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HRS §235-38.5

How the tax department must apply state tax law

This section tells the Hawaii tax department how to apply state tax law. It says the department must not use the worldwide method of unitary taxation that a court case allowed. Instead, it must keep applying the law the way it did before that case.

courts

The statute, as written — Application

It is the intent of the legislature that in administering this chapter, this part, and sections 235-4 and 235-5 or as a member of or administering the multistate tax compact under chapter 255 the department of taxation shall not use or allow the use of the worldwide method of unitary taxation upheld in Container Corporation of America v. The Franchise Tax Board, 463 U.S. 159. It is the intent of the legislature that the department of taxation shall continue to apply this chapter, part, sections 235-4 and 235-5, and chapter 255 as they were applied before the above case was decided.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§235-4 Who pays Hawaii income tax and on what income

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.