Step-By-Step Instructions For Filling In Your Form G-45 (Periodic Return) (Page 8 of 11) in pdf

Enterprise Zones*: There are tax incentives

under the federal food stamp program, or the

insurance contracts to replace lost income, or

for businesses in properly designated enterprise

Special Supplemental Food Program for Women,

amounts paid under any insurance contracts to

Infants and Children, are exempt. Report and

zones (EZ). Designation of zones and certification

repair or replace inventory property, including

of businesses in those zones are administered

explain these amounts. (Section 237-24.3(6).)

crop losses, are considered taxable. Report all

by DBEDT. Report and explain these amounts.

of these amounts on the “All Others” line in Part

Foreign Trade Zone Sales: Sales of privileged

(Section 209E-11.) Caution: Not all sales which

II of Forms G-45 and G-49, even if the insurance

foreign

merchandise,

nonprivileged

foreign

count towards an EZ company’s qualification for

proceeds replace inventory property that other-

merchandise, domestic merchandise, or zone-

the tax benefits as set by DBEDT are exempt

wise would have been sold at wholesale. For

restricted merchandise which are admitted into

from the GET since some types of sales can be

more information, see TIR No. 92-7. If the dam-

a foreign-trade zone and made directly to any

used in determining whether an EZ company has

age or loss of inventory property took place in an

common carrier in interstate or foreign commerce

met the annual requirements for certification,

area declared a natural disaster area, an exemp-

for

consumption

out-of-state

are

exempt,

but those same sales may not necessarily be

tion may be claimed under “Insurance Proceeds

provided that the sale takes place entirely within

exempt from the GET. For example, retail sales

Received Because of a Natural Disaster”.

the zone. Report and explain these amounts.

of agricultural goods produced or processed

(Section 212-8.)

Insurance Proceeds Received Because of a

in the EZ will count towards an EZ company’s

Natural Disaster: If you receive amounts un-

annual certification, but the sales are not exempt

Foster Parents: Foster parents are not taxable

der property and casualty insurance policies for

from the GET, unless they are sales of genetically

on amounts they receive from the State or elee-

damage or loss of inventory used in a trade or

modified agricultural products.

mosynary child-placing organizations for their

business located within an area declared a natu-

care of children in foster homes. Do not report

Act 105 temporarily suspends this exemption for

ral disaster area by the Governor, this exemp-

these amounts. (Section 237-24(15).)

the period from July 1, 2011 through June 30,

tion applies. Report and explain these amounts.

2013 unless the business is certified by DBEDT

(Section 237-24.7(6).)

Geothermal Power*: Amounts received from

before July 1, 2011. Therefore, the suspension

selling geothermal power are exempt. Report

Intercompany Charges:

Charges for legal,

applies to any new EZ business certified by

and explain these amounts. (Section 182-16.)

accounting,

managerial,

and

administrative

DBEDT on or after July 1, 2011. This temporary

services (including related overhead costs) fur-

suspension does not apply to gross income from

Gifts and Bequests: Any property acquired by

nished by one related entity to another, or inter-

binding written contracts entered into prior to

gift, bequest, or devise is exempt. Do not report

est on loans or advances to related entities, are

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

these amounts. (Section 237-24(4).)

not taxable. Effective July 1, 2001, the amount

increased rates of taxes.

received, charged, or attributable to services us-

Hawaii Convention Center Operator: Amounts

Exported Services: The value or gross proceeds

ing computer software and hardware, information

received after June 13, 2007, by the operator of

received by a contractor, service provider, or

technology services, and database management

the Hawaii convention center for reimbursement

seller from the sale of contracting or services to a

that is furnished by one related entity to another

of costs or advances made pursuant to a contract

customer for resale, consumption, or use outside

related entity is exempt. Related entities are gen-

with the Hawaii tourism authority under section

of the State are exempt, provided the customer

erally those related through 80% common owner-

201B-7 are exempt. Report and explain these

furnishes Form G-61 certifying as such to the

ship and at least 80% of the total voting power;

amounts. (Section 237-24.75(2).)

contractor, service provider, or seller. Report and

see section 237-23.5(a), for more information.

Hotel Operator:

Amounts received by the

explain these amounts. (Section 237-29.53.) For

Report and explain these amounts.

(Section

operator of a hotel from the owner of the hotel or

more information, see TIR No. 2009-02.

237-23.5(a).)

from a timeshare association, and disbursed by

Federal Cost-Plus Contractors*:

Labor Organizations*:

If you are

A labor organization

the hotel operator for employee wages, salaries,

a federal cost-plus contractor, you may elect to

that is exempt from federal income tax under

payroll taxes, insurance premiums and benefits

deduct any amounts that you were reimbursed

section 501(c)(5) of the Internal Revenue Code

(including retirement, vacation, sick pay, and

under the contract for materials, plant, or equip-

is not taxable on rents for real property leased

health benefits) are exempt. If you are a hotel

ment. Report and explain these amounts. In

to: (A) another labor organization, or (B) a trust

operator claiming this exemption for amounts

addition, you must certify that you are taxable

providing membership service programs such

received from a timeshare association, you must

with respect to the gross proceeds of the sale,

as a pension plan, a common fund for medical

first obtain certification from the Department of

and that you elect to have the tax on the gross

or hospital care, or apprenticeship and training.

Taxation. See the instructions for Form G-79 for

income computed the same as upon a sale to

Report and explain these amounts.

(Section

information on how to obtain certification. Report

the state government. Please attach the certifi-

237-24.3(10).) There is a temporary suspension

and explain these amounts on Schedule GE

cation on a separate sheet. (Section 237-13(3)

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

(Form G-45/G-49) and attach your certified Form

(C).)

There is a temporary suspension for the

2013 for the exemption on the amounts received

G-79. (Section 237-24.7(1).)

period from July 1, 2011 through June 30, 2013

by labor organizations for rents received from

Hotel Suboperator: Amounts received by the

for the exemption on the amounts reimbursed

certain organizations. The suspension means

suboperator of a hotel from the owner of the

under contract for materials, plant, or equipment.

that the transactions will no longer be exempt

hotel, from a timeshare association, or from

The suspension means that the transactions will

from the GET. This temporary suspension does

the operator of the hotel, and disbursed by the

no longer be exempt from the GET. This tempo-

not apply to gross income from binding written

hotel suboperator for employee wages, salaries,

rary suspension does not apply to gross income

contracts entered into prior to July 1, 2011, that

payroll taxes, insurance premiums and benefits

from binding written contracts entered into prior

do not permit the passing on of increased rates

(including retirement, vacation, sick pay, and

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

of taxes.

health benefits) are exempt. If you are a hotel

of increased rates of taxes.

Leases and Subleases of Real Property*: A

suboperator claiming this exemption, you must

Federally Preempted Amounts: Gross income

deduction is allowed to a taxpayer who leases

first obtain certification from the Department of

is not taxed if the Constitution and laws of the

real property from a lessor under a written lease,

Taxation. See the instructions for Form G-79 for

United States prohibit the State of Hawaii from

and subsequently subleases that same real

information on how to obtain certification. Report

taxing it. If you are claiming this exemption, you

property to a sublessee under a written lease.

and explain these amounts on Schedule GE

must enter the amount claimed to be exempt

The deduction is computed by multiplying the

(Form G-45/G-49) and attach your certified Form

in Column b, and on Schedule GE (Form

gross proceeds paid by the taxpayer to the lessor

G-79. (Section 237-24.7(1).)

G-45/G-49). Your explanation of this exemption

by a rate to be phased in over a 7-year period as

Insurance Proceeds: Amounts received under

must include a description of the constitutional

follows: 1998 - 0.125; 1999 - 0.25; 2000 - 0.375;

life insurance contracts because of the death

provision or federal statute which you claim

2001 - 0.50; 2002 - 0.625; 2003 - 0.75; and 2004

of the insured (section 237-24(1)), amounts re-

entitles you to the exemption. If possible, please

and thereafter - 0.875. The taxpayer calculates

ceived under life insurance, endowment, or an-

include a reference to the United States Code

the sublease deduction using Form G-72. Report

nuity contracts paid either during the term of

(U.S.C.) to identify any federal law.

(Section

and explain these amounts. (Section 237-16.5.)

the contract or at maturity (section 237-24(2)),

237-22.)

There is a temporary suspension for the period

or amounts received under an accident, health,

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

If your business earns interest from buying U.S.

or worker’s compensation policy because of

exemption on the deduction for the sublease of

Treasury obligations or similar instruments, check

personal injuries, death, or sickness (section

real property. The suspension means that the

TIR No. 84-1 for a list of obligations for which in-

237-24(3)) are all exempt. Do not report these

transactions will no longer be exempt from the

terest is exempt. If the kind of bond or obligation

amounts.

GET. This temporary suspension does not apply

that you have is listed as exempt, please identify

to gross income from binding written contracts

If a person receives amounts under fire or ac-

the type of obligation that it is, and refer to “TIR

entered into prior to July 1, 2011, that do not

cident policies to repair or replace damaged

No. 84-1” in your explanation of the exemption.

permit the passing on of increased rates of taxes.

property, the amounts could qualify as money re-

Food Stamps: Amounts received for purchases

ceived because of casual sales (discussed ear-

made with USDA food coupons or vouchers

lier). Amounts paid under business interruption

Page 8

Step-By-Step Instructions For Filling In Your Form G-45 (Periodic Return) Page 8

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