(a) There shall be levied and assessed upon each airline a tax of four per cent of its gross income each year from the airline business; provided that if an airline adopts a rate schedule for students in grade twelve or below traveling in school groups providing such students at reasonable hours a rate less than one-half of the regular adult fare, the tax shall be three per cent of its gross income each year from the airline business.

Terms Used In Hawaii Revised Statutes 239-6

  • Carrier: means a person who engages in transportation, and does not include a person such as freight forwarder or tour packager who provides transportation by contracting with others, except to the extent that such person oneself engages in transportation. See Hawaii Revised Statutes 239-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract carrier: means a person other than a public utility or taxicab which, under contracts or agreements, engages in the transportation of persons or property for compensation, by land, water, or air. See Hawaii Revised Statutes 239-2
  • gross income: includes charges billed for mobile telecommunications services provided by a home service provider to a customer with a place of primary use in this State when the mobile telecommunications services originate and terminate within the same state; provided that all such charges for mobile telecommunications services that are billed by or for the home service provider are deemed to be provided by the home service provider at the customer's place of primary use, regardless of where the mobile telecommunications services originate, terminate, or pass through. See Hawaii Revised Statutes 239-2
  • Motor carrier: means a common carrier or contract carrier transporting persons or property for compensation on the public highways, other than a public utility or taxicab. See Hawaii Revised Statutes 239-2
  • Personal property: All property that is not real property.
(b) There shall be levied and assessed upon each motor carrier, each common carrier by water, and upon each contract carrier other than a motor carrier, a tax of four per cent of its gross income each year from the motor carrier or contract carrier business.
(c) The tax imposed by this section is a means of taxing the personal property of the airline or other carrier, tangible and intangible, including going concern value, and is in lieu of the tax imposed by chapter 237 but is not in lieu of any other tax.
(d) Notwithstanding subsections (a), (b), and (c), the rate of tax upon the portion of the gross income of a motor carrier which consists of the receipts from the sale of its products or services to a contractor shall be one-half of one per cent; provided that there is a resale of the products or services and the resale by the contractor is subject to taxation at the highest rate under § 237-13; the gross income of the motor carrier is not divided as provided in the definition of “gross income” in § 239-2 for the tax imposed under this chapter or chapter 237; and the gross income of the motor carrier from the sale of its products or services to the contractor is not subject to a deduction under chapter 237 by the contractor; and in the case of services provided by the motor carrier, the benefit of the service passes to the customer of the contractor as an identifiable element of the contracting or service provided by the contractor and does not constitute overhead as defined in § 237-1.

For purposes of this subsection, “contractor” has the same meaning as defined in section 237-6.

(e) Notwithstanding subsections (a) through (d), beginning on October 1, 2001, the tax under this chapter shall not apply to airlines, motor carriers, common carriers by water, and contract carriers other than motor carriers; provided that the gross income received on or after October 1, 2001, by these carriers shall be subject to the tax imposed under chapter 237. For the taxable year in which October 1, 2001 occurs, the tax imposed and due under this chapter for the affected carriers shall be abated in an amount equal to:

(1) The tax imposed on the first day of the taxpayer’s taxable year in which October 1, 2001 occurs;
(2) Divided by the number of months in the taxpayer’s affected taxable year; and
(3) Multiplied by the number of months in the taxpayer’s taxable year remaining after September 30, 2001.
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