§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.



  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.



  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.