Section 18-235-38-06.02 - Apportionment of income for air carriers(a) As used in this section: "Flight operating hours" mean the normal air and ground hours of aircraft of an air carrier in scheduled flights and nonscheduled operations. Flight operating hours do not include time spent for repairs and maintenance and delays caused by abnormal events such as strikes, acts of God, and weather conditions.
"Originating revenue within this State" means revenue from the transportation of revenue passengers and revenue cargo that are first received by the air carrier either as originating or connecting traffic at airports within the State.
(1) Originating revenue includes revenue from the carriage of express and mail.(2) Originating revenue does not include passenger receipts that will be turned over to another air carrier as its share of the total passenger receipts. "Revenue tons handled", by an air carrier at an airport, mean the weight in tons of revenue passengers (at two hundred pounds per passenger) and revenue cargo first received as originating or connecting traffic, or finally discharged by the air carrier at the airport.
(1) Revenue tons handled includes express and mail tonnage.(2) For purposes of computing revenue tons handled, revenue passengers do not include those passengers making transfers on connecting flights of the same carrier; however, passengers making voluntary stopovers at a connecting point for twenty-four hours or more shall not be considered to be making connecting flights.(b) Business income of an air carrier shall be apportioned to Hawaii by multiplying the income by a fraction, the denominator of which is three and the numerator of which is the sum of the following three ratios: (1) The ratio of the revenue tons handled by the air carrier at airports within this State during the taxable year to the total revenue tons handled at airports within and without this State during the same period;(2) The ratio of the air carrier's originating revenue within this State for the taxable year to the total originating revenue within and without this State for the same period; and(3) The ratio of the air carrier's flight operating hours within this State for the taxable year to the total flight operating hours within and without this State for the same period.(c) For an air carrier incorporated in Hawaii, the numerator in each of the ratios in subsection (b)(1), (2), and (3) shall include that portion of revenue tons, originating revenues, and flight operating hours attributable to jurisdictions in which the air carrier is not taxable.Haw. Code R. § 18-235-38-06.02
[Eff 9/3/94] (Auth: HRS §§ 231-3(9), 235-38, 235-118) (Imp: HRS § 235-38)
§ 18-235-38-06.02 is based substantially upon § 18-235-5(e)(5)(B). [Eff 2/16/82; am and ren 9/3/94]