§239-11  Exemption of certain contractcarriers.  (a)  There shall be exempted and excluded from the measure ofthe tax imposed by this chapter the gross income from any contract carrier bywater which is engaged primarily in the business of transporting personsbetween harbors or wharves of the various counties for interisland cruiseswithin the State; provided that such exemption shall be applicable for theperiod July 1, 1981, to June 30, 1996.

(b)  Any contract carrier and related partners,if any, claiming an exemption under subsection (a) shall submit an annualfinancial report, prepared by an independent certified public accountant, tothe department of taxation and to the department of business, economicdevelopment, and tourism on or before the fifteenth day of the fifth monthfollowing the close of each taxable year for which the exemption is beingclaimed; provided that in addition to reports in 1992, 1993, 1994, and 1995, anannual financial report shall be due on or before March 1, 1996.  The annualfinancial report, prepared in a form approved by the director of taxation,shall include but not be limited to:

(1)  A balance sheet of assets and liabilities;

(2)  A statement of income and expenses;

(3)  Supplementary information to financial statements;

(4)  A summary of financial condition; and

(5)  An apportionment of income and expenses of thecontract carrier and related partners, if any, within and without the State.

Within thirty days of the receipt of thefinancial report from the contract carrier and related partners, if any, thedirector of taxation shall submit relevant financial data to the legislature. Failure to comply with this subsection by the contract carrier or relatedpartners, if any, as determined by the director of taxation, shall constitute awaiver of the right to claim the exemption. [L 1981, c 240, §1; am L 1985, c30, §1; am L 1987, c 20, §1; am L 1991, c 228, §1]