HAWAII ADMINISTRATIVE RULES TITLE 18 …

1 INCOME TAX LAW 235- 1 (Unofficial Compilation) HAWAII ADMINISTRATIVE RULESTITLE 18 department OF TAXATIONCHAPTER 235 INCOME TAX LAWS ubchapter 1 General Provisions 18-235-1 (Amended and Renumbered.) Resident / Nonresident, defined. Residency, generally. Establishing residency by domicile. Domicile by birth. Domicile by choice. Domicile by operation of law. Establishing residency by residing in the State.

2 Residence status, factors considered. Individual s presence or absence in compliance with military or naval orders, while engaged in aviation or navigation, or while a student. Aliens. Person totally disabled , defined. Person totally disabled , certification of. Permanent disability , defined. Substantial gainful business or occupation , defined. Permanent total disability; submission of certification. Resident estate , defined. Resident trust , defined. to (Reserved.) Conformance to the federal Internal Revenue Code. 18-235-3 (Reserved.) 18-235-4 (Amended and Renumbered.) 18-235-4-01 Income taxes by the State; residents, nonresidents, corporations, estates and trusts.

3 18-235-4-02 Residents taxable on entire income. 18-235-4-03 Nonresidents taxable on HAWAII income. 18-235-4-04 Change of residence during taxable year. 18-235-4-05 Corporations; domestic and foreign. 18-235-4-06 Resident and nonresident estates, trusts, and beneficiaries. 18-235-4-07 Resident and nonresident partners of a partnership. 18-235-4-08 Source of income. 18-235-5 (Amended and Renumbered.) 18-235-5-01 Allocation of income of persons not taxable upon their entire income. 18-235-5-02 Allocation and separate accounting. 18-235-5-03 Deductions connected with gross income from HAWAII sources. 18-235-5-04 Allocation of income and deductions among taxpayers. 18-235-5-05 Alternative apportionment. Individual housing accounts (IHA). 18-235-6 (Reserved.)

4 18-235-7 (Amended and Renumbered.) INCOME TAX LAW 235- 2 (Unofficial Compilation) 18-235-7-01 Exclusion of income nontaxable under the Constitution or laws of the United States. 18-235-7-02 Exclusion of benefits under public retirement systems. 18-235-7-03 Exclusion of pension income. 18-235-7-04 to 18-235-7-14 (Reserved.) 18-235-7-15 Net operating loss deduction. 18-235-8 to 18-235-11 (Reserved.) 18-235-12 Solar energy devices; income tax credit. Energy conservation devices for hot water heaters; income tax credit. Definitions (Reserved.) Other Solar Energy Systems (Reserved.) Multiple Properties and Mixed-use Property Application of sections through 18-235-13 (Reserved.)

5 Fees for issuing comfort letters, certificates under section , HRS, and certificates under section , HRSS ubchapter 2 Division of Income for Tax Purposes 18-235-21-01 (Reserved.) 18-235-21-02 Two or more businesses of a single taxpayer. 18-235-21-03 Business and nonbusiness income: application of definitions. 18-235-21-04 Proration of deductions. 18-235-22-01 Definitions. 18-235-22-02 Apportionment. 18-235-22-03 Combined reporting method; combined return. 18-235-22-04 Allocation. 18-235-22-05 Consistency and uniformity in reporting. 18-235-23-01 Taxable in another state; in general. 18-235-23-02 When a taxpayer is subject to a tax under section 235-23(1), HRS.

6 18-235-23-03 When a state has jurisdiction to subject a taxpayer to a net income tax. 18-235-24 to 18-235-28 (Reserved.) 18-235-29-01 Apportionment formula. 18-235-29-02 Apportionment formula; denominator of zero. 18-235-29-03 Apportionment for installment sales. 18-235-29-04 Apportionment formula as applied to partnerships. 18-235-30-01 Property factor; in general. 18-235-30-02 Property factor; property used for the production of business income. 18-235-30-03 Property factor; consistency in reporting. 18-235-30-04 Property factor; numerator. 18-235-30-05 Special RULES ; property factor. 18-235-31-01 Property factor; valuation of owned property. 18-235-31-02 Property factor; valuation of rented property. 18-235-31-03 Property factor; special RULES .

7 18-235-32-01 Property factor; averaging property values. 18-235-33-01 Payroll factor; in general. 18-235-33-02 Payroll factor; denominator. 18-235-33-03 Payroll factor; numerator. 18-235-34-01 Payroll factor; compensation paid in this State. 18-235-35-01 Sales factor; in general. 18-235-35-02 Sales factor; denominator. 18-235-35-03 Sales factor; numerator. 18-235-35-04 Sales factor; special RULES . 18-235-35-05 Sales factor; no effect on warehousing exemption. INCOME TAX LAW 235- 3 (Unofficial Compilation) 18-235-36-01 Sales factor; sales of tangible personal property in this State.

8 18-235-36-02 Sales factor; sales of tangible personal property to United States Government in this State. 18-235-37-01 Sales factor; sales other than sales of tangible personal property in this State. 18-235-38-01 Equitable adjustment of apportionment formula. 18-235-38-02 Special RULES ; property factor. 18-235-38-03 Special RULES ; sales factor. 18-235-38-04 Allocation of income and deductions among taxpayers. 18-235-38-05 Apportionment method considered method of accounting. 18-235-38-06 Apportionment of income for special industries. Apportionment of income for ocean carriers. Apportionment of income for air carriers. Construction contractors. Television and radio broadcasting. Publishing. Construction.

9 Exclusion of income, property, payroll, and sales of foreign 3 Individual Income Tax Law 18-235-51 (Reserved.) 18-235-52 Tax in case of joint return of spouses or the return of a surviving spouse. 18-235-53 Tax tables for individuals. 18-235-54 Exemptions. 18-235-55 Tax credits for resident taxpayers. (Repealed.) (Reserved.) Income tax credit for low-income household renters. Food/excise tax credit. 18-235-61 (Amended and Renumbered.) 18-235-61-01 Deduction and withholding of income tax; in general. 18-235-61-02 Definitions. 18-235-61-03 Wages subject to withholding. 18-235-61-04 Services performed by employees within and without the State.

10 18-235-61-05 Payroll period. 18-235-61-06 Amount of tax to be withheld. 18-235-61-07 Additional withholding by agreement permissible. 18-235-61-08 Returns and statements; Forms HW-14, HW-2, and HW-3. 18-235-61-09 Withholding exemptions. 18-235-61-10 Employer s identification number. 18-235-61-11 taxation district in which to file. 18-235-61-12 Statutory period. 18-235-61-13 Records. 18-235-61-14 Change of ownership; transfer of business; employer going out of business. 18-235-62 to 18-235-65 (Reserved.) 18-235-66 Further withholdings at source; crediting of withheld taxes. 18-235-67 (Reserved.)Subchapter 4 Corporation Income Tax 18-235-71 Tax on corporations; rates; credit of shareholder of regulated investment company.