December 14, 1994


RE:  Adoption of New Administration of Taxes Rules and Amendments and New Sections of Income Tax Rules.
Administration of Taxes Rules

The new rules implement Act 115, Session Laws of Hawaii 1994, Relating to the Public Disclosure of Written Opinions of the Department of Taxation. The new rules were adopted on November 4, 1994, and became effective on November 25, 1994.

Income Tax Rules

  1. Section 18-235-7, Hawaii Administrative Rules (HAR), relating to pensions, federal exclusions, and net operating losses.

  2. The amendments, a reorganization and expansion of the existing rule, were adopted on November 22, 1994, and became effective on December 8, 1994.

  3. New sections 18-235-21-01 to 18-235-38.5-02, HAR, relating to the division of the taxable income of a multistate taxpayer among the states in which the taxpayer does business.

  4. These rules are based substantially upon the Multistate Tax Commission (MTC) general apportionment regulations, MTC Reg. Article IV. The MTC promulgated these regulations in order to achieve uniform treatment of interstate income among the states in the United States. These rules were adopted on October 24, 1994, and became effective  on November 25, 1994.

  5. Amendments to sections 18-235-61, 18-235-92, 18-235-97, and 18-235-98, HAR, relating to the withholding and payment of income tax. The amendments clarify the existing rules, amend the existing rules to conform with statutory amendments which have been made since 1978, or amend the existing rules to adopt administrative  practices which have been instituted by the Department in order to conform with statutory amendments made since 1978. These rules were adopted on September 21, 1994, and became effective on October 13, 1994.
Director of Taxation