Haw. Code R. § 18-235-38-06.05
"Outer-jurisdictional property" means tangible personal property, such as orbiting satellites, undersea transmission cables, and the like, that are owned or rented by the taxpayer and used in the business of publishing, licensing, selling, or otherwise distributing printed material, but are not physically located in any particular state.
"Print or printed material" includes the physical embodiment or printed version of any thought or expression, such as a play, story, article, column, or other literary, commercial, educational, artistic, or other written or printed work. The determination of whether an item is, or consists of, print or printed material shall be made without regard to its content. Printed material may take the form of a book, newspaper, magazine, periodical, trade journal, or any other form of printed matter, and may be contained on any medium or property.
"Purchaser" and "subscriber" mean the individual, residence, business, or other outlet which is the ultimate or final recipient of the print or printed material. Neither of these terms includes a wholesaler or other distributor of print or printed material.
"Terrestrial facility" shall include any telephone line, cable, fiber optic, microwave, earth station, satellite dish, antenna, or other relay system or device that is used to receive, transmit, relay, or carry any data, voice, image, or other information that is transmitted from or by any outer-jurisdictional property to the ultimate recipient of the information.
The value of outer-jurisdictional property to be attributed to the numerator of the property factor of Hawaii shall be determined by the ratio that the number of uplinks and downlinks (sometimes referred to as "half-circuits") that were used during the tax period to transmit from Hawaii and to receive in Hawaii any data, voice, image, or other information bears to the total number of uplinks and downlinks, or half-circuits, that the taxpayer used for transmissions everywhere.
If information regarding uplink and downlink or half-circuit usage is not available, or if that measurement of activity is not applicable to the type of outer-jurisdictional property used by the taxpayer, the value of such property to be attributed to the numerator of the property factor of Hawaii shall be determined by the ratio that the amount of time (in terms of hours and minutes of use), or any other measurement of use of outer-jurisdictional property that was used during the tax period to transmit from Hawaii and to receive in Hawaii any data, voice, image, or other information, bears to the total amount of time or other measurement of use that was used for transmissions everywhere.
Example: One example of the use of outer-jurisdictional property is where the taxpayer either owns its own communications satellite or leases the use of uplinks, downlinks, circuits, or time on a communications satellite for the purpose of sending messages to its newspaper printing facilities or employees in a state. The state or states in which any printing facility that receives the satellite communications is located and the state from which the communications were sent, under this section, would apportion the cost of the owned or rented satellite to their respective property factors based upon the ratio of the in-state use of the satellite to its total usage everywhere.
Assume that ABC Newspaper Co. owns a total of $400,000,000 of property everywhere and that, in addition, it owns and operates a communication satellite for the purpose of sending news articles to its printing plant in Hawaii, as well as for communicating with its printing plants and facilities or news bureaus, employees, and agents located in other states and throughout the world. Also assume that the total value of its real and tangible personal property that was permanently located in Hawaii for the entire income year was valued at $3,000,000. Assume also that the total original cost of the satellite is $100,000,000 for the tax period and that of the 10,000 uplinks and downlinks of satellite transmissions used by the taxpayer during the tax period, 200 or 2 percent are attributable to satellite communications received in and sent from Hawaii. Assume further that the company's mobile property has an original cost of $4,000,000 and was used in Hawaii for 95 days.
The property factor is determined as follows:
| Value of property permanently in Hawaii: | $3,000,000 |
| Value of mobile property (95/365 x $4,000,000): | $1,041,096 |
| Value of satellite property used in-state (.02 x $100,000,000): | $2,000,000 |
| Total value of property attributable to state: | $6,041,096 |
| Property factor ($6,041,096/$500,000,000) | 0.012082 |
The circulation factor for an individual publication shall be determined by reference to the rating statistics as reflected in such sources as Audit Bureau of Circulations or other comparable sources, provided that the source selected is consistently used from year to year for this purpose. If none of the foregoing sources are available, or, if available, none is in form or content sufficient for these purposes, then the circulation factor shall be determined from the taxpayer's books and records.
Haw. Code R. § 18-235-38-06.05