reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-21 Apportionment.

§237-21 Apportionment.
If any person, other than persons liable to the tax on manufacturers as provided by section 237-13(1), is engaged in business both within and without the State or in selling goods for delivery outside the State, and if under the Constitution or laws of the United States or section 237-29.5 the entire gross income of such person cannot be included in the measure of this tax, there shall be apportioned to the State and included in the measure of the tax that portion of the gross income which is derived from activities within the State, to the extent that the apportionment is required by the Constitution or laws of the United States or section 237-29.5. In the case of a tax upon the production of property in the State the apportionment shall be determined as in the case of the tax on manufacturers. In other cases, if and to the extent that the apportionment cannot be accurately made by separate accounting methods, there shall be apportioned to the State and included in the measure of this tax that proportion of the total gross income, so requiring apportionment, which the cost of doing business within the State, applicable to the gross income, bears to the cost of doing business both within and without the State, applicable to the gross income. [L 1941, c 115, §1; RL 1945, §5457; RL 1955, §117-18; am L 1959, c 277, §2; HRS §237-21; am L 1987, c 239, §5; am L 1999, c 70, §3]
Attorney General Opinions
Branch office of mainland travel agency subject to tax on certain portion of earnings. Att. Gen. Op. 65-6.
Case Notes
Tax on trucking business' gross receipts for services rendered wholly within the State not subject to apportionment. 48 H. 486, 405 P.2d 382 (1965).
Apportionment found unnecessary where taxable income consisted of interest income derived from sale of land located in Hawaii. 57 H. 436, 559 P.2d 264 (1977).
Federal Aviation Act preempts the State's ability to assess general excise taxes on revenues derived from the sale of "air transportation"; however, the State may assess general excise taxes under §237-13(6) and this section on that portion of the gross receipts that a freight forwarder receives for ground transportation and other non-air services it provides. 89 H. 51, 968 P.2d 653 (1998).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-22 Conformity to Constitution, etc.

§237-22 Conformity to Constitution, etc.
(a) In computing the amounts of any tax imposed under this chapter, there shall be excepted or deducted from the values, gross proceeds of sales, or gross income so much thereof as, under the Constitution and laws of the United States, the State is prohibited from taxing, but only so long as and only to the extent that the State is so prohibited.
(b) To the extent that any deduction, allocation, or other method to determine tax liability is necessary to comply with subsection (a), each taxpayer liable for the tax imposed by this chapter shall be entitled to full offset for the amount of legally imposed sales, gross receipts, or use taxes paid by the taxpayer with respect to the imported property, service, or contracting to another state and any subdivision thereof; provided that such offset shall not exceed the amount of general excise tax imposed under this chapter upon the gross proceeds of sales or gross income from the sale and subsequent sale of the imported property, service, or contracting. The amount of legally imposed sales, gross receipts, or use taxes paid by the taxpayer with respect to the import shall be first applied against any use tax, as permitted under section 238-3(i), and any remaining amount may be applied under this section for the same imported property, service, or contracting.
The director of taxation shall have the authority to implement this offset by prescribing tax forms and instructions that require tax reporting and payment by deduction, allocation, or any other method to determine tax liability to the extent necessary to comply with the foregoing.
The director of taxation may require the taxpayer to produce the necessary receipts or vouchers indicating the payment of the sales, gross receipts, or use taxes to another state or subdivision as a condition for the allowance of this offset. [L 1935, c 141, §3; RL 1945, §5458; RL 1955, §117-19; am L 1957, c 34, §11(j); HRS §237-22; am L 2002, c 98, §2]
Case Notes
Radio stations. 40 H. 121 (1953), aff'd 216 F.2d 700 (1954).
Tax on foreign manufacturer's representative held not in violation of commerce clause. 46 H. 269, 379 P.2d 336 (1963).
Cited: 48 H. 486, 503, 405 P.2d 382 (1965).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-24.75 Additional exemptions.

§237-24.75 Additional exemptions.
In addition to the amounts exempt under section 237-24, this chapter shall not apply to:
(1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII;
(2) Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances made pursuant to a contract with the Hawaii tourism authority under section 201B-7; and
(3) Amounts received by a professional employer organization that is registered with the department of labor and industrial relations pursuant to chapter 373L, from a client company equal to amounts that are disbursed by the professional employer organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to covered employees at a client company; provided that this exemption shall not apply to amounts received by a professional employer organization after:
(A) Notification from the department of labor and industrial relations that the professional employer organization has not fulfilled or maintained the registration requirements under this chapter; or
(B) A determination by the department that the professional employer organization has failed to pay any tax withholding for covered employees or any federal or state taxes for which the professional employer organization is responsible.
As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1. [L 2002, c 176, §3; am L 2007, c 173, §2 and c 225, §3; am L 2013, c 174, §3]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-24.9 Aircraft service and maintenance facility.

§237-24.9 Aircraft service and maintenance facility.
(a) This chapter shall not apply to amounts received from the servicing and maintenance of aircraft or from the construction of an aircraft service and maintenance facility in the State.
(b) As used in this section:
"Aircraft" means any craft or artificial contrivance of whatever description engaged in intrastate, interstate, or international scheduled commercial use as defined in chapter 263, that operates with two or more jet engines.
"Aircraft service and maintenance" means all scheduled and unscheduled tasks performed within an aircraft service and maintenance facility for the inspection, modification, maintenance, and repair of aircraft and related components including engines, hydraulic and electrical systems, and all other components which are an integral part of an aircraft.
"Aircraft service and maintenance facility" means a facility for aircraft service and maintenance that is not less than thirty thousand square feet in area, and which may include ancillary space which is integral to the facility, such as parts and inventory warehouse space, tool rooms, and related administrative and employee space.
"Construction of an aircraft service and maintenance facility" means all design, engineering, labor, and material costs associated with the construction of facilities the [principal] purpose of which is the provision of facilities for aircraft service and maintenance.
"Maintenance" means the upkeep of aircraft engines, hydraulic and electrical systems, and all other components which are an integral part of an aircraft, but does not include refueling, janitorial services or cleaning, restocking of aircraft and passenger supplies, or loading or unloading of cargo and passenger baggage. [L 1997, c 107, §3; am L 1998, c 208, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-26 Exemption of certain scientific contracts with the United States.

§237-26 Exemption of certain scientific contracts with the United States.
(a) Any provision of law to the contrary notwithstanding, there shall be exempted from the measure of the taxes imposed by chapter 237, all of the gross proceeds derived by a contractor or subcontractor arising from the performance of any scientific work as defined in subsection (b), under a contract or subcontract entered into with the United States (including any agency or instrumentality thereof but not including national banks), and all of the gross proceeds derived from the sale of tangible personal property by a seller of such tangible personal property to such contractor or subcontractor; provided the exemption herein shall apply only to such tangible personal property which is to be affixed to, or to become a physical, integral part of the scientific facility, or which is to be entirely consumed during the performance of the service required by the contract or subcontract.
(b) For purposes of this section, "scientific work" is work involving primarily the research and development for, or the design, manufacture, instrumentation, installation, maintenance, or operation of aerospace, agricultural, astronomical, biomedical, electronic, geophysical, oceanographic, test range, or other scientific facilities. Maintenance or operation, for purposes of this section, shall include housekeeping functions in providing certain nonscientific logistic and support services. [L 1965, c 201, §27; Supp, §117-21.6; HRS §237-26; am L 1970, c 180, §13; am L 1971, c 4, §5; am L 1988, c 163, §1]
Case Notes
Construed as read before 1970 amendment. 57 H. 253, 554 P.2d 238 (1976).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-27 Exemption of certain petroleum refiners.

§237-27 Exemption of certain petroleum refiners.
(a) As used in this section:
"Petroleum products" means petroleum; any distillate, fraction, or derivative of petroleum; natural gas or its components; gas manufactured from a petroleum product; and any product derived from the gas or from the manufacture thereof, such as benzene, xylene, toluene, acetylene, tars, components of tars, and ammonia.
"Refiner" means any person who, in the State, engages in the business of refining petroleum products and is taxable under this chapter, upon the value or gross proceeds of sales of the petroleum products resultant from the business. A person who is engaged in business as a refiner and also in other business shall be deemed a refiner only in respect of the business that produces the products included in the measure of the tax imposed by this chapter.
"Refining" means:
(1) Any process performed by a refiner that includes a change in the character or properties of a petroleum product through the application of heat; or
(2) The compounding by a refiner of a petroleum product with a product that has been refined by the refiner by the process stated in paragraph (1).
(b) There shall be excluded from the measure of the tax on a refiner such part of the petroleum products resultant from the refiner's business as is to be further refined by another refiner, to the extent that the petroleum products resultant from such further refining will be (or but for this subsection would be) included in the measure of the tax on such other refiner, and where petroleum products are to be used partly for such refining and partly for other purposes, the proportion used for each purpose shall be determined upon the basis of weight or BTU content. [L 1953, c 274, §3; RL 1955, §117-22; HRS §237-27; gen ch 1985; am L 2018, c 18, §11]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-27.5 Air pollution control facility.

§237-27.5 Air pollution control facility.
(a) As used in this section, "air pollution control facility" shall mean a new identifiable treatment facility, equipment, device, or the like, which is used to abate or control atmospheric pollution or contamination by removing, reducing, or rendering less noxious air contaminants emitted into the atmosphere from a point immediately preceding the point of such removal, reduction, or rendering to the point of discharge of air, meeting emission standards as established by the department of health, excluding air conditioner, fan, or other similar facility for the comfort of persons at a place of business.
(b) Any provision of law to the contrary notwithstanding, and upon receipt of the certification required by subsection (c), there shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter, all of the gross proceeds arising from, and all of the amount of tangible personal property furnished in conjunction with, the construction, reconstruction, erection, operation, use, or maintenance of an air pollution control facility.
(c) Application for the exemption provided by this section shall first be made with the director of health who, if satisfied that the facility meets the pollution emission criteria established by the department of health, shall certify to that fact. A new certificate shall be obtained from the director of health and filed with the director of taxation every five years certifying that the pollution control facility complies with the pollutant emission criteria established by the department of health. [L 1970, c 134, §1; am L 1989, c 14, §15]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-28.1 Exemption of certain shipbuilding and ship repair business.

§237-28.1 Exemption of certain shipbuilding and ship repair business.
There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds arising from shipbuilding and ship repairs rendered to surface vessels federally owned or engaged in interstate or international trade. [L 1971, c 204, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-29 Exemptions for certified or approved housing projects.

§237-29 Exemptions for certified or approved housing projects.
(a) All gross income received by any qualified person or firm for the planning, design, financing, construction, sale, or lease in the State of a housing project that has been certified or approved under section 201H-36 shall be exempt from general excise taxes.
(b) All gross income received by a nonprofit or a limited distribution mortgagor for a low- and moderate-income housing project certified or approved under section 201H-36 shall be exempt from general excise taxes.
(c) The director of taxation and the Hawaii housing finance and development corporation shall adopt rules pursuant to chapter 91 for the purpose of this section, including any time limitation for the exemptions. [L 1967, c 140, § §1, 2; HRS §237-29; am L 1969, c 132, §1; am L 1983, c 228, §1; am L 1985, c 77, §1; am L 1987, c 337, §11; am L 1988, c 153, §3; am L 1989, c 237, §2; am L 1990, c 68, §2; am L 1997, c 350, § §14 to 16; am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 249, §18]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-29.5 Exemption for sales of tangible personal property shipped out of the State.

§237-29.5 Exemption for sales of tangible personal property shipped out of the State.
(a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the value or gross proceeds arising from the manufacture, production, or sale of tangible personal property:
(1) Shipped by the manufacturer, producer, or seller to a point outside the State where the property is resold or otherwise consumed or used outside the State; or
(2) The sale of which is exempt under section 237-24.3(2).
(b) For the purposes of this section, the manufacturer, producer, or seller shall take from the purchaser, a certificate, in such form as the department shall prescribe, certifying that the tangible personal property purchased is to be resold or otherwise consumed or used outside the State. Any purchaser who shall furnish such a certificate shall be obligated to pay to the seller, upon demand, if the property purchased is not resold or otherwise consumed or used outside the State, the amount of the additional tax which by reason thereof is imposed upon the seller. [L 1987, c 239, pt of §4; am L 1988, c 173, §1; am L 1993, c 220, §4; am L 1994, c 141, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-29.53 Exemption for contracting or services exported out of State.

§237-29.53 Exemption for contracting or services exported out of State.
(a) There shall be exempted from, and excluded from the measure of, taxes imposed by this chapter, all of the value or gross income derived from contracting (as defined under section 237-6) or services performed by a person engaged in a service business or calling in the State for use outside the State where:
(1) The contracting or services are for resale, consumption, or use outside the State; and
(2) The value or gross income derived from the contracting or services performed would otherwise be subject to the tax imposed under this chapter on contracting or services at the highest rate.
For the purposes of this subsection, the seller or person rendering the contracting or services exported and resold, consumed, or used outside the State shall take from the customer, a certificate or an equivalent, in a form the department prescribes, certifying that the contracting or service purchased is to be otherwise resold, consumed, or used outside the State. Any customer who furnishes this certificate or an equivalent shall be obligated to pay the seller or person rendering the contracting or services, upon demand, if the contracting or service purchased is not resold or otherwise consumed or used outside the State, the amount of the additional tax which by reason thereof is imposed upon the seller or person rendering the contracting or service.
(b) There shall be exempted from, and excluded from the measure of, taxes imposed by this chapter, all of the value or gross income derived from contracting (as defined in section 237-6) or services performed by a person engaged in a service business or calling in the State for a purchaser who resells all of the contracting or services for resale, consumption, or use outside the State pursuant to subsection (a). For the purposes of this subsection, the seller or person rendering the contracting or services for a purchaser who resells the contracting or services for resale, consumption, or use outside the State shall take from the purchaser, a certificate or an equivalent, in a form that the department prescribes, certifying that the contracting or services purchased is to be for resale, consumption, or use outside the State pursuant to subsection (a). Any purchaser who furnishes this certificate or an equivalent shall be obligated to pay the seller or person rendering the contracting or services, upon demand, if the contracting or services purchased is not resold in its entirety to a customer of the purchaser who has complied with subsection (a), the amount of the additional tax which by reason thereof is imposed upon the seller or the person rendering the contracting or service. [L 1999, c 70, §1; am L 2000, c 198, §6]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-29.55 Exemption for sale of tangible personal property for resale at wholesale. (a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or gross income arising from the sale of tangible personal property imported to Hawaii from a foreign or domestic source to a licensed taxpayer for subsequent resale for the purpose of wholesale as defined under section 237-4. (b) The department, by rule, may provide that a seller may take from the purchaser of imported tangible personal property, a certificate, in a form that the department shall prescribe, certifying that the purchaser of the imported tangible personal property shall resell the imported tangible personal property at wholesale as defined under section 237-4. Any purchaser who furnishes a certificate shall be obligated to pay to the seller, upon demand, if the sale in fact is not a sale for the purpose of resale at wholesale, the amount of the additional tax which by reason thereof is imposed upon the seller. The absence of a certificate, unless the sales of the business are exclusively a sale for the purpose of resale at wholesale, in itself, shall give rise to the presumption that the sale is not a sale for the purpose of resale at wholesale. [L 1998, c 247, §1]

§237-29.55
Exemption for sale of tangible personal property for resale at wholesale.
(a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or gross income arising from the sale of tangible personal property imported to Hawaii from a foreign or domestic source to a licensed taxpayer for subsequent resale for the purpose of wholesale as defined under section 237-4.
(b) The department, by rule, may provide that a seller may take from the purchaser of imported tangible personal property, a certificate, in a form that the department shall prescribe, certifying that the purchaser of the imported tangible personal property shall resell the imported tangible personal property at wholesale as defined under section 237-4. Any purchaser who furnishes a certificate shall be obligated to pay to the seller, upon demand, if the sale in fact is not a sale for the purpose of resale at wholesale, the amount of the additional tax which by reason thereof is imposed upon the seller. The absence of a certificate, unless the sales of the business are exclusively a sale for the purpose of resale at wholesale, in itself, shall give rise to the presumption that the sale is not a sale for the purpose of resale at wholesale. [L 1998, c 247, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-29.57 Exemption for intangible property used outside the State.

§237-29.57 Exemption for intangible property used outside the State.
(a) All of the value or gross proceeds arising from the use of intangible property outside the State shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter.
(b) For the purposes of this section, the seller or licensor shall take from the purchaser a certificate, in a form prescribed by the department, certifying that the intangible property is to be used outside the State. Any purchaser who furnishes the certificate shall be obligated to pay to the seller or licensor, upon demand, the amount of the additional tax that is imposed upon the seller or licensor, if the intangible property is used in this State. [L 2018, c 183, §1]
Note
Section applies to taxable years beginning after December 31, 2018. L 2018, c 183, §7.
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-29.7 Exemption of insurance companies.

§237-29.7 Exemption of insurance companies.
This chapter shall not apply to the gross income or gross proceeds of insurance companies authorized to do business under chapter 431; except this exemption shall not apply to any gross income or gross proceeds received after December 31, 1991, as rents from investments in real property in this State; provided that gross income or gross proceeds from investments in real property received by insurance companies after December 31, 1991, under written contracts entered into before January 1, 1992, that do not provide for the passing on of taxes or tax increases shall not be taxed until the contracts are renegotiated, renewed, or extended. [L 1991, c 286, §1]
Revision Note
"January 1, 1992" substituted for "the effective date of this Act" pursuant to §23G-15.
Case Notes
Management company for foreign insurers authorized to do business in Hawaii was not an "insurance company" exempt from general excise taxes under this section, where, inter alia, company's arrangements with insurers indicated that it was a separate taxable legal entity. 115 H. 180, 166 P.3d 353 (2007).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-30.5 Collection of rental by third party; filing with department; statement required. "HAWAII GENERAL EXCISE TAXES MUST BE PAID ON THE GROSS RENTS COLLECTED BY ANY PERSON RENTING REAL PROPERTY IN THE STATE OF HAWAII. A COPY OF THE FIRST PAGE OF THIS AGREEMENT, OR OF FEDERAL INTERNAL REVENUE FORM 1099 STATING THE AMOUNT OF RENTS COLLECTED, SHALL BE FILED WITH THE HAWAII DEPARTMENT OF TAXATION."

§237-30.5 Collection of rental by third party; filing with department; statement required.
(a) Every person authorized under an agreement by the owner of real property located within this State to collect rent on behalf of such owner shall be subject to this section.
(b) Every written rental collection agreement shall have on the first page of the agreement the name, address, social security number, and, if available, the general excise tax number of the owner of the real property being rented, the address of the property being rented, and the following statement which shall be set forth in bold print and in ten-point type size:
"HAWAII GENERAL EXCISE TAXES MUST BE PAID ON THE GROSS RENTS COLLECTED BY ANY PERSON RENTING REAL PROPERTY IN THE STATE OF HAWAII. A COPY OF THE FIRST PAGE OF THIS AGREEMENT, OR OF FEDERAL INTERNAL REVENUE FORM 1099 STATING THE AMOUNT OF RENTS COLLECTED, SHALL BE FILED WITH THE HAWAII DEPARTMENT OF TAXATION."
Every person entering an oral rental collection agreement shall furnish the department of taxation the information required under this subsection and shall give the owner of the property a copy of the notice required by this subsection.
(c) Every person authorized to collect rent for another person shall file a copy of the first page of the rental collection agreement with the department of taxation within thirty days after entering into the agreement, or shall file a copy of federal Internal Revenue form 1099, the property owner's social security number, and, if available, the general excise tax license number of the owner of the property being rented with the department of taxation at the same time as such forms must be filed with the Internal Revenue Service.
(d) Every person authorized under an agreement by the owner of real property located within this State to collect rent on behalf of such owner within ninety days after the effective date of this section shall furnish the department of taxation with the information required in subsection (b) and in the case of federal form 1099 such form for the taxable year 1983. The person also shall notify the owner that such information is being furnished and give the owner a copy of the notice required by subsection (b). [L 1983, c 234, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-30.7 Withholding of tax by persons claiming the motion picture, digital media, and film production income tax credit.

§237-30.7 Withholding of tax by persons claiming the motion picture, digital media, and film production income tax credit.
(a) Every person making payment to a loan-out company and claiming a tax credit pursuant to section 235-17 shall deduct and withhold an amount equal to the highest rate of tax under this chapter plus any applicable county surcharge for all payments made to the loan-out company for services performed in the State. The amounts withheld shall be remitted pursuant to subsection (b). The amounts withheld under this section shall be deemed to be a general excise tax withholding for the benefit of the loan-out company performing the service.
(b) Every person subject to subsection (a) shall make a return of the amount withheld and file the return with the department of taxation no later than the twentieth day of the calendar month immediately following the month in which the payment was made to the loan-out company. The taxes withheld shall be remitted with the return. The department of taxation shall prescribe the forms and procedures to administer this section.
(c) All taxes withheld pursuant to this section shall be held in trust by the person withholding for the State. If any person required to withhold and remit taxes under this section fails to withhold or remit the taxes, the person shall be liable for the failure as provided in section 235-64. [L 2022, c 217, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-31 Remittances.

§237-31 Remittances.
All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:
(1) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund;
(2) A sum from all general excise tax revenues realized by the State that is equal to one-half of the total amount of funds appropriated or transferred out of the hurricane reserve trust fund under sections 4 and 5 of Act 62, Session Laws of Hawaii 2011, shall be deposited into the hurricane reserve trust fund in fiscal year 2013-2014 and in fiscal year 2014-2015; provided that the deposit required in each fiscal year shall be made by October 1 of that fiscal year; and
(3) Commencing with fiscal year 2018-2019, a sum from all general excise tax revenues realized by the State that represents the difference between the state public employer's annual required contribution for the separate trust fund established under section 87A-42 and the amount of the state public employer's contributions into that trust fund shall be deposited to the credit of the State's annual required contribution into that trust fund in each fiscal year, as provided in section 87A-42. [L 1935, c 141, §12; RL 1945, §5462; RL 1955, §117-26; am L Sp 1959 2d, c 1, §16; HRS §237-31; am L 1981, c 159, §1; am L 1984, c 163, §1; am L 1985, c 239, §1; am L 1989, c 368, §3; am L 1990, c 163, §3; am L 1992, c 209, § §1, 6 as superseded by am L 1993, c 364, §25; am L 1999, c 110, §1 and c 155, §4; am L 2004, c 115, §2; am L 2006, c 304, § §2, 4; am L 2009, c 11, §3; am L 2011, c 62, §8; am L 2013, c 157, §2 and c 268, §9; am L 2021, c 229, § §4, 9]
Cross References
Deposits to highway fund, see §248-8.
State educational facilities improvement special fund, see §36-32.
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-32 Penalties.

§237-32 Penalties.
Penalties and interest shall be added to and become a part of the tax, when and as provided by section 231-39. [L 1935, c 141, pt of §13; am L 1941, c 265, §8; RL 1945, §5463; am L 1945, c 253, §5; am L 1953, c 125, §10; RL 1955, §117-27; HRS §237-32]
Case Notes
Penalties and interest automatically follow nonpayment of taxes. 40 H. 121 (1953), aff'd 216 F.2d 700 (1954).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-33 Annual return, payment of tax.

§237-33 Annual return, payment of tax.
On or before the twentieth day of the fourth month following the close of the taxable year, each taxpayer shall make a return showing the value of products, gross proceeds of sales or gross income, and compute the amount of tax chargeable against the taxpayer in accordance with this chapter and deduct the amount of monthly payments (as hereinbefore provided), and transmit with the taxpayer's report a remittance in the form required by section 237-31 covering the residue of the tax chargeable against the taxpayer. The return shall be signed by the taxpayer, if made by an individual, or by the president, vice-president, secretary, or treasurer of a corporation, if made on behalf of a corporation. If made on behalf of a partnership, firm, society, unincorporated association, group, hui, joint adventure, joint stock company, corporation, trust estate, decedent's estate, trust, or other entity, any individual delegated by the entity shall sign the same on behalf of the taxpayer. If for any reason it is not practicable for the individual taxpayer to sign the return, it may be done by any duly authorized agent. The department, for good cause shown, may extend the time for making the return on the application of any taxpayer and grant such reasonable additional time within which to make the same as may, by it, be deemed advisable.
Section 232-2 applies to the annual return, but not to a monthly return. [L 1935, c 141, pt of §6; am L 1941, c 265, §4; am L 1943, c 4; RL 1945, §5464; am L 1945, c 253, §7; RL 1955, §117-28; am L 1957, c 34, §10; am L Sp 1959 2d, c 1, §16; am L 1965, c 75, §1; am L 1967, c 37, §1; HRS §237-33; am L 1980, c 237, §1; gen ch 1985; am L 2021, c 117, §11]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-34 Filing of returns; disclosure of returns unlawful, penalty; destruction of returns.

§237-34 Filing of returns; disclosure of returns unlawful, penalty; destruction of returns.
(a) All monthly and annual returns shall be transmitted in the form and manner prescribed by the department.
(b) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the auditor or the auditor's agent with regard to tax return information obtained pursuant to section 23-5(a), to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for tax purposes only, the taxpayer, the taxpayer's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in the case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in the case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person in paragraphs (1) through (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) through (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory;
(11) The Multistate Tax Commission or its authorized representative;
(12) Members of a limited liability company; and
(13) A person contractually obligated to pay the taxes assessed against another when the latter person is under audit by the department.
Any violation of this subsection shall be a class C felony.
(c) The department may destroy the monthly returns filed pursuant to section 237-30, or any of them, upon the expiration of three years after the end of the calendar year in which the taxes so returned accrued. [L 1935, c 141, §6(2); RL 1945, §5465; am L 1945, c 253, §8; RL 1955, §117-29; am L Sp 1959 2d, c 1, §16; am L 1967, c 37, §1; HRS §237-34; am L 1974, c 139, §5; am L 1981, c 170, §1; am L 1984, c 95, §3; am L 1990, c 184, §9; am L 1993, c 5, §2; am L 1997, c 178, §5; am L 2000, c 34, §1; am L 2014, c 136, §5; am L 2021, c 117, §12]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-35 Consolidated reports; interrelated business.

§237-35 Consolidated reports; interrelated business.
When any taxpayer is engaged in two or more forms of business activity taxable under this chapter which are interrelated, or which are of like character, the taxpayer shall file a consolidated return covering all business activities, which are thus interrelated or of like character. [L 1935, c 141, §6(3); RL 1945, §5466; RL 1955, §117-30; HRS §237-35]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-36 Erroneous returns, disallowance of exemption, payment.

§237-36 Erroneous returns, disallowance of exemption, payment.
If any return made is erroneous, or is so deficient as not to disclose the full tax liability, or if the taxpayer, in the taxpayer's return, shall disclaim liability for the tax on any gross income or gross proceeds of sales liable to the tax, or if the taxpayer shall make application under section 237-23 for an exemption to which the taxpayer is not entitled, the department of taxation shall correct the error or assess the proper amount of taxes. If such recomputation results in an additional tax liability, or if the department proposes to assess any gross income or gross proceeds of sales by reason of the disallowance of an exemption claimed in the return or for which application has been filed, the department shall first give notice to the taxpayer of the proposed assessment, and the taxpayer shall thereupon have an opportunity within thirty days to confer with the department. After the expiration of thirty days from the notification the department shall assess the gross income or gross proceeds of sales of the taxpayer or any portion thereof which the department believes has not theretofore been assessed, and shall give notice to the taxpayer of the amount of the tax, and the amount thereof shall be paid within twenty days after the date the notice was mailed, properly addressed to the taxpayer at the taxpayer's last known address or place of business.
No preliminary notice shall be necessary where the amount of the tax is calculated by the department from gross income returned by the taxpayer as subject to the tax (unless the taxpayer shall have claimed that the applicable rate of tax is lower than the rate of tax applied by the department); in such case the tax shall be due and payable on the tenth day after the date the statement was mailed. In a case of disallowance of an exemption for which application was made under section 237-23 the department, before making an assessment, may require the applicant, by demand made upon the applicant by mail or delivery thereof to the address shown in the application, to file information returns as to the applicant's gross income or gross proceeds of sales within such reasonable time as the department may allow, and in the event of failure, neglect, or refusal to comply with the demand, the department shall make an assessment under section 237-38, in lieu of this section. [L 1935, c 141, §7(1); am L 1941, c 265, §5; RL 1945, §5467; am L 1945, c 253, §9; am L 1947, c 111, §10; am L 1953, c 125, pt of §10; RL 1955, §117-31; am L Sp 1959 2d, c 1, §16; HRS §237-36; gen ch 1985]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-37 Refunds and credits.

§237-37 Refunds and credits.
If the amount already paid exceeds that which should have been paid on the basis of the tax recomputed as provided in section 237-36, the excess so paid shall be immediately refunded to the taxpayer in the manner provided in section 231-23(c). The taxpayer may, at the taxpayer's election, apply an overpayment credit to taxes subsequently accruing hereunder.
No recourse may be had except under section 40-35 or by appeal for refunds of taxes paid pursuant to an assessment by the director of taxation; provided that if the assessment by the director shall contain clerical errors, transposition of figures, typographical errors, and errors in calculation or if there shall be an illegal or erroneous assessment, the usual refunds procedures shall apply. No refund or overpayment credit may be had under this section in any event unless the original payment of the tax was due to the law having been interpreted or applied in respect of the taxpayer concerned differently than in respect of taxpayers generally. As to all tax payment for which a refund or credit is not authorized by this section (including without prejudice to the generality of the foregoing cases of unconstitutionality) the remedies provided by appeal or under section 40-35 are exclusive. [L 1935, c 141, pt of §7; RL 1945, §5468; am L 1953, c 125, pt of §10; RL 1955, §117-32; am L 1957, c 34, §11(1) and c 152, §1; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §2; am L 1967, c 37, §1; HRS §237-37; gen ch 1985; am L 2021, c 117, §13]
Revision Note
Section "231-23(c)" substituted for "231-23(d)" pursuant to §23G-15.
Case Notes
Exclusive remedy provision construed as applying only where disputed tax has been paid and a refund is being sought. 57 H. 1, 548 P.2d 246 (1976).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-38 Failure to make return.

§237-38 Failure to make return.
If any person fails, neglects, or refuses to make a return, the department of taxation may proceed as it deems best to obtain information on which to base the assessment of the tax. After procuring the information the department shall proceed to assess the tax as provided in section 237-36. The assessment shall be presumed to be correct until and unless, upon an appeal duly taken as provided in this chapter, the contrary shall be clearly proved by the person assessed, and the burden of proof upon such appeal shall be upon the person assessed to disprove the correctness of the assessment. [L 1935, c 141, §8; am L 1941, c 265, §6; RL 1945, §5469; am L 1953, c 125, pt of §10; RL 1955, §117-33; am L Sp 1959 2d, c 1, §16; HRS §237-38]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-39 Audits; procedure, penalties.

§237-39 Audits; procedure, penalties.
(a) For the purpose of verification or audit of a return made by the taxpayer, or where there is reasonable ground to believe that any return made is so deficient as not to form the basis of a satisfactory assessment of the tax, or for the purpose of making an assessment where no return has been made, the department of taxation or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof, may examine all account books, bank books, bank statements, records, vouchers, taxpayer's copies of federal tax returns, and any and all other documents and evidence having any relevancy to the determination of the gross income or gross proceeds of sales of any taxpayer as required to be returned under this chapter and may summon or require the attendance of the person by or for whom the return, if any, has been made or whose tax is being assessed, and any employee of the person, and may summon or require the attendance of any person having knowledge in the premises, naming the time and place in the summons, and may require the production of any books, statements, or other evidence open to examination, and may take testimony in reference to any matter relevant to the gross income or gross proceeds of sales of the taxpayer for the period under consideration, with power to require that the person so called and appearing shall be interrogated under oath and to administer the oath.
(b) If the department determines that any gross income or gross proceeds of sales liable to the tax have not been assessed, the department may assess the same as provided in sections 237-36 and 237-38.
(c) Any individual knowingly giving false testimony under oath at any hearing before the department shall be guilty of perjury and shall be punished as provided by law.
(d) Any person refusing or neglecting to obey any summons issued by the department, and any individual appearing and refusing to testify under oath, shall be fined $50 for the first offense and $100 for each succeeding offense. [L 1941, c 265, §7; RL 1945, §5470; RL 1955, §117-34; am L Sp 1959 2d, c 1, §16; HRS §237-39; am L 1974, c 139, §6; am L 2017, c 12, §50]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-41 Records to be kept; examination.

§237-41 Records to be kept; examination.
Every taxpayer shall keep in the English language within the State, and preserve for a period of three years, suitable records of gross proceeds of sales and gross income, and such other books, records of account, and invoices as may be required by the department of taxation, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof. [L 1935, c 141, §22; am L 1937, c 202, §2; am L 1943, c 140, §1; RL 1945, §5472; am L 1945, c 253, §10; RL 1955, §117-36; am L Sp 1959 2d, c 1, §16; HRS §237-41; am L 1969, c 274, §4; am L 1974, c 139, §7; am L 1995, c 92, §13]
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-42 Appeals.

§237-42 Appeals.
Any person aggrieved by any assessment of the tax for any month or any year may appeal from the assessment in the manner and within the time and in all other respects as provided in the case of income tax appeals by section 235-114. [L 1935, c 141, §1; am L 1937, c 202, §1; RL 1945, §5473; am L 1953, c 125, pt of §10; RL 1955, §117-37; am L Sp 1957, c 1, §29; HRS §237-42; am L 2000, c 199, §3; am L 2004, c 123, §3]
Case Notes
Taxpayer's 42 U.S.C. §1983 claim against validity of Hawaii's general excise tax barred, where state remedies available to taxpayer were "plain, adequate, and complete". 940 F. Supp. 260 (1995).
Prepayment requirement is constitutional. 57 H. 1, 548 P.2d 246 (1976).
2023 Hawaii Revised Statutes › Title 14. Taxation › 237. General Excise Tax Law › 237-46 Collection by suit; injunction.

§237-46 Collection by suit; injunction.
The department of taxation may collect taxes due and unpaid under this chapter, together with all accrued penalties, by action in assumpsit or other appropriate proceedings in the circuit court of the judicial circuit in which the privilege taxed has been exercised. After delinquency shall have continued for sixty days, or if any person lawfully required so to do under this chapter shall fail to apply for and secure a license as provided by this chapter for a period of sixty days after the first date when the person was required under this chapter to secure the same, the department may proceed in the circuit court of the judicial circuit in which the privilege taxed or taxable has been exercised, to obtain an injunction restraining the further exercise of the privilege until full payment shall have been made of all taxes and penalties and interest due under this chapter, or until such license is secured, or both, as the circumstances of the case may require. [L 1935, c 141, §14; RL 1945, §5478; am L 1951, c 165, §7; RL 1955, §117-43; am L Sp 1959 2d, c 1, §16; HRS §237-46; gen ch 1985; am L 1989, c 6, §5]
Rules of Court
Injunctions, see HRCP rule 65.