§237-21  Apportionment.  If any person,other than persons liable to the tax on manufacturers as provided by section237-13(1), is engaged in business both within and without the State or inselling goods for delivery outside the State, and if under the Constitution orlaws of the United States or section 237-29.5 the entire gross income of suchperson cannot be included in the measure of this tax, there shall beapportioned to the State and included in the measure of the tax that portion ofthe gross income which is derived from activities within the State, to theextent that the apportionment is required by the Constitution or laws of theUnited States or section 237-29.5.  In the case of a tax upon the production ofproperty in the State the apportionment shall be determined as in the case ofthe tax on manufacturers.  In other cases, if and to the extent that theapportionment cannot be accurately made by separate accounting methods, thereshall be apportioned to the State and included in the measure of this tax thatproportion of the total gross income, so requiring apportionment, which thecost of doing business within the State, applicable to the gross income, bearsto the cost of doing business both within and without the State, applicable tothe gross income. [L 1941, c 115, §1; RL 1945, §5457; RL 1955, §117-18; am L1959, 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 oncertain portion of earnings.  Att. Gen. Op. 65-6.

 

Case Notes

 

  Tax on trucking business' gross receipts for servicesrendered wholly within the State not subject to apportionment.  48 H. 486, 405P.2d 382.

  Apportionment found unnecessary where taxable incomeconsisted 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 assessgeneral excise taxes on revenues derived from the sale of "airtransportation"; however, the State may assess general excise taxes under§237-13(6) and this section on that portion of the gross receipts that afreight forwarder receives for ground transportation and other non-air servicesit provides.  89 H. 51, 968 P.2d 653.