§237-24.3  Additional amounts not taxable. [Repeal and reenactment on December 31, 2010.  L 2009, c 196, §5.]  Inaddition to the amounts not taxable under section 237-24, this chapter shallnot apply to:

(1)  Amounts received from the loading, transportation,and unloading of agricultural commodities shipped for a producer or producedealer on one island of this State to a person, firm, or organization onanother island of this State.  The terms "agricultural commodity","producer", and "produce dealer" shall be defined in thesame manner as they are defined in section 147-1; provided that agriculturalcommodities need not have been produced in the State;

(2)  Amounts received from sales of:

(A)  Intoxicating liquor as the term"liquor" is defined in chapter 244D;

(B)  Cigarettes and tobacco products as definedin chapter 245; and

(C)  Agricultural, meat, or fish products;

to any person or common carrier in interstate orforeign commerce, or both, whether ocean-going or air, for consumptionout-of-state on the shipper's vessels or airplanes;

(3)  Amounts received by the manager, submanager, orboard of directors of:

(A)  An association of owners of a condominiumproperty regime established in accordance with chapter 514A or 514B; or

(B)  A nonprofit homeowners or communityassociation incorporated in accordance with chapter 414D or any predecessorthereto and existing pursuant to covenants running with the land,

in reimbursement of sums paid for commonexpenses;

(4)  Amounts received or accrued from:

(A)  The loading or unloading of cargo fromships, barges, vessels, or aircraft, whether or not the ships, barges, vessels,or aircraft travel between the State and other states or countries or betweenthe islands of the State;

(B)  Tugboat services including pilotage feesperformed within the State, and the towage of ships, barges, or vessels in andout of state harbors, or from one pier to another; and

(C)  The transportation of pilots orgovernmental officials to ships, barges, or vessels offshore; rigging gear;checking freight and similar services; standby charges; and use of moorings andrunning mooring lines;

(5)  Amounts received by an employee benefit plan byway of contributions, dividends, interest, and other income; and amountsreceived by a nonprofit organization or office, as payments for costs andexpenses incurred for the administration of an employee benefit plan; providedthat this exemption shall not apply to any gross rental income or gross rentalproceeds received after June 30, 1994, as income from investments in realproperty in this State; and provided further that gross rental income or grossrental proceeds from investments in real property received by an employeebenefit plan after June 30, 1994, under written contracts executed prior toJuly 1, 1994, shall not be taxed until the contracts are renegotiated, renewed,or extended, or until after December 31, 1998, whichever is earlier.  For thepurposes of this paragraph, "employee benefit plan" means any plan asdefined in section 1002(3) of title 29 of the United States Code, as amended;

(6)  Amounts received for purchases made with UnitedStates Department of Agriculture food coupons under the federal food stampprogram, and amounts received for purchases made with United States Departmentof Agriculture food vouchers under the Special Supplemental Foods Program forWomen, Infants and Children;

(7)  Amounts received by a hospital, infirmary,medical clinic, health care facility, pharmacy, or a practitioner licensed toadminister the drug to an individual for selling prescription drugs orprosthetic devices to an individual; provided that this paragraph shall notapply to any amounts received for services provided in selling prescriptiondrugs or prosthetic devices.  As used in this paragraph:

"Prescription drugs" are thosedrugs defined under section 328-1 and dispensed by filling or refilling awritten or oral prescription by a practitioner licensed under law to administerthe drug and sold by a licensed pharmacist under section 328-16 orpractitioners licensed to administer drugs; and

"Prosthetic device" means anyartificial device or appliance, instrument, apparatus, or contrivance,including their components, parts, accessories, and replacements thereof, usedto replace a missing or surgically removed part of the human body, which isprescribed by a licensed practitioner of medicine, osteopathy, or podiatry andwhich is sold by the practitioner or which is dispensed and sold by a dealer ofprosthetic devices; provided that "prosthetic device" shall not meanany auditory, ophthalmic, dental, or ocular device or appliance, instrument,apparatus, or contrivance;

(8)  Taxes on transient accommodations imposed bychapter 237D and passed on and collected by operators holding certificates ofregistration under that chapter;

(9)  Amounts received as dues by an unincorporatedmerchants association from its membership for advertising media, promotional,and advertising costs for the promotion of the association for the benefit ofits members as a whole and not for the benefit of an individual member or groupof members less than the entire membership;

(10)  Amounts received by a labor organization for realproperty leased to:

(A)  A labor organization; or

(B)  A trust fund established by a labororganization for the benefit of its members, families, and dependents formedical or hospital care, pensions on retirement or death of employees,apprenticeship and training, and other membership service programs.

As used in this paragraph, "labororganization" means a labor organization exempt from federal income taxunder section 501(c)(5) of the Internal Revenue Code, as amended;

(11)  Amounts received from foreign diplomats andconsular officials who are holding cards issued or authorized by the UnitedStates Department of State granting them an exemption from state taxes; and

(12)  Amounts received as rent for the rental orleasing of aircraft or aircraft engines used by the lessees or renters forinterstate air transportation of passengers and goods.  For purposes of thisparagraph, payments made pursuant to a lease shall be considered rentregardless of whether the lease is an operating lease or a financing lease. The definition of "interstate air transportation" is the same as in49 U.S.C. 40102. [L 1993, c 220, pt of §2 and am c 43, §1; am L 1994, c 116,§1; am L 2000, c 38, §1; am L 2001, c 210, §2; am L 2002, c 40, §7; am L 2003,c 135, §5; am L 2004, c 164, §§7, 35(5); am L 2005, c 93, §7; am L 2007, c 239,§§1, 4; am L 2008, c 28, §26]

 

Note

 

  Chapter 415B referred to in paragraph (3)(B) is repealed. For provisions effective July 1, 2002, see chapter 414D.

  The 2008 amendment is retroactive to July 1, 2006 and exemptfrom the December 31, 2009 repeal and reenactment condition by L 2007, c 239,§4.  L 2008, c 28, §43.

  The aggregate tax exemption from the L 2007, c 239 amendmentshall not exceed $400,000 per taxable year ending on or between January 1, 2010and January 1, 2011. L 2009, c 196, §6.

 

Case Notes

 

Decisions under prior law.

  Options available to director of taxation to remedyconstitutional defect in §237-24(18)(C) (1992) and appellant's entitlement torefund if director chose refund as a remedy, discussed.  76 H. 1, 868 P.2d 419.