§235-25  Rents; royalties.  (a)  Netrents and royalties from real property located in this State are allocable tothis State.

(b)  Net rents and royalties from tangiblepersonal property are allocable to this State:

(1)  If and to the extent that the property isutilized in this State, or

(2)  In their entirety if the taxpayer's commercialdomicile is in this State and the taxpayer is not organized under the laws ofor taxable in the state in which the property is utilized.

(c)  The extent of utilization of tangiblepersonal property in a state is determined by multiplying the rents androyalties by a fraction, the numerator of which is the number of days ofphysical location of the property in the state during the rental or royaltyperiod in the taxable year and the denominator of which is the number of daysof physical location of the property everywhere during all rental or royaltyperiods in the taxable year.  If the physical location of the property duringthe rental or royalty period is unknown or unascertainable by the taxpayer,tangible personal property is utilized in the state in which the property waslocated at the time the rental or royalty payer obtained possession. [L 1967, c33, pt of §1; HRS §235-25]