Act 64 effectuates an agreement entered into by and among the State of Hawaii, the City and County of Honolulu, the County of Kauai, the County of Hawaii, the County of Maui, and a number of public service companies.  Act 64 is effective beginning July 1, 2001.

Act 64 provides for a sharing of the public service company (PSC) tax revenues with those counties that establish by ordinance an exemption from real property tax for public service companies.  Effective for public service company tax payments due and payable on or after July 1, 2001, the portion of the PSC tax imposed by section 239-5(a), Hawaii Revised Statutes (HRS), over 4 percent (but not less than 1.885 percent) will be paid directly to those counties that establish by ordinance an exemption from real property tax for public service companies.  Any PSC tax that is due and payable prior to July 1, 2001 is to be paid in full to the State together with any interest and penalties that may be due.

Act 64 also clarifies that the PSC tax is a tax measured by gross income and is a means of taxing the personal property, including going concern value, of public service companies by removing references to the taxation of real property.

The Department may be revising the PSC tax forms because of Act 64.

Current forms and other tax information are available at the Department's website at:   www.state.hi.us/tax.  On Oahu, forms may be ordered by calling the Department's Forms Request Line at:  587-7572.  Persons who are not calling from Oahu, may call:  1-800-222-7572 (toll-free) to receive forms by mail or by fax.

/s/
MARIE Y. OKAMURA
Director of Taxation

HRS Section Explained:  HRS Sections 239-3, 239-4, 239-5, 239-7, and 239-10.