Corrections to 1998 Tax Forms . . . . . . . . . . 4
Upcoming Events . . . . . . . . . . . . . . . . . . . . . 5
Recently Issued Tax Publications . . . . . . . . 5
Pending Tax Publications. . . . . . . . . . . . . . . 7

Page 2

Hawaii Tax NewsThe Direct Line F
By Director Ray K. Kamikawa

In January of every year, we
propose to the Legislature ourTax-1 (IRC conformity bill). By
law, we submit to the Legislature
every year a conformity bill which
adopts income, exclusion, anddeduction amounts passed by
Congress in the previous year.
Since Hawaii has its own rates,
credits, and procedures, changes
affecting these items are usually
not appropriate for conformity. Exceptions include theprovision for use of private delivery services for thetimely mailing as timely filing delivery rule, andpermitting the filing of a joint return after the filing ofseparate returns. This year, we propose to adopt two
procedural items adopted by Congress: (1) the more
liberal provisions of the innocent spouse rule, and (2) the
tolling of the statute of limitations in cases of disability.
Aside from these procedural items, most of the otherconformity provisions deal with the technical changes
made by Congress to prior tax law amendments.
As to the other tax law measures making their way
through the Legislature, I have long ago stopped trying
to predict what will pass or fail. My advice to you is thesame as before--try to be as active as possible in theprocess. We are here to assist you if you need any
information about the legislative process and any
specific bill that may be of interest. 3

Use Tax Compliance
Projects

Hawaii’s use tax is one of the least understoodtaxes despite the fact that all taxpayers,
including businesses, who order somethingfrom a mail order catalog or who purchase goods outsideof Hawaii may be subject to this tax. The objective of the
Department of Taxation’s Use Tax Compliance Projects
is to raise people’s awareness of the use tax througheducation and enforcement activities. The following is alisting of the Department’s use tax initiatives:• Self-Assessment Project. This pilot project addresses
the 1/2 percent use tax on imports for resale at retailand involves taxpayers reporting retail sales of morethan $2,000,000, but no use tax on imported property.
• Building Materials/Pre-Fabricated Homes. Overthe past three years, the Department audited 221
building material suppliers, contractors, andSpring 1999

individual taxpayers. Ninety three taxpayers wereassessed additional use tax totaling $291,000 on
imported building materials.
• Aircraft. The Department receives lists of newly
registered aircraft from the Department ofTransportation twice a year. Taxpayers on these lists
who have not reported use tax become audit
candidates. Over the past three years, the Department
audited 38 companies and individuals. Twelve
taxpayers were assessed use tax totaling $401,522 onimported aircraft and parts.
• Watercraft. The Department will examine therecords of the Department of Land and Natural
Resources to determine if any boats were imported.
• Telephone Directories and Marketing Brochures.
Over the past year, the tax returns of publishers of
telephone directories and marketing brochures were
examined. Those who were not reporting use tax wereaudited. One company was assessed $23,713.
• Discount Retail Stores. The tax returns of the
discount stores listed in the yellow pages were
examined. All were reporting use tax. Therefore, noaudits were conducted.
• Motor Vehicles. The Department receives
information on imported motor vehicles from the
Department of Motor Vehicles, from other states(notably Oregon), and from automobile dealersthrough the Department’s courtesy delivery project.
The Department also receives information on
imported foreign vehicles from quarterly U.S.
Customs Reports. Over the past three years, theDepartment collected $371,000 in use taxes on 945
automobiles under these programs.
• U.S. Customs. The Department receives a quarterly
list of goods imported from foreign countries from the(See Use Tax Projects, Page 3)

The Hawaii Tax News is a publication of the State of
Hawaii, Department of Taxation.
Director:
Editors:
Address:
Telephone:
Fax:
Website:Forms by Fax:
Consumer Dial:

Ray K. Kamikawa
Lynne Kuroda & Cathleen Tokishi
Princess Ruth Keelikolani Building
830 Punchbowl Street, Room 220
Honolulu, HI 96813-5094
808-587-1577
808-587-1488
http://www.state.hi.us/tax/tax.html
On Oahu: 587-7572
All Others: 808-678-0522 from yourfax machine808-587-1234 (message 7700)

Spring 1999

Hawaii Tax News

Use Tax Projects(From Page 2)

U.S. Customs. Over the past three years, 27 taxpayers
from this list have been assigned for audit. Thus far,eight cases have been completed, and five taxpayers
were assessed $56,027 in use taxes.
• General Audit Program. Taxpayers who areroutinely selected for an audit are checked for use tax.
• Taxpayer Education. The Department educatestaxpayers on the use tax by conducting practitioners’
workshops, attending public speaking engagements,
airing public service announcements on the radio,
putting on programs on TV (‘Olelo), speaking tonewspaper reporters who have published use tax
articles in the Honolulu Advertiser and Honolulu Star
Bulletin, and providing information such as Tax Facts
No. 95-1.
• Seller’s Collection of the Use Tax. For convenience
to customers and for ease of administration, theDepartment prefers that direct marketers collect andpay the use tax for their customers. Our efforts havebeen quite successful; about 550 direct marketers are
currently registered to collect Hawaii’s use tax.
However, absent federal legislation, this registration
is voluntary, and we cannot force companies with nonexus to collect our use tax. Therefore, we havewritten to our Congressional delegation and areworking with the Multistate Tax Commission to haveCongress enact legislation that would require direct
marketers to collect the use tax for all states. 3

Rules Adopted forIntermediary Services

Effective January 22, 1999, sections
18-237-13(6)-01 to 18-237-13(6)-09, Hawaii
Administrative Rules, were adopted toclarify the application of the general excise tax tointermediary services transactions. The rules
implementing section 237-13(6), Hawaii Revised
Statutes, were based upon case law strictly interpretingthe application of the one-half percent intermediaryservices rate.
One of the requirements for a taxpayer to qualify forthe one-half percent intermediary services rate is that theintermediary must be a "mere conduit" for the taxpayer’s
services. In re Busk Enterprises, 53 Haw. 318 (1972).
The intermediary must not alter, use, or otherwise
consume the taxpayer’s services. The taxpayer’s services
are altered, used, or consumed if the taxpayer’s services
constitute a portion of the total services performed by the

Page 3intermediary for the customer, or if the taxpayer’s
services are incorporated into services performed byother taxpayers for the customer. The rules also clarify
that the intermediary services rate is applicable toprofessionals, based upon the Department’s
long-standing administrative practice.
A new Form G-16, Certificate For The Resale ofServices By a Licensed Intermediary, has beendeveloped by the Department. Form G-16 should besubmitted by the intermediary to the service provider andcertifies that the intermediary will not alter, use, orotherwise consume the service provider’s services. 3

Second Quarter StateTax Collections

During the second quarter of fiscal year 1999,
state tax collections totaled $802 million,
representing a 0.4% increase from the$799.1 million collected during the same period of fiscal
year 1998. Collections of $1,664.9 million for the firsttwo quarters of fiscal year 1999 are 2% higher than the$1,631.5 million collected for the first two quarters oflast fiscal year.
Second quarter general excise and inheritance/estate
tax collections increased by $7.5 million and $5.3
million, respectively from the second quarter of last
fiscal year. While the declaration of estimated taxes forindividuals rose $4.7 million for the second quarter,
payments with returns dropped $2.8 million, withholding
tax on wages fell $2.5 million, and refunds increased $3.6
million, resulting in an overall decrease of $4.2 million
for individual income taxes.
Of the $802 million collected in the second quarter ofthis fiscal year, $692.9 million was deposited into thestate general fund. This compares with $687 million
deposited in the second quarter of last fiscal year for a
0.9% increase. 3

Workshops for School
Organizations

W

orkshops for all public and independent
school organizations were held on Oahu
and all neighbor islands during themonths of December 1998, and January 1999. Director
Ray Kamikawa addressed the income tax and general
excise tax issues concerning PTAs and other schoolorganizations. Jerry Hiromoto, the Internal Revenue(See School Workshops, Page 4)

Page 4

Hawaii Tax News

School Workshops(From Page 3)

Service’s Federal-State Coordinator, also was present to
explain federal procedures and requirements relating to
nonprofit organizations. The Department’s purpose in
conducting these workshops was to heighten theattendees’ awareness and appreciation for the tax issues
that face them. Again, the Department is focusing on
education as a compliance strategy. 3

Hawaii Taxation ofRoth IRAs

Q

uestions have been raised regarding
Hawaii’s tax treatment of Roth IRAs. Hereare some of the commonly asked questions.

Question: For federal income tax purposes, individuals
may elect to include as income on their 1998 return theentire taxable amount rolled over in 1998 from a regular
IRA to a Roth IRA instead of reporting the rollover inequal amounts over a four-year period. Can individuals
make this election on their 1998 Hawaii income tax
return?
Answer: Hawaii has adopted the federal provisions in
the Taxpayer Relief Act of 1997 relating to the Roth IRA.
However, the provision which allows individuals to electto include as income on their 1998 return the entire
taxable amount rolled over in 1998 from a regular IRA
to a Roth IRA is contained in the Internal Revenue
Service Restructuring & Reform Act of 1998 and has notbeen adopted for Hawaii income tax purposes at thepresent time. The Department of Taxation introduced aconformity bill to the 1999 Hawaii Legislature to adopt
certain provisions including the provisions relating to theRoth IRA. An individual may not claim any of thesefederal provisions on their Hawaii income tax return until
they have been enacted by the State of Hawaii. In themeantime, taxpayers may either (1) request an extension
on Form N-101A (or federal Form 4868), or (2) file theirreturn now, then amend the return later.
Question: In 1997, an individual received a lump sum
distribution from an employer-funded profit-sharing
plan upon retirement. The individual did not contributeto the profit-sharing plan. The entire lump sum
distribution was rolled over to an IRA. In 1998, theindividual rolled over $100,000 from the IRA to a Roth
IRA. The entire amount rolled over to the Roth IRA
represents the lump sum distribution received by theindividual upon retirement and earnings thereon. Whatamount would be taxable on the individual’s 1998
Hawaii income tax return?

Spring 1999

Answer: Pursuant to section 18-235-7-03(d)(2), Hawaii
Administrative Rules, when amounts are transferred
directly between plans (e.g., when money is paid into arollover IRA), the recipient plan is treated as acontinuation of the original plan. Since the lump sum
distribution that the individual received upon retirement
qualifies as a pension, the amount rolled over from theregular IRA to the Roth IRA also qualifies as a pension.
Therefore, the amount rolled over to the Roth IRA is
exempt from Hawaii’s income tax. Please note that for
Hawaii income tax purposes, the term "pension" meansa distribution that (1) is paid by reason of retirement,
disability, or death of the employee, (2) is attributable toemployer contributions, and (3) is paid to the employee
or the employee’s spouse upon retirement or disability,
or to a deceased employee’s beneficiary. 3

Corrections to 1998
Tax FormsA

few errors were found on the 1998 Hawaii
tax forms as of March 1, 1999. Please takenote of the following corrections made to the
Hawaii tax forms.
Form N-1A Packet• Due to a printing error by the vendor, the first and last
name of the taxpayer was erroneously reversed andplaced in the wrong boxes on the form. The vendor
reprinted and remailed corrected Form N-1A packets(printed on blue paper) at the end of February.
Taxpayers should use the four blue vouchers in thereprinted packet to file their estimated income tax
payments for 1999.
If taxpayers file the erroneous form, the payment still
will be credited to them; however, there will be a slightdelay in posting the payment to their account due tothe manual correction necessary.
Form N-160, Label Postcard• Center portion of postcard on "How To Get Forms andInstructions" reads, "*Note: CD-ROM has a nominal
fee of $5", should read:"*Note: CD-ROM has a nominal fee of $8"
Form N-196• Below the declaration, the following information is
missing from the form:(Title)(Date)""(Authorized Signature)
Although this information is missing, therequirements as provided on line 8 of the instructions
must still be followed. Form N-196 must be signed
and dated and the authority to sign (title) identified.
(See Tax Form Corrections, Page 5)

Spring 1999

Hawaii Tax News

Tax Form Corrections(From Page 4)

Form N-20 Instructions• Page 4, Line 9, paragraph 1, instructions reads, ". . .
(up to $17,500) . . .", should read:". . . (up to $18,500) . . ."Schedule O (Form N-30)• Line 2 reads, "Dividends from Schedule C, line 8",
should read:"Dividends from Schedule C, line 9"• Line 34 reads, "Total of lines 26 and 33", should read:"Total of lines 24 and 33"
Dual Rate Form TA-12• Page 2, "GRAND TOTAL EXEMPTIONS and/or
DEDUCTIONS (Enter here and on line 18, frontpage)", should read:"GRANDTOTAL
EXEMPTIONS
and/or
DEDUCTIONS (Enter here and on line 20, frontpage)" 3Upcoming EventsT

he Department will be holding its firstworkshop for 1999 sometime in May. The
topics which will be covered at the workshop
have not been finalized, but probably will include a
discussion on the newly adopted intermediary services
rules and the taxation of pensions. CPE credit for CPAs
attending the workshop will be available.
The first Practitioners’ Forum for 1999 is beingscheduled for June. The Practitioners’ Forum is an
informal meeting with Director Ray Kamikawa andrepresentatives from tax firms to discuss various matters,
brainstorm ideas, raise questions, and resolve problems
and tax issues. Audience participation and discussions
are the key to a successful Forum. The Practitioners’
Forum should not be confused with the workshops
conducted by the Department, where presentations on
various topics are made by Department personnel and forwhich education credits are available.
To have a registration form for the workshop or
Practitioners’ Forum sent to you when they become
available, call your nearest district tax office, or call the
Department’s Forms Request Line on Oahu at 587-7572,
or toll-free from the neighbor islands and mainland U.S.
at 1-800-222-7572, and leave a message on the Forms by
Mail voice mail system. 3

Page 5

Recently Issued Tax
Publications

T

he following is a list of the publications
issued by the Department of Taxation fromMay 1998 through March 1999. Copies ofthese publications may be downloaded from the
Department’s website. With the exception of the Hawaii
Administrative Rules, copies of these publications also
may be obtained from any district tax office or by mailthrough the Department’s Forms Request Line.
Addresses and telephone numbers are provided on thelast page of this newsletter.
Copies of Administrative Rules are available for a fee(50¢ per copied page). To request a copy, mail yourrequest to the Department of Taxation, Attention: Rules
Office, P. O. Box 259, Honolulu, Hawaii, 96809-0259.
Include your name, address, and telephone number;
identify the rule (e.g., "intermediary services"); andprovide a check payable to the "Director of Finance" inthe amount specified below. The rules listed below also
are available at the Department’s website. To access a
specific rule, go to the Announcement regarding the
adoption of those rules and click on the link to theapplicable rule (e.g., to access the intermediary services
rules, go to Announcement No. 99-2 and click on the linkto those rules).
Chapter 18-237 and Sections 18-238-1 and18-238-2, HAR - Relating to the application of thegeneral excise tax and use tax to the sale of tangible
personal property by an out-of-state seller, including
drop shipments. ($10.50)
Section 18-235-38-06, HAR - Relating to themodification of the sales, property, and payroll factors in
the apportionment formula of taxpayers engaged in
multi-state radio or television broadcasting or
publishing. ($9.50)
Section 18-235-1, HAR - Relating to residency
determinations, disabilities, and resident estates andresident trusts. ($15.00)
Section 18-235-38-03, HAR - Relating to theinclusion in the sales factor of the apportionment
formula, the net gain from the short term investment,
reinvestment, or trading of intangible assets. ($3.00)
Section 18-237-16.5-01 to 18-237-16.5-07, HAR Relating to the application of the general excise tax towritten real property leases and the sublease deduction.
($9.00)Section 18-237-13(6)-01 to 18-237-13(6)-09, HAR- Relating to the application of the general excise tax tointermediary services. ($14.00)
Section 18-235-61-04, HAR - Relating to the
exemption from withholding of income taxes on wages(See Recent Publications, Page 6)

Page 6

Hawaii Tax News

Recent Publications(From Page 5)of qualifying nonresident employees. ($2.50)
TIR No. 98-3 - Provides information regarding the1998 Legislation on business development corporations.
TIR No. 98-4 - Provides guidance regarding theapplication of the transient accommodations tax andgeneral excise tax to an operator of transient
accommodations.
TIR No. 98-5 - Provides guidance regarding thegeneral excise tax exemption for tangible personal
property, including souvenirs and gift items, shipped outof the State.
TIR No. 98-6 - Provides guidance regarding theapplication of Hawaii’s income tax and franchise tax
laws to real estate investment trusts and their owners.
TIR No. 98-7 - Provides guidance to public service
companies which change their accounting period from acalendar year to a fiscal year.
TIR No. 98-8 - Provides information on Act 247,
SLH 1998, regarding the general excise tax exemption
for tangible personal property imported into the State forresale at wholesale, and the application of Act 247 to drop
shipments.
TIR No. 98-9 - Provides guidance regarding theapplication of the general excise tax to the gross income
received from the sale of a service and contracting.
TIR No. 99-1 - Provides information on the filing oftax returns required by taxpayers who pay taxes byelectronic funds transfer.
Announcement No. 98-7 - Informs taxpayers of theincrease in the liquor tax rates.
Announcement No. 98-8 - Requesting suggestions
for improving tax forms.
Announcement No. 98-9 - Informs taxpayers of the
Hawaii Income Tax Law conformity to the Internal
Revenue Code.
Announcement No. 98-10 - Announces the adoptionof Hawaii Administrative Rules, relating to theapplication of the general excise tax and use tax to thesale of tangible personal property by an out-of-state
seller, including drop shipments.
Announcement No. 98-11 - Informs taxpayers of theincrease in the cigarette tax from 4 cents per cigarette tofive cents per cigarette beginning July 1, 1998.
Announcement No. 98-12 - Requesting comments
relating to the taxation of the telecommunicationsindustry.
Announcement No. 98-13 - Informs taxpayers thatbeginning September 1, 1998, the cigarette and tobacco
tax will be imposed on the sale, use, or possession ofcigarettes and the sale of tobacco products bywholesalers and dealers to the United States.
Announcement No. 98-14 - Provides information on

Spring 1999

Act 143, SLH 1998, which allows a company engaged
in a network or multi-level marketing arrangement toobtain a single general excise tax license for all of its
direct sellers doing business in the State.
Announcement No. 98-15 - Informs taxpayers thatthe Department of Taxation is postponing the September
1, 1998 effective date for the imposition of the cigaretteand tobacco taxes on sales and gross proceeds of sales ofcigarettes and tobacco products to the United States.
Announcement No. 98-16 - Provides information on
Act 169, SLH 1998, which relieves the generalcontractor of liability for the general excise taxes on thecontract amounts paid by the general contractor to a
subcontractor.
Announcement No. 98-17 - Announces the adoptionof Hawaii Administrative Rules, relating to theapportionment of income for multi-state radio andtelevision broadcasters and publishers.
Announcement No. 98-18 - Provides information on
Act 125, SLH 1998, which amends certain public service
company tax provisions.
Announcement No. 98-19 - Announces the adoptionof Hawaii Administrative Rules, relating to definitions
involving residency determinations and persons withdisabilities.
Announcement No. 98-20 - Announces the adoptionof Hawaii Administrative Rules relating to the sales
factor of the apportionment formula.
Announcement No. 98-21 - Provides information on
Act 156, SLH 1998, which increases the transient
accommodations tax (TAT) from 6 percent to 7.25
percent, creates a Hawaii Tourism Authority, andsubjects timesharing to the TAT, effective January 1,
1999.
Announcement No. 98-22 - Requesting comments
relating to the application of the general excise tax tosales to eating or drinking retailers.
Announcement No. 98-23 - Announces the adoptionof Hawaii Administrative Rules, relating to theapplication of the general excise tax to written real
property leases and the sublease deduction.
Announcement No. 98-24 - Informs taxpayers thatForm G-37, General Excise Tax Exemption for Certified
or Approved Housing Projects, was revised.
Announcement No. 99-1 - Provides a list of
candidates for political office who have registered withthe campaign spending commission.
Announcement No. 99-2 - Announces the adoptionof Hawaii Administrative Rules, relating to theintermediary services rate.
Announcement No. 99-3 - A Listing of New and
Obsolete/Retired Tax Forms, Instructions, andSchedules; Errors Found on Hawaii Tax Forms As of
February 19, 1999.
Announcement No. 99-4 - Announces the adoption(See Recent Publications, Page 7)

Spring 1999

Hawaii Tax News

Recent Publications(From Page 6)of Hawaii Administrative Rules, relating to the
exemption from withholding of income taxes on wagesof qualifying nonresident employees.
Tax Facts No. 98-2 - Provides general information
about the public service company tax as it applies tomotor carriers providing contract services for thetransportation of freight or passengers on the public
highways of the State.
Tax Facts No. 98-3 - Provides information relating
to tax issues for Hawaii nonprofit organizations.
Tax Facts No. 98-4 - Provides information regarding
the transient accommodations tax on time shareoccupancy from the time share interval owner’s
perspective. 3

Pending Tax
Publications

T

he following is a list of the Department’s tax
projects in progress, and the name andtelephone number of the staff member
assigned to the project.
Administration of Taxes• Application of cost recovery fees to selected goods
and services, including installment agreements sections 231-3.4 and 231-25.5, HRS. (Jayna Uyehara,
587-1553)• Application of penalties and interest and the waiver ofpenalties and interest - sections 231-3 and 231-39,
HRS. (Jayna Uyehara, 587-1553)
Income Tax Law• Application of the income tax to amounts from apension plan that are "rolled over" into an Individual
Retirement Account - section 235-7, HRS. (Iris
Kitamura, 587-1570)• Application of the business entity classification rules
under the check the box regulations to the Hawaii
income tax. (Johnson Lau, 587-1562)• Filing of composite returns. (Dana Oshiro-Viola,587-1564)• Withholding exemption for ministers. (Johnson Lau,587-1562)
General Excise Tax Law• Application of the general excise tax to interest
income - section 237-3, HRS.
• Application of the general excise tax to prepaid
telephone calling cards - section 237-13, HRS. (Jayna
Uyehara, 587-1553)

Page 7• Application of the general excise tax to satellite
broadcasters - section 237-13, HRS. (Jayna Uyehara,
587-1553)• Application of the general excise tax to Internet
service providers - section 237-13, HRS. (Jayna
Uyehara, 587-1553)• Use of resale certificates - section 237-13, HRS.
(Dana Oshiro-Viola, 587-1564)• Application of the general excise tax to the sale of gift
certificates - section 237-13, HRS. (Iris Kitamura
587-1570)• Application of the general excise tax to employee
leasing companies - section 237-13, HRS. (Johnson
Lau, 587-1562)• Income-splitting exemption for tour companies andtour packagers - section 237-18, HRS. (Grant
Tanimoto, 587-1569)• Application of the general excise tax toreimbursements - section 237-20, HRS. (Grant
Tanimoto, 587-1569)• Application of the general excise tax to scientificcontracts - section 237-26, HRS. (Johnson Lau,587-1562)• Application of the business entity classification rules
under the check the box regulations to the Hawaii
general excise tax. (Johnson Lau, 587-1562)• Application of the general excise tax to sales ofcomputer software. (Marshall Dimond, 587-1533)• Application of the motion picture credit andexemption. (Marshall Dimond, 587-1533)• General excise tax licensing and tax clearance
requirements of S corporations. (Johnson Lau,587-1562)
Use Tax Law• Temporary use exemption for property - section
238-1, HRS. (Marshall Dimond, 587-1533)• Application of the use tax to sales to the federal
government.
Franchise Tax Law• Application of the franchise tax to mortgage brokers,
including sole proprietors and flow-through entities section 241-3, HRS. (Marshall Dimond, 587-1533)
Conveyance Tax Law• Application of the conveyance tax. (MarshallDimond, 587-1533)
Miscellaneous• State business tax credits and general excise
exemption for business located in enterprise zones chapter 209E, HRS. (Grant Tanimoto, 587-1569,
Dana Oshiro-Viola, 587-1564)• Exemption for certified or approved housing projects- section 237-29, HRS. (Marshall Dimond, 587-1533)

3

DISTRICT TAX OFFICESState Office Building
3060 Eiwa Street, #105
Lihue, HI 96766-1889
FAX: 808-274-3461
TELEPHONE: 808-274-3456

KAUAI DISTRICT OFFICE

State Office Building
75 Aupuni Street, #101
Hilo, HI 96720-4245
FAX: 808-974-6300
TELEPHONE: 808-974-6321

HAWAII DISTRICT OFFICE

State Office Building
54 S. High Street, #208
Wailuku, HI 96793-2198
FAX: 808-984-8522
TELEPHONE: 808-984-8500

MAUI DISTRICT OFFICE

Princess Ruth Keelikolani Building
830 Punchbowl Street
Honolulu, HI 96813-5094
FAX: 808-587-1488
TELEPHONE:For Tax Information:808-587-6515 (January - April 20)
808-587-4242
1-800-222-3229 (Toll-Free)808-587-1418 (TDD - For the hearing impaired)
1-800-887-8974 (TDD Toll-Free - For the hearing impaired)
Tax Forms and CD-ROM (Nominal Cost) by Mail:
808-587-7572
1-800-222-7572 (Toll-Free)
Tax Forms by Fax:
On Oahu: 587-7572
All Others: 808-678-0522 from your fax machine

OAHU DISTRICT OFFICE

http://www.state.hi.us/tax/tax.html

WEB INFORMATION AND FORMS

Forms and Information may be obtained from any district tax office,Mondays through Fridays, except State holidays, from 7:45 A.M. to 4:30
P.M.

Taxpayer Services BranchState of Hawaii
Department of Taxation
P.O. Box 259
Honolulu, HI 96809-0259