§237-22  Conformity to Constitution, etc. (a)  In computing the amounts of any tax imposed under this chapter, thereshall be excepted or deducted from the values, gross proceeds of sales, orgross income so much thereof as, under the Constitution and laws of the UnitedStates, the State is prohibited from taxing, but only so long as and only tothe extent that the State is so prohibited.

(b)  To the extent that any deduction,allocation, or other method to determine tax liability is necessary to comply withsubsection (a), each taxpayer liable for the tax imposed by this chapter shallbe entitled to full offset for the amount of legally imposed sales, grossreceipts, or use taxes paid by the taxpayer with respect to the importedproperty, service, or contracting to another state and any subdivision thereof;provided that such offset shall not exceed the amount of general excise taximposed under this chapter upon the gross proceeds of sales or gross incomefrom the sale and subsequent sale of the imported property, service, orcontracting.  The amount of legally imposed sales, gross receipts, or use taxespaid by the taxpayer with respect to the import shall be first applied againstany use tax, as permitted under section 238-3(i), and any remaining amount maybe applied under this section for the same imported property, service, orcontracting.

The director of taxation shall have theauthority to implement this offset by prescribing tax forms and instructionsthat require tax reporting and payment by deduction, allocation, or any othermethod to determine tax liability to the extent necessary to comply with theforegoing.

The director of taxation may require thetaxpayer to produce the necessary receipts or vouchers indicating the paymentof the sales, gross receipts, or use taxes to another state or subdivision as acondition for the allowance of this offset. [L 1935, c 141, §3; RL 1945, §5458;RL 1955, §117-19; am L 1957, c 34, §11(j); HRS §237-22; am L 2002, c 98, §2]

 

Note

 

  The 2002 amendment applies to all open tax years and for taxyears that are pending appeal at the time of approval.  L 2002, c 98, §4.

 

Case Notes

 

  Radio stations.  40 H. 121, aff'd 216 F.2d 700.

  Tax on foreign manufacturer's representative held not inviolation of commerce clause.  46 H. 269, 379 P.2d 336.

  Cited:  48 H. 486, 503, 405 P.2d 382.