Step-By-Step Instructions For Filling In Your Form G-45 (Periodic Return) (Page 10 of 11) in pdf

exemption on the grants received from the High

Subcontract Deduction*: A prime contractor

Federal excise taxes imposed on articles sold at

Technology Development Corporation.

The

(or a developer) may be eligible for a deduction in

retail and collected from purchasers.

suspension means that the transactions will no

the amount of payments made to a subcontractor

(Section 237-24(11).)

longer be exempt from the GET. This temporary

or a specialty contractor. To claim the deduction,

suspension does not apply to gross income from

the contractor must list the subcontractor and the

Federal taxes imposed on sugar manufactured in

binding written contracts entered into prior to

subcontractor’s Hawaii Tax I.D. No. on Schedule

Hawaii. (Section 237-24(12).)

July 1, 2011, that do not permit the passing on of

GE (Form G-45/G-49). Report and explain these

increased rates of taxes.

amounts. For more information, contact your dis-

Transient accommodations taxes visibly passed

trict tax office for instructions. (Section 237-13(3)

on. (Section 237-24.3(8).)

Stock Exchange Transactions*:

Certain

(B).) There is a temporary suspension for the

amounts received by a domestic or foreign stock

Rental motor vehicle and tour vehicle surcharge

period from July 1, 2011 through June 30, 2013

exchange, and certain amounts received by

taxes visibly passed on. (Section 237-24.7(3).)

for the exemption on the deduction for payments

exchange members by reason of executing a

made to a subcontractor or specialty contractor.

Trade-Ins: For trade-ins, a merchant reduces

securities or product transaction on an exchange,

The suspension means that the transactions will

the price of the new article by the amount of the

are exempt. Report and explain these amounts.

no longer be exempt from the GET. This tempo-

trade-in allowance. The trade-in allowance is

(Section 237-24.5.)

The exemption does not

rary suspension does not apply to gross income

considered a price adjustment and is subtracted

apply to commission or other income received

from binding written contracts entered into prior

from the new article’s sales price and the net

by brokers or dealers from their customers.

to July 1, 2011, that do not permit the passing

amount is reported in column a. Any later sale

There is a temporary suspension for the period

on of increased rates of taxes. See Department

of the traded-in article is reportable at the time of

from July 1, 2011 through June 30, 2013 for the

of Taxation Announcement No. 2011-10 for more

that sale. (Section 237-3(b).)

exemption on certain amounts received by a

information.

domestic or foreign stock exchange, and certain

TRICARE: Effective July 1, 2009, the amounts

amounts received by exchange members. The

Sugar

Cane

Payments

Independent

received by a managed care support contractor

Producers: Certain payments to independent

suspension means that the transactions will no

of the TRICARE program that is established

longer be exempt from the GET. This temporary

sugar cane producers are exempt. Report and

under Title 10 United States Code Chapter 55,

suspension does not apply to gross income from

explain these amounts. (Section 237-24(14).)

as amended, for the actual cost or advancement

binding written contracts entered into prior to

There is a temporary suspension for the period

to third party health care providers pursuant

July 1, 2011, that do not permit the passing on of

from July 1, 2011 through June 30, 2013 for the

to a contract with the United States are

increased rates of taxes.

exemption on certain payments to independent

exempt.

Report and explain these amounts.

sugar cane producers. The suspension means

(Section 237-24(17).)

Stocks, Bonds, and Commodity Futures:

that the transactions will no longer be exempt

Gross proceeds from the sale of securities,

from the GET. This temporary suspension does

Wages:

Amounts received as salaries or

commodity futures, and bonds are exempt and

not apply to gross income from binding written

wages for services rendered by an employee

do not have to be reported. (Section 237-3(b).)

contracts entered into prior to July 1, 2011, that

to an employer are exempt. If your employer is

If you are selling bonds with accrued but unpaid

do not permit the passing on of increased rates

withholding payroll taxes on these wages, you

interest, the interest is considered income that

of taxes.

do not have to report them. If you are being

is received when the bond is sold. The interest

paid as an independent contractor, or if payroll

does not qualify for this exclusion and may need

Taxes Passed On: Amounts received to pay the

taxes are not being withheld, these amounts are

to be reported on the “Interest” line in Part II

following taxes are exempt. Each amount should

taxable and must be reported and explained.

of Forms G-45 and G-49. For example, if you

be reported and explained.

(Section 237-24(6).)

purchased an out-of-state municipal bond at a

Fuel taxes collected by distributors

discounted price and sell it for an appreciated

Wholesale Transactions:

Amounts received

(Section 237-24(8).)

price, the difference is considered accrued, but

from the sales of tangible personal property

unpaid, interest and that portion would be taxable

imported into the State by a licensed taxpayer

Hawaii liquor taxes collected by dealers.

and reported on the “Interest” line in Part II of

to another licensed taxpayer for further resale at

(Section 237-24(9).)

Forms G-45 and G-49. NOTE: Federal bonds’

wholesale are exempt. Report and explain these

accrued interest are exempted. See “Federally

Hawaii cigarette and tobacco taxes paid by

amounts. (Section 237-29.55.)

Preempted Amounts” discussed earlier.

wholesalers. (Section 237-24(10).)

DIVISION OF GROSS INCOME AMONG TAXPAYERS

In general, as mentioned above, the GET is

non-employee realtors.

(Section 237-18(e).)

to the producer. If the producer is a tax exempt

imposed on gross income and no deductions are

Generally, commission sellers pay tax on com-

entity, such as a properly registered nonprofit

allowed for costs of producing that income. In

missions earned, and the principal pays tax on

organization, then the promoter is not taxed

the following special situations, however, the law

gross sales, not the amount net of commissions.

on the producer’s share of the income and the

recognizes the division of gross receipts among

promoter does not have to withhold tax. (Section

Motor Carriers:

Where the transportation of

the taxpayers responsible for those receipts.

237-18(b).)

passengers or property is furnished through

Taxpayers in these situations report their

Tour Packagers: Gross revenues can be divided

arrangements between motor carriers, the gross

respective shares of the gross income received.

income received for the transportation services

between a tour packager or travel agent and a

Coin Operated Devices:

Gross receipts are

is divided between the motor carriers. (Section

provider of tourism related services. (Section

divided between the owner (or operator) of

237-18(h).)

237-18(f).) In addition, gross revenues can be

the device and the owner (or operator) of the

divided between a tour packager and a provider of

Producers and Promoters:

When a person

premises on which the machine is located.

transient accommodations at noncommissioned

furnishing or producing an event or spectacle

(Section 237-18(a).)

negotiated contract rates. (Section 237-18(g).)

(such as a film distributor) and a promoter (such

For more information, see TIR No. 91-8 and

Insurance Agents and Realtors: Gross com-

as a theater owner) stage an event, the promoter

Attorney General Opinion 65-6.

missions are divided among licensed non-em-

pays the tax and withholds the producer’s share

ployee insurance agents, or among licensed

of the tax from the portion of the income payable

SCHEDULE OF USE TAX EXEMPTIONS AND DEDUCTIONS

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

Unless the following instructions tell you not to

Air Pollution Control Facility*: Gross proceeds

of Taxation (DoTax). An exemption may not be

report the exempted/deducted amounts, you must

from, and the tangible personal property furnished

claimed if the APCF does not have a valid certifi-

in conjunction with the construction, reconstruc-

cate from the DOH on file with the DoTax. Report

explain on Schedule GE (Form G-45/G-49) under

tion, erection, operation, use, or maintenance of

and explain these amounts. (Section 237-27.5.)

the “Activities Under Chapter 238, HRS” section,

an air pollution control facility (APCF) are exempt.

Act 105 temporarily suspends this exemption for

the exemptions/deductions you are claiming on

The APCF must be certified by the Department

the period from July 1, 2011 through June 30,

Form G-45 and Form G-49. For circumstances

of Health (DOH) at least once every five years

2013 unless the APCF is certified by the DOH

under which an exemption/deduction is permitted

and file this certification with the Department

before July 1, 2011. Therefore, the suspension

or allowed, refer to the following sections:

Page 10

Step-By-Step Instructions For Filling In Your Form G-45 (Periodic Return) Page 10

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