HRS §239-8
How income is split between Hawaii and other places
This section explains how a company figures out how much of its income is taxed by Hawaii. It uses the company's direct costs of transportation, conveyance, or transmission to decide the share. The method depends on the type of gross income involved.
businesses
The statute, as written — Allocation and apportionment
(a) The gross income included in the measure of the tax, as defined in paragraphs (2) and (3) of the definition of "gross income" in section 239-2, shall be determined by an allocation and separate accounting so far as practicable. (b) If under paragraph (2) of the definition of "gross income" in section 239-2, an apportionment of gross income is necessary, there shall be apportioned to the State and included in the measure of the tax that proportion of the total gross income, so requiring apportionment, that the direct cost of the transportation, conveyance, or transmission designated in paragraph (2) of the definition of "gross income" in section 239-2, bears to the total direct cost of the transportation, conveyance, or transmission the gross income from which requires apportionment. (c) If under paragraph (3) of the definition of "gross income" in section 239-2, an apportionment of gross income is necessary, there shall be apportioned to the State and included in the measure of the tax that proportion of the total gross income, so requiring apportionment, that the total direct cost of the transportation, conveyance, or transmission within the State bears to the total direct cost of the transportation, conveyance, or transmission the gross income from which requires apportionment.
Sections this one refers to
§239-2 Definitions for the public service company tax law
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.