§237-27  Exemption of certain petroleumrefiners.  (a)  As used in this section:

(1)  "Petroleum products" means petroleum,any distillate, fraction, or derivative of petroleum, natural gas or itscomponents, gas manufactured from a petroleum product, and any product derivedfrom the gas or from the manufacture thereof, such as benzene, xylene, toluene,acetylene, tars, components of tars, and ammonia.

(2)  "Refiner" means any person who, in theState, engages in the business of refining petroleum products and is taxableunder this chapter, upon the value or gross proceeds of sales of the petroleumproducts resultant from the business.  A person who is engaged in business as arefiner and also in other business shall be deemed a refiner only in respect ofthe business that produces the products included in the measure of the taximposed by this chapter.

(3)  "Refining" means:

(A)  Any process performed by a refiner thatincludes a change in the character or properties of a petroleum product throughthe application of heat, or

(B)  The compounding by a refiner of apetroleum product with a product that has been refined by the refiner by theprocess stated in clause (A).

(b)  There shall be excluded from the measureof the tax on a refiner such part of the petroleum products resultant from therefiner's business as is to be further refined by another refiner, to theextent that the petroleum products resultant from such further refining will be(or but for this subsection would be) included in the measure of the tax onsuch other refiner, and where petroleum products are to be used partly for suchrefining and partly for other purposes, the proportion used for each purposeshall be determined upon the basis of weight or BTU content. [L 1953, c 274,§3; RL 1955, §117-22; HRS §237-27; gen ch 1985]