§237-14  Segregation of gross income, etc.,on records and in returns.  The imposition of taxes and the application oftax rates do not depend upon the business in which the taxpayer is primarilyengaged.  One business may be subject to two or more tax rates.  If a businessis within the purview of two or more of the paragraphs of section 237-13 orother provisions of this chapter all of them apply, each provision beingapplicable to the appropriate item of gross income, gross proceeds of sales, orvalue of products.  However, any person engaging or continuing in a businesshaving gross income, gross proceeds of sales, and value of products, or any ofthese as the case may be, taxable at different rates, shall be subject totaxation upon the aggregate amount of the gross income, gross proceeds ofsales, and value of products of the business at the highest rate applicable toany part of the aggregate, unless the person shall segregate the parts taxableat different rates upon the person's records and in the person's returns, andshall sustain the burden of proving that the segregation was correctly made. [L1957, c 34, §11(h); Supp, §117-14.1; HRS §237-14; gen ch 1985]

 

Case Notes

 

  Taxpayer may be subject to both the service business andretailing classifications to extent each is applicable to particular items ofgross income.  53 H. 450, 497 P.2d 37.