Instructions For Form G-26 - Use Tax Return (Page 3 of 3) in pdf

INSTRUCTIONS

PAGE 3

FORM G-26

(2010)

Column (b) Exemptions/Deductions

TIONS/DEDUCTIONS” section of Form

other taxes paid to other state, such as

G-26. If you do not have any exemp-

taxes on manufacturing, extraction, and

Step 18 — Explain each exemption and

tions or deductions, enter “0”.

the like, as well as license fees, or trans-

deduction that you are claiming in col-

fer taxes. The amount of credit shall not

umn (b). Add all the exemptions and

Column (g)

exceed the amount of use tax imposed

deductions reported in this section and

Step 11 — Subtract column (f) from col-

by Hawaii on such tangible personal

enter the amount on the SUBTOTAL EX-

umn (e) and enter the result in column

property, services, and/or contracting.

EMPTIONS/DEDUCTIONS CLAIMED

(g), Taxable Amount.

IN COLUMN (b) line.

Line (k)

Column (h)

Step 15 — Subtract line (j) from line (i)

Column (f) Exemptions/Deductions

Step 12 — Multiply column (g) by the

on enter the result on line (k), Total Taxes

Step 19 — Explain each exemption

tax rate of .005 and enter the result, in-

Due.

and deduction that you are claiming in

cluding the cents, in column (h), Tax.

column (f). Add all the exemptions and

Line (l)

Line (i)

deductions reported in this section and

Step 16 — If you file a tax return after

Step 13 — Add column (d) and column

enter the amount on the SUBTOTAL EX-

the due date, and if there is tax due on

(h), and enter the result on line (i), Total

EMPTIONS/DEDUCTIONS CLAIMED

the return, then you must compute pen-

Taxes.

IN COLUMN (f) line.

alty and interest charges. After comput-

Line (j)

ing the amounts, enter the results to the

(Note:

If you write the HRS section

right of “PENALTY $” and “INTEREST $”

number of the exemptions/deductions

Step 14 — Enter the allowable sales

and enter the total of the two amounts

that you are claiming in columns (b) and

or use tax paid to another state.

on line (l).

(f), it will speed the processing of your

Attach to Form G-26 a copy of the re-

return, and minimize the chances of us

ceipt or voucher indicating the payment

If you need help computing the penalty

misunderstanding what you are claim-

of the sales or use tax paid to the other

and interest, please call the Taxpayer

ing. See the Schedule of Use Tax Ex-

state.

Services Branch at 808-587-4242 or

emptions and Deductions at the end of

toll-free 1-800-222-3229; or leave these

A credit against the Hawaii use tax may

these instructions for more information.)

lines blank, and the Department will

be claimed for the amount of sales or

compute the charges for you and send

Step 20 — Add the amounts reported

use taxes imposed by another state (or

you a bill.

any subdivision thereof) and paid by the

in Steps 18 and 19 and enter the total

taxpayer on tangible personal property,

on the TOTAL EXEMPTIONS/DEDUC-

Line (m)

services, and/or contracting before it

TIONS CLAIMED IN COLUMNS (b)

Step 17 — Add line (k) and line (l),

is imported into Hawaii. (Section 238-

AND (f) line.

and enter the result on line (m), Total

3(i).) The credit shall not include any

Amount Due and Payable.

SCHEDULE OF USE TAX EXEMPTIONS AND DEDUCTIONS

(NOTE: ALL SECTION REFERENCES ARE TO THE HAWAII REVISED STATUTES)

Diplomats and Consular Officials:

Unless the following instructions tell you

(2) Apportion the gross value of ser-

not to report the exempt or deducted

The use of property, services, or con-

vices or contracting sold to cus-

amounts, you must report and explain

tracting imported by foreign diplomats

tomers within the State by persons

the exemptions and deductions you are

and consular officials holding cards is-

engaged in business both within

claiming on Form G-26. For circum-

sued by the U.S. Department of State

and without the State to determine

stances under which an exemption or a

granting them an exemption from state

the value of that portion of the ser-

deduction is permitted or allowed, refer

taxes are exempt. Report and explain

vices or contracting that is subject

to the following sections:

these amounts. (Section 238-1.) The

to the general excise tax for the

tax exemption, however, is not applica-

purposes of section 237-21.

Casual Purchases: A sale of tangible

ble to taxes imposed on telecommunica-

personal property by someone not in the

The Director will use the authority to ex-

tion services, other utilities, or gasoline

business of selling the property is called

empt, exclude, or apportion the value of

purchases. For more information, see

a casual sale. A casual sale means an

imported property, services, or contract-

Department of Taxation Announcement

occasional, isolated, irregular, infre-

ing when an exemption, exclusion, or

No. 2000-07.

quent, or incidental sale or transaction

apportionment of gross receipts would

involving tangible personal property that

Director of Taxation’s Authority to

be allowed under the General Excise

is not ordinarily sold in the usual course

Exempt, Exclude or Apportion the

Tax Law in the case of a similar local

Use Tax: Imports of property, services,

of a trade or business. Because gross

transaction. (Section 238-3(a).)

income derived from a casual sale is ex-

or contracting to the extent that the gen-

Drugs and Prosthetic Devices for

cluded from gross income subject to the

eral excise tax would have applied to a

Personal Use: If you are an individual

general excise tax, the landed value of

similarly-situated taxpayer engaged in a

who bought drugs or prosthetic devic-

tangible personal property acquired in

local transaction. The Director of Taxa-

es from a hospital, infirmary, medical

a casual sale also is not subject to the

tion (Director) has the authority to:

clinic, health care facility, pharmacy, or

use tax. For example, if you purchase

(1) Exempt or exclude from the use

a practitioner licensed to administer the

a used car from an individual selling his

tax, property, services, or con-

drug to an individual, the landed value

or her personal car and import that car

tracting, or the use of property,

of the drugs or prosthetic devices is ex-

into Hawaii, report the landed value of

services, or contracting exempted

empt from use tax. Do not report these

the car, but claim this exemption. (Sec-

from the general excise tax; or

amounts. (Section 238-1.)

tion 238-1.)

Instructions For Form G-26 - Use Tax Return Page 3

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