§237-24.7  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 by the operator of a hotel fromthe owner of the hotel or from a time share association, and amounts receivedby the suboperator of a hotel from the owner of the hotel, from a time shareassociation, or from the operator of the hotel, in amounts equal to and whichare disbursed by the operator or suboperator for employee wages, salaries,payroll taxes, insurance premiums, and benefits, including retirement,vacation, sick pay, and health benefits.  As used in this paragraph:

"Employee" means employees directlyengaged in the day-to-day operation of the hotel and employed by the operatoror suboperator.

"Hotel" means an operation asdefined in section 445-90 or a time share plan as defined in section 514E-1.

"Operator" means any person who,pursuant to a written contract with the owner of a hotel or time shareassociation, operates or manages the hotel for the owner or time shareassociation.

"Owner" means the fee owner orlessee under a recorded lease of a hotel.

"Suboperator" means any person who,pursuant to a written contract with the operator, operates or manages the hotelas a subcontractor of the operator.

"Time share association" means an"association" as that term is defined in section 514E-1;

(2)  Amounts received by the operator of a countytransportation system operated under an operating contract with a politicalsubdivision, where the political subdivision is the owner of the countytransportation system.  As used in this paragraph:

"County transportation system"means a mass transit system of motorized buses providing regularly scheduledtransportation within a county.

"Operating contract" or"contract" means a contract to operate and manage a politicalsubdivision's county transportation system, which provides that:

(A)  The political subdivision shall exercisesubstantial control over all aspects of the operator's operation;

(B)  The political subdivision controls thedevelopment of transit policy, service planning, routes, and fares; and

(C)  The operator develops in advance a draftbudget in the same format as prescribed for agencies of the politicalsubdivision.  The budget must be subject to the same constraints and controlsregarding the lawful expenditure of public funds as any public sector agency,and deviations from the budget must be subject to approval by the appropriatepolitical subdivision officials involved in the budgetary process.

"Operator" means any person who,pursuant to an operating contract with a political subdivision, operates ormanages a county transportation system.

"Owner" means a politicalsubdivision that owns or is the lessee of all the properties and facilities ofthe county transportation system (including buses, real estate, parkinggarages, fuel pumps, maintenance equipment, office supplies, etc.), and thatowns all revenues derived therefrom;

(3)  Surcharge taxes on rental motor vehicles imposedby chapter 251 and passed on and collected by persons holding certificates ofregistration under that chapter;

(4)  Amounts received by the operator of orchard propertiesfrom the owner of the orchard property in amounts equal to and which aredisbursed by the operator for employee wages, salaries, payroll taxes,insurance premiums, and benefits, including retirement, vacation, sick pay, andhealth benefits.  As used in this paragraph:

"Employee" means an employeedirectly engaged in the day-to-day operations of the orchard properties andemployed by the operator.

"Operator" means a producer who,pursuant to a written contract with the owner of the orchard property, operatesor manages the orchard property for the owner where the property contains anarea sufficient to make the undertaking economically feasible.

"Orchard property" means any realproperty that is used to raise trees with a production life cycle of fifteenyears or more producing fruits or nuts having a normal period of developmentfrom the initial planting to the first commercially saleable harvest of notless than three years.

"Owner" means a fee owner or lesseeunder a recorded lease of orchard property;

(5)  Taxes on nursing facility income imposed bychapter 346E and passed on and collected by operators of nursing facilities;

(6)  Amounts received under property and casualtyinsurance policies for damage or loss of inventory used in the conduct of atrade or business located within the State or a portion thereof that isdeclared a natural disaster area by the governor pursuant to section 209-2;

(7)  Amounts received as compensation by communityorganizations, school booster clubs, and nonprofit organizations under acontract with the chief election officer for the provision and compensation ofprecinct officials and other election-related personnel, services, andactivities, pursuant to section 11-5;

(8)  Interest received by a person domiciled outsidethe State from a trust company (as defined in section 412:8-101) acting aspayment agent or trustee on behalf of the issuer or payees of an interestbearing instrument or obligation, if the interest would not have been subjectto tax under this chapter if paid directly to the person domiciled outside theState without the use of a paying agent or trustee; provided that if theinterest would otherwise be taxable under this chapter if paid directly to theperson domiciled outside the State, it shall not be exempt solely because ofthe use of a Hawaii trust company as a paying agent or trustee;

(9)  Amounts received by a management company fromrelated entities engaged in the business of selling interstate or foreigncommon carrier telecommunications services in amounts equal to and which aredisbursed by the management company for employee wages, salaries, payrolltaxes, insurance premiums, and benefits, including retirement, vacation, sickpay, and health benefits.  As used in this paragraph:

"Employee" means employees directlyengaged in the day-to-day operation of related entities engaged in the businessof selling interstate or foreign common carrier telecommunications services andemployed by the management company.

"Management company" means anyperson who, pursuant to a written contract with a related entity engaged in thebusiness of selling interstate or foreign common carrier telecommunicationsservices, provides managerial or operational services to that entity.

"Related entities" means:

(A)  An affiliated group of corporations withinthe meaning of section 1504 (with respect to affiliated group defined) of thefederal Internal Revenue Code of 1986, as amended;

(B)  A controlled group of corporations withinthe meaning of section 1563 (with respect to definitions and special rules) ofthe federal Internal Revenue Code of 1986, as amended;

(C)  Those entities connected through ownershipof at least eighty per cent of the total value and at least eighty per cent ofthe total voting power of each such entity (or combination thereof), includingpartnerships, associations, trusts, S corporations, nonprofit corporations,limited liability partnerships, or limited liability companies; and

(D)  Any group or combination of the entitiesdescribed in paragraph (C) constituting a unitary business for income taxpurposes;

whether or not the entity is located withinor without the State or licensed under this chapter; and

(10)  Amounts received as grants under section 206M-15.[L 1989, c 351, §1; am L 1991, c 229, §1 and c 263, §10; am L 1992, c 252, §1;am L 1993, c 129, §§2, 4 and c 315, §2; am L 1994, c 230, §§2, 4; am L 1995, c11, §16, c 71, §4, and c 133, §1; am L 1998, c 214, §2 and c 245, §2; am L1999, c 165, §2; am L 2001, c 35, §3; am L 2007, c 239, §§2, 4]

 

Note

 

  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.

 

Cross References

 

  Qualified improvement tax credit, see chapter 235D.