reglab/statecodes huggingface dataset:
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 231 - ADMINISTRATION OF TAXES › Section 18-231-100-01 - Fine for interference with a tax official

Current through June, 2024
(a) A
			 person who intentionally interferes with, hinders, obstructs, prevents, or
			 impedes any investigator, auditor, collector, or other employee of the
			 department from obtaining license information, books, records, articles, or
			 items of business transacted, or other information or property rightfully
			 entitled to the department shall be subject to a fine of $2,000.
(b) No citation shall issue for any conduct
			 that is constitutionally protected.
(c) In any proceeding under this section, it
			 shall be an absolute defense that the person acted with good cause. For
			 purposes of this section, good cause shall mean a situation where:
(1) The person's intent was to comply with
			 the law;
(2) The person acted in a
			 reasonable manner; and
(3) There
			 was a significant mitigating factor such as, but not limited to, the person not
			 knowing he or she was interfering with, hindering, obstructing, preventing, or
			 impeding the investigator, auditor, collector or other employee of the
			 department.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-02 - Definitions

Current through June, 2024
As used in this chapter, unless the context otherwise
				requires:
"Claimant" means any person making a claim for tax relief
				after suffering losses due to damage or destruction of the person's real or
				personal property resulting from a natural disaster, as defined in section
				234-1, Hawaii Revised Statutes.
"Commission" means the duly appointed and constituted natural
				disaster claims commission of the county of the State of Hawaii in which the
				natural disaster occurred.
"Department" means the department of taxation of the State of
				Hawaii.
"Director" means the director of taxation of the State of
				Hawaii.
"Governor" means the governor of the State of Hawaii.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-03 - Commission members

Current through June, 2024
(a) Members of each
			 commission shall be appointed as provided by law.
(b) No individual shall sit as a member of a
			 commission for a particular disaster if the individual:
(1) Has any direct or indirect interest in a
			 claim;
(2) Is related by blood or
			 affinity to any claimant within the third degree;
(3) Is employed by any claimant;
(4) Is an agent of any claimant; or
(5) Is connected in business with any
			 claimant.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-04 - Powers and duties

Current through June, 2024
(a) The commission
			 shall:
(1) Receive, process, review, and
			 investigate each claim;
(2) Conduct
			 a hearing regarding each claim to ascertain the amount of losses suffered by a
			 claimant, in accordance with chapter
			 91, Hawaii Revised Statutes; provided
			 that, if the commission and claimant agree that there is a no dispute as to the
			 facts or the amount of a claim involved in a particular matter, the claimant
			 may waive in writing the opportunity for a hearing provided by these
			 administrative rules;
(3)
			 Administer oaths or affirmations to persons testifying before the
			 commission;
(4) Determine the
			 amount of losses sustained by a claimant based upon the evidence presented to
			 the commission;
(5) Certify the
			 amount of losses to the director;
(6) Seek advice from the Office of the
			 Attorney General when legal assistance is necessary;
(7) Prescribe and prepare the necessary forms
			 to be used.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-05 - Filing of claims

Current through June, 2024
(a) All claims
			 shall be in writing, verified under oath, and submitted on a form prescribed by
			 the commission and shall contain such information as the commission may
			 require. An original and two copies of each claim shall be filed with the
			 commission in the county in which the disaster occurred at any location
			 designated by the commission. The commission shall publish the location or list
			 of locations not less than once in a newspaper of general circulation which is
			 printed and issued at least twice weekly in the affected county and may take
			 additional measures to publicize the location or locations. A claim shall be
			 deemed to be filed either on the date the claim is received by the commission,
			 if hand-delivered, or the postmarked date of a claim, if mailed to the
			 commission, and each claim shall be date stamped upon receipt by the
			 commission.
(b) Claims shall be
			 filed:
(1) On or before December 31 of the
			 year in which the disaster occurred; or
(2) On or before the date prescribed by the
			 commission.
Notwithstanding the foregoing, the last day for filing a claim
				shall not be more than six months from the date of the occurrence of the
				disaster as determined by the governor.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-06 - Hearings

Current through June, 2024
(a) All hearings shall be governed by the
			 requirements set forth in chapter
			 91, Hawaii Revised Statutes.
(b) All hearings shall be conducted under the
			 following procedures:
(1) A claimant shall be
			 given notice in writing of the hearing by registered or certified mail with
			 return receipt requested not less than fifteen days before the date of the
			 hearing. The notice of hearing shall include the date, time, and place of the
			 hearing. The hearing shall be at the time and place set forth in the notice of
			 hearing; provided that the chairperson or other designated member, by oral
			 announcement at the hearing, may continue the hearing from day to day or
			 adjourn the hearing to the later day or to a different place without further
			 written notice.
(2) A majority of
			 members of each commission shall constitute a quorum for the conduct of any
			 hearing.
(3) The chairperson or
			 other designated member shall conduct the hearing and shall administer an oath
			 or affirmation to all witnesses appearing at the hearing.
(4) The hearing any be conducted informally
			 without adherence to the rules of evidence. The commission may receive any
			 information or testimony that is relevant or material to any claim, including
			 hearsay evidence.
(5) All claimants
			 shall be afforded the opportunity to present information, evidence, and
			 argument on the valuation of their claimed losses.
(6) Any member of the commission may question
			 a witness, including a claimant.
(7) In its sole discretion, the commission
			 may call witnesses other than the claimant's witnesses to provide information,
			 in the opinion of the commission, additional testimony would be helpful in
			 ascertaining the amount of losses sustained by a claimant.
(8) The commission may required the
			 production of documents, records, or other forms of proof of a claim.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-07 - Valuation of losses; certification of losses

Current through June, 2024
(a) The
			 total losses sustained by a claimant shall be the difference between the fair
			 market value of the real or personal property immediately prior to the disaster
			 and the fair market value of the real or personal property immediately after
			 the disaster.
(b) The fair market
			 value of real property losses may be determined by using the market, income, or
			 cost method of valuation. The commission may consider real property tax
			 assessments in ascertaining the fair market value of land or
			 buildings.
(c) The fair market
			 value of personal property losses may be determined by using business records,
			 reference manuals, indexes, and other written materials used for valuation
			 purposes. Factors that may be considered in making the calculation include
			 acquisition cost, date of acquisition, depreciation allowance, method of
			 depreciation, and salvage value.
(d) The fair market value of crop losses
			 shall be determined as follows:
(1) The
			 commission shall seek the assistance of the University of Hawaii in
			 establishing standards or formulas to assist the commission in calculating as
			 equitably as possible the value of crop losses;
(2) All claimants filing for relief subject
			 to this subsection shall disclose and make available to the University of
			 Hawaii or its designated agents any information the University of Hawaii or its
			 designated agents believe is necessary to establish the standards or formulas;
			 and
(3) The commission shall adopt
			 the standards and formulas set by the University of Hawaii or its designated
			 agents and apply the standards and formulas when calculating the value of crop
			 losses.
The commission shall not certify the crop losses of any
				claimant who does not disclose or make available the requested
				information.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-08 - Allowance of tax relief

Current through June, 2024
(a) Upon receipt of
			 the certification of losses, the director shall remit, refund, or forgive real
			 property and general excise taxes in the following amounts:
(1) General excise taxes in an amount not to
			 exceed $25,000; and
(2) Real
			 property taxes in an amount not to exceed $35,000.
In no event shall the maximum allowable tax relief including
				general excise tax and real property taxes exceed $35,000, and the total amount
				of tax relief shall not exceed the amount of losses certified by the
				commission.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-09 - Review of claims; appeal to circuit court

Current through June, 2024
A claimant may appeal the commission's determination on a
				claim or amended claim to the circuit court of the county for which the
				commission is appointed. The appeal shall be filed not later than thirty days
				from the date of receipt of the certification of losses. Upon appeal, the
				claimant is entitled to a trial by jury; provided that a demand for jury trial
				shall be made in writing not more than ten days from the date the notice of
				appeal is filed or the demand for jury trial shall be deemed to be waived.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS › Section 18-234-10 - Administration; expenditures; compensation

Current through June, 2024
(a) Each commission
			 shall be placed within the department for supervisory and administrative
			 purposes.
(b) All expenses
			 necessary for the administration of the commission shall be paid from the
			 governor's contingency fund; provided that, if moneys from the contingency fund
			 are not available or released, the expenses may be paid from moneys allocated
			 to the department.
(c) The
			 commission may engage persons, through contractual or other written agreements,
			 to assist in assessing and determining claimants' losses, and these persons may
			 also serve as witnesses at hearings.
(d) Members shall serve without compensation
			 but shall be reimbursed for any reasonable and necessary expenses incurred in
			 the performance of their duties. Expenses shall include travel costs, mileage
			 expenses, and other expenses reasonably related to the performance of members'
			 duties.
(e) Contractual or other
			 written agreements in subsection (c), requests for payments for services
			 rendered under the agreements, and reimbursements for members' expenses in
			 subsection (d) shall be approved by the director and processed by the
			 department. All contractual or written agreements, requests for payments for
			 services, and requests for reimbursement shall be made in accordance with the
			 procedures and forms prescribed by the comptroller of the department of
			 accounting and general services.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.01 - Resident/Nonresident, defined

Current through June, 2024
"Resident" means:
(1) Every individual domiciled in Hawaii;
				and
(2) Every other individual
				whether domiciled in Hawaii or not, who resides in Hawaii for other than a
				temporary or transitory purpose.
"Nonresident" means every individual other than a
				  resident.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.02 - Residency, generally

Current through June, 2024
(a) A resident is
				subject to the net income tax imposed by chapter
				235, HRS, on income from all sources,
				both in the state and outside the state, as set forth in section 18-235-4-02,
				HAR. A nonresident, however, is subject to the net income tax imposed by
				chapter
				235, HRS, only on income from sources
				within Hawaii, as set forth in section 18-235-4-03, HAR.
(b) The status of an individual as a resident
				or nonresident is determined by all of the factual circumstances.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.03 - Establishing residency by domicile

Current through June, 2024
(a) An individual
				who is domiciled in Hawaii is considered a resident.
(1) Domicile is the place of the individual's
				true, fixed, permanent home.
(2)
				The domicile is the principal establishment to which the individual has the
				intention of returning whenever the individual is absent.
(3) An individual can have several residences
				or dwelling places in which he or she resides, but can have only one domicile,
				or permanent residence to which he or she intends to return.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.04 - Domicile by birth

Current through June, 2024
(a) "Domicile by
				birth" is acquired by every individual at birth and continues until replaced by
				the acquisition of another domicile. A child is given the domicile of the
				child's parents at the time of the child's birth. A domicile by birth, however,
				may not be the same place where the child is born. If the parents' domicile is
				other than where the child is born, the parents' domicile is the domicile of
				the child.
(b) If a child is born
				to parents who have different places of domicile, the child's domicile will
				generally be the same as the domicile of the parent who is able to claim the
				child as a dependent.
Example 1:
A, a domiciliary resident of Hawaii,
				  married a domiciliary resident of Oregon. Their first child was born in Hawaii
				  and their second child was born in Texas. A files a separate Hawaii resident
				  income tax return. A claims both children as dependents.
Conclusion: Both children are deemed to be domiciliary
				  residents of Hawaii because A, a domiciliary resident of Hawaii, claims both
				  children as dependents.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.05 - Domicile by choice

Current through June, 2024
(a) "Domicile by
				choice" is a domicile chosen by an individual to replace the individual's
				former domicile. An individual can acquire a domicile by choice when:
(1) The individual is no longer eligible to
				be claimed as a dependent on another person's federal or Hawaii income tax
				return; and
(2) The individual has
				reached the legal age of majority in Hawaii.
The individual may then voluntarily establish the place of
				  the individual's domicile wherever he or she may be. In doing so, however, the
				  individual must meet all the requirements of law for the purpose of
				  establishing a new domicile.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.06 - Domicile by operation of law

Current through June, 2024
(a) "Domicile by
				operation of law" is assigned or attributed to an individual independently of
				the individual's residence or intention. In the usual case, domicile by
				operation of law is applied to those individuals, who, because of certain
				disabilities, are unable to acquire a domicile by choice. These would include
				such individuals as minor children and incompetents.
(b) If a child becomes a dependent, for tax
				purposes, of someone with a different domicile, the child's domicile will
				generally be the same as the domicile of the individual who is able to claim
				the child as a dependent.
Example 1:
E, a Hawaii domiciliary resident,
				  has one child from an earlier marriage to another Hawaii domiciliary resident.
				  E subsequently marries F, a domiciliary resident of Utah. F provides all of the
				  support for both E and E's child (F's stepchild). F claims the child as a
				  dependent.
Conclusion: The child is deemed to be a nonresident of
				  Hawaii because F, a domiciliary resident of Utah, claims the child as a
				  dependent.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.07 - Establishing residency by residing in the State

Current through June, 2024
(a) An
				individual who is not domiciled in Hawaii may acquire the status of a resident
				by virtue of being physically present in Hawaii for other than a temporary or
				transitory purpose.
(b) Whether or
				not the purpose for which an individual is in Hawaii will be considered
				temporary or transitory in character will depend upon the facts and
				circumstances of each particular case.
(c) An individual will be deemed a
				nonresident of Hawaii if he or she is in Hawaii for a temporary or transitory
				purpose, including the following:
(1) The
				individual is simply passing through Hawaii to another state or
				country;
(2) The individual is in
				Hawaii for a brief rest or vacation;
(3) The individual is in Hawaii for health
				reasons and is receiving medical treatment or recuperating from an illness;
				and
(4) The individual's presence
				in Hawaii is required for a short period to complete a particular transaction
				or perform a particular contract.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.08 - Residence status, factors considered

Current through June, 2024
The question of domicile and residency is one of law and
				  fact. A change of domicile will depend upon the acts and declarations of the
				  individual concerned to ascertain whether or not the individual possessed the
				  required intention which the law requires to effect a change of domicile.
				  Similarly, the status of an individual as a resident or nonresident is
				  determined by all the factual circumstances; no single factor is controlling.
				  Some of the relevant factors for determining domicile and residency are:
(1) The length of time spent in
				Hawaii;
(2) Leasing, buying,
				negotiating for or building a home;
(3) Ownership and location of a motor
				vehicle;
(4) Place of issuance of a
				license to drive a motor vehicle;
(5) Location of auto, boat, and airplane
				registrations;
(6) Place of
				marriage;
(7) Where the residence
				of one spouse is in issue, the place of residence of the other
				spouse;
(8) Residence of the family
				of the individual;
(9) Location of
				schools attended by the individual's children;
(10) Address at which bank statements, bills,
				financial data and corespondence concerning other family business is primarily
				received;
(11) Location of club,
				church, and social memberships;
(12) Place where the taxpayer is registered
				to vote and exercise of said privilege;
(13) Location of business interests,
				profession, or employment;
(14)
				Physical location of safe-deposit boxes used for family records and
				valuables;
(15) Contributions to
				local charities;
(16) Declarations
				regarding residence made to public authorities, friends, relatives or
				employers, or in documents such as deeds, leases, mortgages, contracts, and
				insurance policies;
(17) Proposed
				location of burial or acquisition of burial plot for the individual or members
				of the individual's family; and
(18) Location where the individual's will is
				admitted to probate.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.11 - "Person totally disabled", defined

Current through June, 2024
(a) "Person totally
				disabled" means:
(1) A person who is totally
				and permanently disabled, either physically or mentally; and
(2) Is unable to engage in any substantial
				gainful business or occupation because of that disability.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.12 - "Person totally disabled", certification of

Current through June, 2024
(a) The
				disability of a person claiming to be totally disabled must be certified in a
				three-step process:
(1) There must be a
				medical determination that the person is totally disabled, either physically or
				mentally;
(2) The disability must
				be permanent; and
(3) There must be
				a determination that the permanent and total disability results in the person's
				inability to engage in any substantial gainful business or
				occupation.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.13 - "Permanent disability", defined

Current through June, 2024
"Permanent disability" means a disability that can be
				  expected to result in death or has lasted or can be expected to last for a
				  continuous period of not less than twelve months. The twelve-month requirement
				  is inapplicable when the disability is determined to be a terminal state or
				  where it does actually result in death.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.15 - Permanent total disability; submission of certification

Current through June, 2024
(a) An individual claiming the tax benefits
				under the tax laws shall attach to the individual's income tax return the
				original certification of permanent total disability.
(b) The individual shall retain a copy of the
				certification in the individual's records and may continue to claim the
				exemption by attaching a copy of the original certification to the tax return
				in subsequent years.
(c) Where the
				statutory requirements are not met or in appropriate circumstances, the
				department may request additional information or deny the claim for exemption
				in the first year or subsequent years.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.16 - "Resident estate", defined

Current through June, 2024
"Resident estate" means the same as in section
				  235-1, HRS. The
				  estate of a decedent who was a resident at the time of death is a resident
				  estate if a Hawaii court appoints a personal representative or administrator to
				  carry on and who does carry on the principal or an ancillary administration of
				  the estate.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-1.17 - "Resident trust", defined

Current through June, 2024
"Resident trust" means the same as in section
				  235-1, HRS.
(1) If the administration of the trust is
				carried on wholly in the State the trust shall be deemed a resident trust
				irrespective of the place of residence of the fiduciary or
				fiduciaries.
(2) If the sole
				fiduciary, or all of the fiduciaries if more than one, are residents, domestic
				corporations, or partnerships formed under Hawaii law, the trust shall be
				deemed a resident trust irrespective of the place where the trust is
				administered.
(3) If the
				administration of the trust is partly carried on in the State, the trust shall
				be deemed to be a resident trust if one-half or more of the fiduciaries are
				residents, domestic corporations, or partnerships formed under Hawaii
				law.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-2.3 - Conformance to the federal Internal Revenue Code

Current through June, 2024
(a) In
				general.
(1) In order to permit a proper
				administration of the Hawaii net income tax law which by Act 62, S.L.H. 1979,
				adopted by reference various provisions of the federal Internal Revenue Code,
				as amended as of December 31, 1979, the director of taxation finds it desirable
				to establish and publish income tax rules and regulations, conforming to the
				requirements of chapter
				91, HRS. When promulgated as required
				by law, these rules and regulations have the force and effect of law under
				chapter
				235, HRS, and any other chapters
				which contain provisions relating to chapter
				235. The law and regulations must be
				read together, because the regulations relating to a particular section of the
				law do not necessarily cover every point in the section.
(2) Scope. These rules and regulations are
				promulgated to:
(A) Adopt the Federal Tax
				Regulations relating to subtitle A, Chapters 1 and
				6 of the Internal Revenue Code of 1954
				as amended as of December 31, 1978, set forth in this regulation.
(B) List the inoperative sections of the
				Internal Revenue Code. The related federal regulations to these Internal
				Revenue Code sections shall also be inoperative.
(C) As provided by section
				235-2.3(c)
				to (m), HRS, certain Internal Revenue Code
				sections, subsections, parts of subsections, and federal Public Law that do not
				apply or that are otherwise limited in application also shall apply to the
				related federal regulations as contained in this regulation.
(3) Adoption of federal tax
				regulations. The regulations relating to those sections of subtitle A, Chapters
				1 and 6, Internal Revenue Code of 1954, as amended as of December 31, 1978,
				adopted by section
				235-2.3,
				HRS, which are contained in the Federal Tax Regulations 1979 (Title 26,
				Internal Revenue, 1954 Code of Federal Regulations), with amendments and
				adoptions to January 1, 1979, and which are not in conflict with provisions
				contained in chapters
				235,
				231, or 232, Hawaii Revised Statutes,
				are hereby adopted by reference and made a part of the rules and regulations of
				the department of taxation, as they apply to the determination of gross income,
				adjusted gross income, ordinary income and loss, and taxable income, except
				insofar as the regulations pertain to provisions of the Internal Revenue Code
				and federal Public Law, which pursuant to chapter
				235, HRS, and this regulation, do not
				apply or are otherwise limited in application. Provisions in this regulation in
				conflict with those sections of the Internal Revenue Code, the Federal
				Regulations or the federal Public Law shall be limited as provided under
				section
				235-2.3(n),
				HRS.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-01 - Income taxes by the State; residents, nonresidents, corporations, estates and trusts

Current through June, 2024
As used in sections
				  18-235-4-02 to
				  18-235-4-08, and sections
				  18-235-5-01 to
				  18-235-5-04:
"Adjusted gross income" or "adjusted gross income from all
				  sources" means the same as in section 62 (with respect to adjusted gross income
				  defined), IRC.
"From whatever source derived" means the same as in section
				  61(a) (with respect to gross income defined), IRC.
"Hawaii adjusted gross income" means Hawaii source income
				  minus the deductions that are allowed as adjustments to gross income under
				  chapter
				  235, HRS.
"Hawaii source income" means income received or derived from
				  property owned, services performed, trade or business carried on, and any and
				  every other source in the State.
"IRC" means the Internal Revenue Code of 1986, as operative
				  under chapter
				  235, HRS.
"Jurisdiction" means any state of the United States, the
				  District of Columbia, the Commonwealth of Puerto Rico, any territory or
				  possession of the United States, and any foreign country or political
				  subdivision of a foreign country.
"Out-of-state income" means income from whatever source
				  derived, other than Hawaii source income.
"Part-year resident" means an individual who becomes a
				  resident, or ceases to be a resident, during the taxable year.
"State", when not referring specifically to Hawaii, means
				  any state of the United States, the District of Columbia, the Commonwealth of
				  Puerto Rico, or any territory or possession of the United States.
"Taxable in" another jurisdiction means the same as in
				  section
				  235-23,
				  HRS.
"Territory or possession of the United States" means the
				  same as in section 927(d)(5) (with respect to definition of "possessions"),
				  IRC.
"Without regard to source" means the same as "from whatever
				  source derived".
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-02 - Residents taxable on entire income

Current through June, 2024
(a) A resident, as
				defined in section
				235-1, HRS, is
				taxable on income from whatever source derived. For a resident, it is
				immaterial whether the source of the income is Hawaii or another jurisdiction,
				except that if out-of-state income is taxable in another jurisdiction, a tax
				credit may be allowed under section
				235-55,
				HRS, and section 18-235-55.
(b) A
				resident shall not exclude or deduct any income allocated or apportioned to
				another jurisdiction under the Uniform Division of Income for Tax Purposes Act,
				sections
				235-21 to
				235-39, HRS, or
				section 18-235-5-02.
(c) For rules
				relating to change of residence during the taxable year, see section
				18-235-4-04.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-03 - Nonresidents taxable on Hawaii income

Current through June, 2024
(a) A nonresident,
				as defined in section
				235-1, HRS, is
				taxable on Hawaii source income and is not taxable on out-of-state income. A
				nonresident is not allowed a credit for taxes paid to another state under
				section
				235-55,
				HRS.
(b) A nonresident shall
				determine Hawaii source income by allocation and apportionment under the
				Uniform Division of Income for Tax Purposes Act, sections
				235-21 to
				235-39, HRS, if:
(1) The nonresident derives income from
				business activity both within and without the State,
(2) The nonresident's business activity is
				taxable in both this State and another jurisdiction, and
(3) The income is not derived from the
				rendering of purely personal services.
Otherwise, a nonresident shall determine Hawaii source
				  income by allocation and separate accounting pursuant to section
				  235-5,
				  HRS, and section 18-235-5-02.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-04 - Change of residence during taxable year

Current through June, 2024
(a) The
				following rules are applied if during the taxable year the status of a taxpayer
				changes from resident to nonresident, or from nonresident to resident.
(1) For the period of residence, the tax is
				imposed on income from whatever source derived, as provided in section
				18-235-4-02.
(2) For the period of
				nonresidence, the tax is imposed on Hawaii source income, as provided in
				section 18-235-4-03. Part-year residents shall not be eligible for the election
				in section 18-235-4-03(c).
(3) If
				it cannot be determined whether all or part of a taxpayer's income was
				generated during the period of residence, that amount of income shall be
				multiplied by the ratio that the period of residence bears to the entire
				taxable year. The product shall be the portion attributable to Hawaii, unless
				the taxpayer demonstrates to the satisfaction of the department that the result
				attributes to Hawaii out-of-state income that was received or derived during
				the period of nonresidence.
(4) The
				credit for tax paid to another state under section
				235-55,
				HRS, shall be allowed only for tax paid on out-of-state income allocable to the
				period of residence.
Example:
T, an unmarried cash basis calendar
				  year taxpayer, was a resident of Arizona on January 1, 1993. T moved to Hawaii
				  on April 1, 1993, and continued to work as an insurance agent. T is a Hawaii
				  resident for the remainder of 1993. T received $20,000 as gain from the sale on
				  March 20, 1993, of Arizona real property held for investment. T earned
				  commissions of $25,000 for policies sold after April 1, 1993. T earned initial
				  and renewal commissions of $12,000 for policies sold before that date, $4,000
				  of which T earned before April 1, 1993. In addition, T had signed a business
				  consulting contract with one Arizona client, for which T was paid an additional
				  $1,200 for services rendered throughout the year. T's Hawaii income is computed
				  as follows:
(1) The $20,000 gain is
				out-of-state income earned when T was a nonresident. None of it is attributable
				to Hawaii.
(2) The commissions of
				$25,000 are from a trade or business carried on in Hawaii, and are Hawaii
				source income. The commissions were earned when T was a Hawaii resident. All of
				these commissions are attributable to Hawaii.
(3) The $12,000 in commissions earned before
				April 1993 is from a trade or business carried on in Arizona, and is thus
				out-of-state income. However, only $4,000 was earned when T was a nonresident.
				The remaining $8,000 is attributable to Hawaii.
(4) It cannot be determined whether the
				remaining $1,200 in commission income was generated while T was a Hawaii
				resident. Thus, because T was a resident for nine months in 1993, 9/12 x
				$1,200, or $900, shall be attributable to Hawaii unless T demonstrates
				otherwise to the satisfaction of the department.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-05 - Corporations; domestic and foreign

Current through June, 2024
(a) Domestic
				corporations, including professional and nonprofit corporations, are subject to
				tax on Hawaii source income. Domestic corporations also are subject to tax on
				out-of-state income that is not taxable in another jurisdiction.
(b) Income from business activity within and
				without Hawaii that is taxable in another jurisdiction shall be apportioned
				under the Uniform Division of Income for Tax Purposes Act, sections
				235-21 to
				235-39, HRS. A
				domestic corporation is subject to tax in Hawaii on income that is allocated or
				apportioned to any jurisdiction in which that corporation is not
				taxable.
Example 1:
Corporation X, a Hawaii corporation,
				  is actively engaged in selling farm equipment in Hawaii and State A. Both
				  Hawaii and State A impose a net income tax but State A exempts corporations
				  engaged in selling farm equipment. Corporation X is taxable in both Hawaii and
				  State A. Corporation X is not subject to tax in Hawaii on income that is
				  allocated or apportioned to State A.
Example 2:
The facts are the same as in Example
				  1, except that State A may not impose a net income tax on Corporation X because
				  of Public Law No. 86-272,
				  15 U.S.C. sections
				  381 -
				  384. Corporation X
				  is taxable in Hawaii and is not taxable in State A. Corporation X is subject to
				  tax in Hawaii on income that is allocated or apportioned to State A.
(c) Foreign corporations are subject to tax
				on Hawaii source income and are not subject to tax on out-of-state
				income.
(d) For rules relating to
				corporations for which an election under section 1362 (with respect to S
				corporations), IRC, is in effect, see section 18-235-122.
(e) For the election available under the
				Multistate Tax Compact to a foreign corporation whose only activities within
				the State consist of sales, see section 18-235-4-03(c).
(f) For rules used to determine the source of
				income, see section 18-235-4-08.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-06 - Resident and nonresident estates, trusts, and beneficiaries

Current through June, 2024
(a) As used in this section:
"Beneficiary" includes an heir, legatee, devisee, and any
				  person to whom income of a trust is attributed under section 671 (with respect
				  to trust income, deductions, and credits attributable to grantors and others as
				  substantial owners), IRC.
"Beneficiary's share of income" means that portion of the
				  income of an estate or trust:
(1)
				that the beneficiary is required to include in income under subchapter J (with
				respect to estates, trusts, beneficiaries, and decedents), IRC; or
(2) that is attributed to the beneficiary
				under section 671, IRC.
"Resident beneficiary" means a beneficiary who is a
				  "resident person" within the meaning of section
				  235-68(a),
				  HRS.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-4-07 - Resident and nonresident partners of a partnership

Current through June, 2024
(a) A resident partner is subject to tax on
				the partner's distributive share of the partnership income from whatever source
				derived.
(b) A nonresident partner
				is subject to tax on the partner's distributive share of Hawaii source
				income.
(c) Partners of a
				partnership shall be subject to tax on their distributive shares of partnership
				income whether or not the partnership is required to file a return.
(d) A partnership shall determine Hawaii
				source income by allocation and apportionment under the Uniform Division of
				Income for Tax Purposes Act, sections
				235-21 to
				235-39, HRS, if:
(1) The partnership derives income from
				business activity both within and without the State,
(2) The partnership's business activity is
				taxable in both this State and another jurisdiction, and
(3) The income is not derived from the
				rendering of purely personal services.
Otherwise, a partnership shall determine Hawaii source
				  income by allocation and separate accounting pursuant to section
				  235-5,
				  HRS, and section 18-235-5-02.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-5-01 - Allocation of income of persons not taxable upon their entire income

Current through June, 2024
(a) The definitions contained in section
				18-235-4-01 apply to sections 18-235-5-01 to 18-235-5-04.
(b) The rules contained in sections
				18-235-5-01 to 18-235-5-04 apply to taxpayers having only nonbusiness income,
				individual taxpayers having income from the rendering of purely personal
				services, and public utilities taxable under chapter
				239, HRS, whether determining Hawaii
				source income or out-of-state income.
(c) In computing the unrelated business
				taxable income of a tax exempt organization under sections 512 to 514 (with
				respect to unrelated business taxable income, unrelated trade or business, and
				unrelated debt-financed income), IRC, that is subject to tax in Hawaii,
				sections
				235-21 to
				235-39, HRS,
				shall apply.
(d) Taxpayers
				described in subsection (b) shall use these rules for determining estimated
				tax, determining the amount of credit permitted under section
				235-55,
				HRS, and other purposes that require allocation or apportionment of income
				between jurisdictions. Other taxpayers shall use sections
				235-21 to
				235-39, HRS, for
				those purposes.
(e) Section
				235-5(c),
				HRS, and section 18-235-5-03 apply to all taxpayers.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-5-02 - Allocation and separate accounting

Current through June, 2024
(a) Taxpayers
				described in section
				18-235-5-01(b)
				who are required to determine Hawaii source income shall determine Hawaii
				source income by allocation and separate accounting so far as practicable as
				required by section
				235-5(b),
				HRS.
(1) If the nature of the taxpayer's
				activity renders direct allocation impracticable, or the taxpayer's books of
				account and records do not clearly reflect income properly taxable by Hawaii,
				income shall be allocated or apportioned under sections
				235-21 to
				235-39,
				HRS.
(2) If the taxpayer's activity
				within the State is an integral part of a unitary business carried on within
				and without the State, income shall be allocated or apportioned under sections
				235-21 to
				235-39, HRS. For
				purposes of this paragraph, "integral part of a unitary business" means the
				activity is central to the activity of the taxpayer such that allocation and
				separate accounting is not practicable.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-5-04 - Allocation of income and deductions among taxpayers

Current through June, 2024
(a) If two or more organizations, trades, or
				businesses, whether or not incorporated or organized in Hawaii, are owned or
				controlled directly or indirectly by the same interests, the director may
				distribute, apportion, or allocate gross income, deductions, credits, or
				allowances between or among the organizations, trades, or businesses, if the
				director determines that the distribution, apportionment, or allocation is
				necessary in order to clearly reflect the income attributable to any taxpayer's
				activity in this State.
(b) This
				section shall not be construed to permit the filing of consolidated returns by
				two or more affiliated corporations except as provided by section
				235-92,
				HRS.
(c) The director shall not
				allocate or apportion income to Hawaii in excess of what is considered just and
				reasonable under the circumstances.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-5-05 - Alternative apportionment

Current through June, 2024
(a) As authorized by
				section
				235-5(e),
				HRS, if the director of taxation determines that the method set forth in
				section
				235-5,
				HRS, and administrative rules thereunder does not fairly determine income
				derived from or attributable to Hawaii, or does not clearly and accurately
				reflect the actual amount of income received from all property and sources
				within the State, the director may permit or require:
(1) Separate accounting;
(2) The exclusion of any one or more of the
				factors;
(3) The inclusion of one
				or more additional factors which will fairly represent the taxpayer's business
				activity in this State; or
(4) The
				employment of any other method to effectuate an equitable allocation and
				apportionment of the taxpayer's income.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-5.5 - Individual housing accounts (IHA)

Current through June, 2024
(a) Allowance
				deduction.
(1) An individual taxpayer, also
				referred to as a participant, including a married individual, shall be allowed
				a deduction from gross income the amount paid in cash during the taxable year
				to an individual housing account. Except as otherwise provided, any interest
				paid or accrued on the account shall not be included in gross income.
(2) The deduction shall not exceed $5,000 for
				each taxable year. The aggregate amount allowable shall not exceed $25,000.
				These amounts shall be exclusive of any interest paid or accrued.
Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-7-01 - Exclusion of income nontaxable under the Constitution or laws of the United States

Current through June, 2024
(a) Section
				235-7(a)(1),
				HRS, excludes income that is not subject to taxation by the State under the
				Constitution and laws of the United States, if and to the extent that federal
				law so requires.
(b) Public Law No.
				86-272, codified at
				15 U.S.C.
				§§381 -
				384, causes the
				exclusion under section
				235-7(a)(1),
				HRS, to apply. Section
				235-6,
				HRS, is a separate provision and shall not be construed to expand in any way
				the exclusion provided by Public Law No. 86-272 and section
				235-7(a)(1),
				HRS.