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



(1)  Amounts received from the loading, transportation,
and unloading of agricultural commodities shipped for a producer or produce
dealer on one island of this State to a person, firm, or organization on
another island of this State.  The terms "agricultural commodity",
"producer", and "produce dealer" shall be defined in the
same manner as they are defined in section 147-1; provided that agricultural
commodities 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 defined
in chapter 245; and



(C)  Agricultural, meat, or fish products;



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



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



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



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



in reimbursement of sums paid for common
expenses;



(4)  Amounts received or accrued from:



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



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



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



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



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



(7)  Amounts received by a hospital, infirmary,
medical clinic, health care facility, pharmacy, or a practitioner licensed to
administer the drug to an individual for selling prescription drugs or
prosthetic devices to an individual; provided that this paragraph shall not
apply to any amounts received for services provided in selling prescription
drugs or prosthetic devices.  As used in this paragraph:



"Prescription drugs" are those
drugs defined under section 328-1 and dispensed by filling or refilling a
written or oral prescription by a practitioner licensed under law to administer
the drug and sold by a licensed pharmacist under section 328-16 or
practitioners licensed to administer drugs; and



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



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



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



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



(A)  A labor organization; or



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



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



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



(12)  Amounts received as rent for the rental or
leasing of aircraft or aircraft engines used by the lessees or renters for
interstate air transportation of passengers and goods.  For purposes of this
paragraph, payments made pursuant to a lease shall be considered rent
regardless of whether the lease is an operating lease or a financing lease. 
The definition of "interstate air transportation" is the same as in
49 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 exempt
from 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 amendment
shall not exceed $400,000 per taxable year ending on or between January 1, 2010
and January 1, 2011. L 2009, c 196, §6.



 



Case Notes



 



Decisions under prior law.



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