September 4, 1998

DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 98-19



RE: Adoption of amendments and renumbering of section 18-235-1, Hawaii Administrative Rules,
relating to definitions involving residency determinations and persons with disabilities.

The Department of Taxation ("Department") has amended and renumbered section 18-235-1, Hawaii Administrative Rules (HAR), relating to definitions involving residency determinations and persons with disabilities, as sections 18-235-1.01 through 18-235-1.17, HAR. The existing rule, promulgated in 1982, substantially relied on examples to provide guidance in determining an individual's residency status for Hawaii income tax purposes. The amendments to section 18-235-1, HAR, specifically define terms such as "resident," "nonresident," and "alien," and provide a comprehensive discussion of factors for establishing residency in Hawaii based on Tax Information Release (TIR) No. 97-1. The amendments also add sections defining terms with respect to persons who are disabled based on TIR No. 89-3 and TIR No. 94-2. The amendments to section 18-235-1, HAR, ease the burden of compliance for taxpayers by providing clear guidance on issues involving residency determinations and persons with disabilities.

A copy of the rule and other tax information may be downloaded from the Department's website at: http://www.state/hi.us/tax/tax.html. A copy of the rule and other tax information may also be obtained by calling the Department's Forms Request Line at: 808-587-7572. Persons who are not calling from Oahu may request a copy of the rules by calling 1-800-222-7572.

/s/
RAY K. KAMIKAWA
Director of Taxation
 

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