§237-24  Amounts not taxable.  Thischapter shall not apply to the following amounts:

(1)  Amounts received under life insurance policiesand contracts paid by reason of the death of the insured;

(2)  Amounts received (other than amounts paid byreason of death of the insured) under life insurance, endowment, or annuitycontracts, either during the term or at maturity or upon surrender of thecontract;

(3)  Amounts received under any accident insurance orhealth insurance policy or contract or under workers' compensation acts oremployers' liability acts, as compensation for personal injuries, death, orsickness, including also the amount of any damages or other compensationreceived, whether as a result of action or by private agreement between theparties on account of the personal injuries, death, or sickness;

(4)  The value of all property of every kind and sortacquired by gift, bequest, or devise, and the value of all property acquired bydescent or inheritance;

(5)  Amounts received by any person as compensatorydamages for any tort injury to the person, or to the person's characterreputation, or received as compensatory damages for any tort injury to ordestruction of property, whether as the result of action or by privateagreement between the parties (provided that amounts received as punitivedamages for tort injury or breach of contract injury shall be included in grossincome);

(6)  Amounts received as salaries or wages forservices rendered by an employee to an employer;

(7)  Amounts received as alimony and other similarpayments and settlements;

(8)  Amounts collected by distributors as fuel taxeson "liquid fuel" imposed by chapter 243, and the amounts collected bysuch distributors as a fuel tax imposed by any Act of the Congress of theUnited States;

(9)  Taxes on liquor imposed by chapter 244D ondealers holding permits under that chapter;

(10)  The amounts of taxes on cigarettes and tobaccoproducts imposed by chapter 245 on wholesalers or dealers holding licensesunder that chapter and selling the products at wholesale;

(11)  Federal excise taxes imposed on articles sold atretail and collected from the purchasers thereof and paid to the federalgovernment by the retailer;

(12)  The amounts of federal taxes under chapter 37 ofthe Internal Revenue Code, or similar federal taxes, imposed on sugarmanufactured in the State, paid by the manufacturer to the federal government;

(13)  An amount up to, but not in excess of, $2,000 ayear of gross income received by any blind, deaf, or totally disabled personengaging, or continuing, in any business, trade, activity, occupation, orcalling within the State; a corporation all of whose outstanding shares areowned by an individual or individuals who are blind, deaf, or totally disabled;a general, limited, or limited liability partnership, all of whose partners areblind, deaf, or totally disabled; or a limited liability company, all of whosemembers are blind, deaf, or totally disabled;

(14)  [Repeal and reenactment on December 31, 2013.L 2009, c 70, §4.]  Amounts received by a producer of sugarcane from themanufacturer to whom the producer sells the sugarcane, where:

(A)  The producer is an independent canefarmer, so classed by the Secretary of Agriculture under the Sugar Act of 1948(61 Stat. 922, Chapter 519) as the Act may be amended or supplemented;

(B)  The value or gross proceeds of the sale ofthe sugar, and other products manufactured from the sugarcane, are included inthe measure of the tax levied on the manufacturer under section 237-13(1) or(2);

(C)  The producer's gross proceeds of sales aredependent upon the actual value of the products manufactured therefrom or theaverage value of all similar products manufactured by the manufacturer; and

(D)  The producer's gross proceeds of sales arereduced by reason of the tax on the value or sale of the manufactured products;

(15)  [Repeal and reenactment on December 31, 2013.L 2009, c 70, §4.] Money paid by the State or eleemosynary child-placingorganizations to foster parents for their care of children in foster homes;

(16)  [Repeal and reenactment on December 31, 2013.L 2009, c 70, §4.] Amounts received by a cooperative housing corporationfrom its shareholders in reimbursement of funds paid by the corporation forlease rental, real property taxes, and other expenses of operating andmaintaining the cooperative land and improvements; provided that thecooperative corporation is a corporation:

(A)  Having one and only one class of stockoutstanding;

(B)  Each of the stockholders of which isentitled solely by reason of the stockholder's ownership of stock in thecorporation, to occupy for dwelling purposes a house, or an apartment in abuilding owned or leased by the corporation; and

(C)  No stockholder of which is entitled(either conditionally or unconditionally) to receive any distribution not outof earnings and profits of the corporation except in a complete or partialliquidation of the corporation; and

(17)  [Repealed on December 31, 2013. L 2009, c 70,§4.]  Amounts received by a managed care support contractor of the TRICAREprogram that is established under Title 10 United States Code chapter 55, asamended, for the actual cost or advancement to third party health careproviders pursuant to a contract with the United States. [L 1935, c 141, §4(2);am L 1939, c 47, §1; am L 1943, c 81, §2; RL 1945, §5460; am L 1945, c 253, §4;am L 1947, c 213, §1; am L 1949, c 343, §11; am L 1953, c 229, §1; am L 1955, c246, §5; RL 1955, §117-21; am L 1957, c 34, §11(k); am L 1959, c 277, §4(a); amL Sp 1959 2d, c 1, §16; am L 1964, c 5, §2; am L 1965, c 201, §§3, 25; am L1966, c 28, §4; am L 1967, c 297, §§3, 4; HRS §237-24; am L 1968, c 26, §2; amL 1971, c 204, §7; am L 1973, c 91, §3; am L 1975, c 41, §1; am L 1979, c 74,§1 and c 105, §24; am L 1985, c 16, §7 and c 88, §1; gen ch 1985; am L 1986, c86, §1, c 306, §2, and c 340, §9; am L 1987, c 7, §1, c 15, §1, c 39, §5, and c292, §1; am L 1988, c 65, §2; am L 1989, c 8, §1; am L 1992, c 107, §1; am L1993, c 43, §1 and c 220, pt of §2; am L 1994, c 141, §2; am L 2002, c 110, §3;am L 2009, c 70, §2]

 

Note

 

  Former paragraphs (17) to (25) now part of §237-24.3.

 

Attorney General Opinions

 

  Subsection (p) exempts certain reimbursement funds ofcooperative housing corporations from the general excise tax. Att. Gen. Op.68-2.

  Pars. (18), (21):  Effect of resolution of House relating toenforcement of provisions.  Att. Gen. Op. 68-6.

 

Case Notes

 

  Paragraph (6).  Fees paid to director of corporation are notexempt as salary or wages paid to employee.  53 H. 435, 496 P.2d 1.