Hawaii Instructions for filing a ONE TIME USE General Excise Tax

Instructions for filing a ONE TIME USE General Excise Tax
g45ot.indb
(REV. 2022)

General Excise/Use One-Time Event

STEP-BY-STEP INSTRUCTIONS FOR FILLING IN YOUR
FORM G-45 (PERIODIC RETURN)
(The circled numbers in the figures correspond to the steps in the instructions.)
A periodic general excise/use tax return (Form G-45), including an amended return, can be filed and payment made
electronically through the State’s Internet portal. For more information, go to tax.hawaii.gov/eservices/.
The Department requires certain general excise taxpayers whose liability exceeds $4,000 for the taxable year, to file returns
electronically. Monthly periodic general excise tax returns for months beginning on or after July 1, 2020 and annual returns
for taxable years beginning on or after January 1, 2020 will be required to be filed electronically. For more information, see
Department of Taxation Announcement No. 2019-16.

Changes You Should Note
 Act 109, Session Laws of Hawaii 2023 – This act eliminates
the general excise tax (GET) exemption for taxes on nursing
facility income imposed by chapter 346E and passed on and
collected by operators of nursing facilities.
 County Surcharge – Effective January 1, 2024, the county
of Maui has adopted a 0.5% county surcharge. Transactions
attributable to the county of Maui and subject to the state GET
rate of 4% have a total rate of 4.5%.
 Schedule GE and Form G-75 required with Forms G-45
and G-49 – The Department will enforce the requirement that
a completed Schedule GE accompany any periodic and annual
general excise tax (GET) return that is filed. If a taxpayer
makes no claim for any GET exemptions, deductions, or other
benefits reported on Schedule GE, then a completed Schedule
GE is not required with the return. If a taxpayer fails to file a

completed Schedule GE with the periodic or annual GET return,
any exemptions, deductions, or other benefits claimed by the
taxpayer will be denied by the Department. The Department
will also enforce the requirement that a completed Form G-75
accompany the GET return which reports income assigned to
more than one district. When income is assigned to more than
one district, the “MULTI” oval in Part V of Form G-45 or G-49
must be shaded. If a taxpayer does business in only one district
in any period, and thus does not shade the “MULTI” oval, then a
completed Form G-75 is not required to be filed with the return.
 Schedule GE – This form which is used to report exemptions has
been revised. If you are claiming exemptions, please complete
and attach Schedule GE (Form G-45/G-49) (Rev. 2023) to your
Form G-45. Failing to use the most current form will result in the
disallowance of your exemptions.

County Surcharge
Transactions subject to the state GET rate of 4% and a county
surcharge have a total rate of 4.5%. The county surcharge does
not apply to activities taxed at the 0.5% rate (e.g., wholesaling) or
the 0.15% rate for insurance commissions. If you do business on
more than one island, you must complete Form G-75 and attach it
to Form G-45. Form G-75 is used to report your taxable income
for each type of business activity (e.g., wholesaling, retailing) in
each taxation district (i.e., Oahu, Maui, Kauai, Hawaii) and to help
you complete Part IV (county surcharge) and Part V (assignment

of taxes by district) on Form G-45. See page 10 of the General
Instructions for Filing the General Excise/Use Tax Returns for more
information on completing Parts IV and V of Form G-45.
For more information on the county surcharge, see Department of
Taxation Announcement Nos. 2005-11, 2006-15, 2006-17, 201814, 2018-15, 2019-04, 2023-05 or click on the link to the County
Surcharge webpage from the Department of Taxation’s homepage
at tax.hawaii.gov.

About this Form
The GET is a privilege tax imposed on the gross income received
by every person engaging in business, including a one-time event
(e.g., fundraiser, exhibition, conference) in the State of Hawaii. Use
Form G-45, Periodic General Excise/Use Tax Return, to report your
gross income, exemptions, and the tax attributable to the one-time
event. Form G-45 is due on or before the 20th day of the calendar
month following the one-time event. For example, if the event is
on January 31st, then Form G-45 is due on February 20th. An
individual not engaged in business (e.g., an employee performing
personal services under the direction and control of an employer)
is not required to file a general excise/use tax return.
Form G-45 is designed for electronic scanning that permits faster
processing with fewer errors. To avoid delays:
1. Print amounts only on those lines that are applicable.
2. Use only a black or dark blue ink pen. Do not use red ink,
pencils, felt tip pens, or erasable pens.
3. Because this form is read by a machine, please print your
numbers inside the boxes like this:

1234567890X
4. Do NOT print outside the boxes.
5. Fill in ovals completely. Do not  or  the ovals.
6. Do NOT enter cents. All numbers that are required to be
rounded to the nearest dollar should NOT be printed over the
zeros used to designate cents.
7. Do NOT use dollar signs, slashes, dashes or parentheses in
the boxes.
8. We recommend that you print a new form from our website
(tax.hawaii.gov) each time you need it. The form’s QR code
is necessary to process the return. Excessive photocopying of
a photocopy will degrade the QR code, and the QR code will
become unreadable.
9. Please use a color printer and print in color.
Note: Form G-49 (Annual Return and Reconciliation) is not required
to be filed.

Rounding to Whole Dollars in Columns a, b, and c
The Department of Taxation (Department) is requiring taxpayers
to round off cents to the nearest whole dollar for all dollar entries
in Columns a, b, and c. To do so, drop amounts under 50 cents

and increase amounts from 50 to 99 cents to the next dollar. For
example: $1.49 becomes $1 and $2.50 becomes $3. If you have
Page 1

to add two or more amounts to figure the amount to enter in the
column, include the cents when adding and round off only the total.

CAUTION: DO NOT enter the cents in Columns a, b, and c. The
system will read all numbers entered as whole dollar amounts.

When Form G-45, Column b is Greater Than Column a
In the event that your exemptions (Column b) for the period exceeds
your gross income (Column a), enter an amount in Column b that is
equal to but not more than Column a. The remainder of the available

exemption would then be reported on the subsequent period’s
Form G-45. You are unable to claim a refund for the amount that
results in a negative tax consequence on the periodic return.

Withholding Requirement
Every person making payments to a loan-out company and claiming
the tax credit pursuant to section 235-17, HRS, must withhold and

Figure 1.

pay to the Department, the GET at the highest rate on the services
performed in the State.

Top of the Return

THE TOP OF THE TAX RETURN (Figure 1)
Step 1 — Enter the appropriate numeric (two digit) month and year
of your filing period (e.g., Month of January 2024 = 01-24).
Step 2 — Write your name here. Individuals, write your last name
first.

Step 3 — If you have received notification of your one-time event
identification number, enter your number in the area provided. If
you have not been assigned a number, leave the area blank.
Step 4 — Enter the last 4 digits of your FEIN or SSN.

Mary enters 03-24 for the numeric month and year for the last month of her filing period.

Figure 2.

How to Fill in the Columns for General Excise Taxes

PART I — GENERAL EXCISE TAXES @ ½ OF 1% (.005) (Figure 2)
Report your business activities for the filing period that are subject to the GET/Use tax at the rate of 0.5% in Part I.
NOTE: Sugar processing and pineapple canning should be
reported under the “Manufacturing” activity.
Step 5 — Enter the gross income from all your business activities
for the filing period in Column a on the applicable business activity
lines. If you did not derive any income from your business activities
during this period, enter zero (0) on the applicable lines.
If a promoter, a contractor, or other person withheld general excise
or use tax and paid it to the Department on your behalf, do not enter
the amount paid or the income on which tax was withheld.
Step 6 — If you have allowable exemptions, enter the total in
Column b on the appropriate business activity line(s). If you do not
have any exemptions, enter zero (0) on the applicable line(s). IF

Figure 3.

Column b is more than Column a, see “When Form G-45, Column
b is Greater Than Column a” above.
If you are claiming exemptions in Column b, complete Schedule
GE (Form G-45/G-49), General Excise/Use Tax Schedule of
Exemptions and Deductions. Please see the schedules of
exemptions and deductions for general excise and use tax
contained in these instructions for more information.
IMPORTANT: Most deductions allowed on net income tax returns
(e.g., operating expenses or cost of goods sold) are NOT deductible
on the GET returns.
Step 7 — For each activity you engage in, subtract Column b from
Column a and enter the result in Column c, Taxable Income. If the
result is zero, enter zero (0).

How to Fill in the Columns for Use Taxes

USE TAXES @ ½ OF 1% (.005) (Figure 3)
Step 8 — Enter the landed value of tangible personal property,
services, or contracting imported into Hawaii in Column a.
Step 9 — If you have allowable exemptions, enter the total in
Column b. If you do not have any exemptions, enter zero (0). IF
Column b is more than Column a, see “When Form G-45, Column
b is Greater Than Column a.”

Page 2

A use tax and GET offset may be claimed for taxes paid to another
state on property, services, or contracting imported into the State
for resale.
CAUTION: Taxes paid for manufacturing, extraction, and the like,
as well as license fees or transfer taxes, MAY NOT be taken as a
credit against Hawaii use taxes due.

The following steps should be taken to claim the offset when
reporting the use tax on the Form G-45.
Offset the use tax:
Step A– Enter the value of the imported property in Column a of
Use Tax on Imports For Resale or Use Tax on Imports
for Consumption, as applicable, and determine the exact
amount of use tax due on that property.
Step B– Compare the use tax due (Step A) with the sales or use
tax paid to another state on that property. Divide the
LESSER of the two amounts by the applicable tax rate,
and enter the result in Column b.
Step C– Subtract Column b from Column a, and enter the result
in Column c.
Offset the general excise tax:
Step D– Enter the gross income from the sale of the imported
property in Column a of the applicable line, and determine
the exact amount of GET due on that property.
Step E– Subtract the use tax due on that property (Step A) from
the sales or use tax paid to another state on that item.
Step F– Compare the GET due (Step D) with the remaining sales
or use tax paid (Step E). Divide the LESSER of the two

amounts by 0.005 or 0.04, as applicable, and enter the
result in Column b.
Step G– Subtract Column b from Column a, and enter the result
in Column c.
EXAMPLE
Taxpayer A purchases widgets in State X on which $125 of sales
tax is paid, and imports the widgets into Hawaii for resale at retail.
The landed value of the widgets is $1,500, and they are sold at
retail for $2,700.
Step A– $1,500 x 0.005 = $7.50
Step B– $7.50 ÷ 0.005 = $1,500
Step C– $1,500 - $1,500 = $0
Step D– $2,700 x 0.04 = $108
Step E– $125 – 7.50 = $117.50
Step F– $108 ÷ 0.04 = $2,700
Step G– $2,700 - $2,700 = $0.00
Step 10 — Subtract Column b from Column a, and enter the result
in Column c. This is the taxable value.

Figure 4. How to Fill in the Columns for Business Activities of Disabled Persons and Totaling the Taxable Income Amounts for General
Excise and Use Taxes @1/2 of 1% (.005)

BUSINESS ACTIVITIES OF DISABLED PERSONS@ ½ OF 1% (.005) (Figure 4)
Step 11 — Certified disabled persons, enter the gross income from
your business activity(ies) in Column a. The qualifying person must
have a completed Form N-172 on file with the Department in order
to report on this line and claim this exemption.
Step 12 — There is an exemption for the first $2,000 of gross
income earned from all activities combined by any certified disabled
person. Enter the total of this exemption plus any other allowable
exemptions in Column b.

Figure 5.

Step 13 — Subtract Column b from Column a, and enter the result
in Column c, Taxable Income. If the result is zero, enter zero (0).
Step 14 — Add the taxable income amounts in Part I, Column
c. Enter the result on line 7 and on page 2, line 24, Column c
(see Figures 4 and 10). Reminder: This amount is rounded to the
nearest dollar.

How to Fill in the Columns for General Excise Taxes

PART II — GENERAL EXCISE and USE TAXES @ 4% (.04) (Figures 5 and 6)
Report your business activities for the filing period that are subject to the GET/Use tax at the rate of 4% in Part II.
For these activities, follow Steps 5 through 10, as applicable.
Step 15 — Add the taxable income amounts in Part II, Column
c. Enter the result on line 17 and on page 2, line 25, Column c

(see Figures 5 and 10). Reminder: This amount is rounded to the
nearest dollar.

In Column a, line 8, Retailing, Mary enters $15,450. Mary enters zero in Column b since she is not claiming any exemptions.
In Column c, Mary subtracts Column b from Column a and enters the result, $15,450.
On Column c, line 17, Mary enters the sum of Column c lines 8 through 16, $15,450.

Figure 6. Totaling the Taxable Income Amounts for General Excise and Use Taxes @4% (.04) and Signing the Return
Page 3

TOP OF PAGE 2 (Figure 7)

Figure 7. Top of Page 2
Step 16 — Please complete the information at the top of the page
as it is entered on page 1 at the top of the return.
At the top of page 2, Mary enters the same information that she entered on page 1 at the top of the return.

Figure 8.

Calculating the General Excise Tax on Insurance Companies @.15% (.0015) and the County Surcharge

PART III — INSURANCE COMMISSIONS @ .15% (.0015) (Figure 8)
Step 17 — Enter your insurance commissions in Column a.
Step 18 — If you have allowable exemptions, enter the total in
Column b. If you do not have any exemptions, enter zero (0).

Step 19 — Subtract Column b from Column a, and enter the result
in Column c, Taxable Income, and on page 2, line 26, Column c
(see Figures 8 and 10). IF Column b is more than Column a, see
“When Form G-45, Column b is Greater Than Column a.”

PART IV — COUNTY SURCHARGE (Figure 8)
Enter the amount from Part II, Column c for each county on lines 19, 20, 21 and 22, Column a.
Step 20 — Enter your taxable income in Column a.
 If you did business in only one district that has a county
surcharge, enter the amount from Form G-45, Part II, line 17,
Column c.
Step 21 — If you have allowable county surcharge exemptions,
enter the total in Column b. If you do not have any exemptions,
enter zero (0).
Allowable county surcharge exemptions/deductions include:
 The additional sublease deduction from Form G-72, line 6;

 The additional deduction for wholesale amusements for Form
G-81, line 6; and
 Gross receipts received under a written contract entered into
before June 30, 2006 for the county of Oahu and June 30, 2018
for the counties of Kauai and Hawaii, and June 30, 2023 for
the county of Maui which does not allow for the pass-on of an
increased rate of tax.
Step 22 — Subtract Column b from Column a, and enter the result
in Column c, Taxable Income (see Figures 8 and 10). IF Column
b is more than Column a, see “When Form G-45, Column b is
Greater Than Column a.”

Mary must complete line 19 since she conducted business in the Oahu district only. On line 19, Column a, Mary enters
$15,450, the amount from line 17, Column c. Mary enters zero in Column b since she is not claiming any county surcharge
exemptions/deductions and enters $15,450 in Column c.

Figure 9.

Completing the Schedule of Assignment of Taxes By District

PART V — SCHEDULE OF ASSIGNMENT OF TAXES BY DISTRICT (Figure 9)
Indicate the taxation district in which you conducted your business activities for the filing period in Part V.
IMPORTANT: ALL taxpayers MUST complete Part V and may be subject to a penalty of 10% of the combined State and county surcharge
taxes for noncompliance.
Step 23 — If you did not have any activity for the period, darken
the oval for your District. If you did business in only ONE District,
darken the oval for that taxation district.
Mary must complete the Schedule of Assignment of Taxes By District. She darkens the oval for Oahu since she did business
in the Oahu district.
Page 4

On line 25, Column c, Mary enters $15,450, which is the amount from Part II, line 17. Mary multiplies $15,450 by the tax rate
of .04 and enters $618.00 in Column e.
Mary adds lines 25 and 27 and enters the result, $695.25, on line 28.

Figure 10.

Completing the Periodic Return (Form G-45)

PART VI — TOTAL PERIODIC RETURN (Figure 10)
Calculate the total amount of taxes due for the filing period in Part VI.
Step 24 — Multiply the taxable income amount on line 24, Column
c by the tax rate of .005 (line 24, Column d) and enter the result,
including the cents, on line 24, Column e. The result is the General
Excise and Use Taxes @½ of 1% (.005) due. If the result is zero,
enter “0.00.”
Step 25 — Multiply the taxable income amount on line 25, Column
c by the tax rate of .04 (line 25, Column d) and enter the result,
including the cents, on line 25, Column e. The result is the General
Excise and Use Taxes @ 4% (.04) due. If the result is zero, enter
“0.00.”
Step 26 — Multiply the taxable income amount on line 26, Column
c by the tax rate of .0015 (line 26, Column d) and enter the result,
including the cents, on line 26, Column e. The result is the GET on
Insurance Commissions @ .15% (.0015) due. If the result is zero,
enter “0.00.”
Step 27 — If you did business only in one district that has a county
surcharge, multiply line 17c by your district’s county surcharge rate
and enter the amount on line 27.
Step 28 — Add the amounts in Column e of lines 24 through 27 and
enter the total on line 28. This is the “TOTAL TAXES DUE.” You
are unable to claim a refund on an original periodic return (Form
G-45).
CAUTION: LINE 28 MUST BE FILLED IN. If you did not have any
activity for the period, enter “0.00” here.

Step 29 — For Amended Return ONLY, see Instructions for Filing
an Amended Form G-45.
Step 30 — Enter the amount from line 28 on line 30, “TOTAL
AMOUNT.”
Step 31 — For Amended Returns ONLY, see Instructions for Filing
an Amended Form G-45.
Step 32 — For Amended Returns ONLY, see Instructions for Filing
an Amended Form G-45.
Step 33 — For Amended Returns ONLY, see Instructions for Filing
an Amended Form G-45.
Step 34 — If you file a tax return after the due date, and if there is
tax due on the return, then you must compute penalty and interest
charges. After computing the amounts, enter the results to the right
of “PENALTY $” and “INTEREST $” and enter the total of the two
amounts on line 34.
If you need help computing the penalty and interest, please call
the Taxpayer Services Branch for assistance at 808-587-4242
or toll-free 1-800-222-3229; or leave these lines blank, and the
Department will compute the charges for you and send you a bill.
Step 35 — Add the amounts on lines 30 and 34, and enter the
“TOTAL AMOUNT DUE AND PAYABLE” on line 35.
Step 36 — NOTE: If you are NOT submitting a check with your
return, enter “0.00” on line 36.

Page 5

Enter the “AMOUNT OF YOUR PAYMENT,” including any penalty
and interest, on line 36. Mail your check or money order for this
amount payable to “Hawaii State Tax Collector” in U.S. dollars
drawn on any U.S. bank to the P.O. Box below. Write the filing
period, your Hawaii Tax I.D. No., and your daytime phone number
on your check or money order.
Send your check or money order and Form G-45 with the required
forms and attachments (Schedule GE and Form G-75 if applicable)
to:
Hawaii Department of Taxation
P.O. Box 1425
Honolulu, HI 96806-1425
DO NOT SEND CASH. Form G-45 can also be filed and payment
made electronically at hitax.hawaii.gov.
NOTE: Effective beginning on or after July 1, 2020, the Department
requires certain taxpayers whose general excise tax liability
exceeds $4,000 annually, to file monthly periodic general excise
tax returns, Form G-45, electronically at hitax.hawaii.gov unless
a waiver is obtained by filing Form L-110. In addition, for taxable
years beginning on or after January 1, 2020, annual general excise
tax returns, Form G-49, will be required to be filed electronically

also. IMPORTANT! A penalty of 2% of the total tax will be assessed
if a taxpayer who is required to file electronically fails to do so. Act
66, Session Laws of Hawaii 2018, amended section 231-8.5, HRS,
to enable the Department to require certain taxpayers to file returns
electronically. For more information, see Department of Taxation
Announcement No. 2019-16.
Step 37 — If you are claiming any exemptions for the period,
complete Schedule GE (Form G-45/G-49), General Excise/Use
Tax Schedule of Exemptions and Deductions, enter the “GRAND
TOTAL OF EXEMPTIONS/DEDUCTIONS CLAIMED” from
Schedule GE (Form G-45/G-49) on line 37, and attach Schedule
GE (Form G-45/G-49) to Form G-45.
Step 38 — Sign your name and write your title, date and daytime
phone number in the spaces provided on page 1 of the Form G-45
(see Figure 6).
IMPORTANT: Please fill in each column of your business
activity(ies) with a dollar amount or zero (0) or processing errors
will result. Also, write the filing period (e.g., “Jan 2024”), your
Hawaii Tax I.D. No., and your daytime phone number on your check
or money order so it will be properly credited if it is accidentally
separated from your tax return.

INSTRUCTIONS FOR FILING AN AMENDED FORM G-45
If you file your Form G-45 and later become aware of any changes
you must make to reported income and/or exemptions, you may file
an amended return on Form G-45 to change the Form G-45 you
already filed. Darken the oval at the top of page 1 of Form G-45 to
designate that this is an amended return. The steps below refer to
the steps in Figures 1 through 10.
Steps 1 through 28 — Enter the correct amounts of values, gross
proceeds or gross income, exemptions, taxable income, and taxes
due which should have been reported on the original Form G-45.
(NOTE: Entries which were correctly reported on the original Form
G-45 also must be entered on the appropriate line(s). Failure to
do so will result in a change from the correct amount to -0-.)
Step 29 — As of the date the amended Form G-45 is filed, enter
on line 29 the amounts of any penalty and/or interest assessed for
the period. Penalty and interest are generally assessed because
the original return was filed after the filing deadline or because the
taxes due were not paid in full by the filing deadline.
Step 31 — Enter on line 31 the total amount of taxes, additional
assessments, and penalty and/or interest paid less any refunds
received for the period. Include payments made with the original
periodic return as well as any supplemental payments made after
the original periodic return was filed. REMINDER: Payments are
applied first to recover costs incurred by the Department, then to
any interest due, then to penalties, and finally, to taxes.
Step 32 — If line 30 is LESS THAN line 31, subtract line 30 from line
31 and enter the result on line 32, “CREDIT TO BE REFUNDED.”
Step 33 — If line 30 is MORE THAN line 31, subtract line 31 from
line 30 and enter the result on line 33, “ADDITIONAL TAXES DUE.”
Step 34 — If the amended Form G-45 is being filed after the due
date of the original Form G-45, and if there is an amount entered on
line 33, enter on line 34 the amount of any penalty and/or interest
now due. On a timely filed original Form G-45, a penalty of 20%
of the tax due will be assessed if any tax remains unpaid after 60
days from the prescribed due date of the original Form G-45. This
penalty is applicable to amended Form G-45s for timely filed original
Form G-45s. Interest at the rate of 2/3 of 1% per month or part of a
month shall be assessed on unpaid taxes and penalties assessed
beginning with the first calendar day after the date prescribed for
payment, whether or not that first calendar day falls on Saturday,
Sunday, or legal holiday.
Step 35 — Add lines 33 and 34 and enter the total on line 35,
“TOTAL AMOUNT DUE AND PAYABLE.”
Step 36 — Enter on line 36 the amount of any payment made
with the amended Form G-45. If the amended Form G-45 is filed
Page 6

after the due date of the original Form G-45, include any additional
penalty and interest in your payment. Mail your check or money
order for this amount payable to “Hawaii State Tax Collector” in
U.S. dollars drawn on any U.S. bank to the P.O. Box below. Write
the filing period, your Hawaii Tax I.D. No., and your daytime phone
number on your check or money order.
Send your check or money order and your amended Form
G-45 with the required forms and attachments (Schedule GE
and Form G-75 if applicable) to:
Hawaii Department of Taxation
P.O. Box 1425
Honolulu, HI 96806-1425
DO NOT SEND CASH. An amended Form G-45 can also be filed
and payment made electronically at hitax.hawaii.gov.
NOTE: Effective beginning on or after July 1, 2020, the Department
requires certain taxpayers whose general excise tax liability
exceeds $4,000 annually, to file monthly periodic general excise
tax returns, Form G-45, electronically at hitax.hawaii.gov unless
a waiver is obtained by filing Form L-110. In addition, for taxable
years beginning on or after January 1, 2020, annual general excise
tax returns, Form G-49, will be required to be filed electronically
also. IMPORTANT! A penalty of 2% of the total tax will be assessed
if a taxpayer who is required to file electronically fails to do so. Act
66, Session Laws of Hawaii 2018, amended section 231-8.5, HRS,
to enable the Department to require certain taxpayers to file returns
electronically. For more information, see Department of Taxation
Announcement No. 2019-16.
Step 37 — If any exemptions are claimed, complete and attach
Schedule GE to the amended Form G-45. The amount and type of
exemptions claimed must be completed even if reported correctly
on the original Form G-45 filed. Enter the total of all exemptions
reported on Schedule GE on line 37.
Step 38 — Sign your name and write your title, date and daytime
phone number in the spaces provided on page 1 of the amended
Form G-45 (see Figure 6).
IMPORTANT: Please fill in each column of your business
activity(ies) with a dollar amount or zero (0) or processing errors will
result. Also, write the filing period (e.g., “Jan 2024”), your Hawaii
Tax I.D. No., and your daytime phone number on your check or
money order, if applicable, so that it may be properly credited if it is
accidentally separated from the tax return.

SCHEDULE OF GENERAL EXCISE TAX EXEMPTIONS AND DEDUCTIONS
(NOTE: ALL SECTION REFERENCES ARE TO THE HAWAII REVISED STATUTES)
Unless the following instructions tell you not to
report the exempt amounts, you must report on
Schedule GE (Form G-45/G-49) the exemptions
you are claiming on Forms G-45 and G-49. For
circumstances under which an exemption is permitted or allowed, refer to the following sections:
Affordable Housing: Gross income received
by a qualified person or firm for the planning,
design, financing, construction, sale, rental, or
lease of a housing project certified under section
46-15.1 or 201H-36 by a qualified state agency
or a county is exempt. Report these amounts
with ED Code 100 on the Schedule GE (Form
G-45/G-49). For more information, see Form
G-37 or contact the Hawaii Housing Finance
and Development Corporation at 808-587-0597.
(Sections 46-15.1, 201H-36, and 237-29.)
Air Pollution Control Facility: Gross proceeds
from and the tangible personal property furnished
in conjunction with the construction, reconstruction, erection, operation, use, or maintenance of
an air pollution control facility (APCF) are exempt.
The APCF must be certified by the Department
of Health (DOH) at least once every five years
and file this certification with the Department of
Taxation (DOTAX). An exemption may not be
claimed if the APCF does not have a valid certificate from DOH on file with DOTAX. Report these
amounts with ED Code 101 on the Schedule GE
(Form G-45/G-49). (Section 237-27.5.)
Aircraft Leasing: Amounts received as rent
for the rental or leasing of aircraft or aircraft engines that is used by the lessee for interstate air
transportation of passengers and goods are exempt. Report these amounts with ED Code 102
on the Schedule GE (Form G-45/G-49). (Section
237-24.3(11).)
Aircraft Service and Maintenance Facility:
Amounts received from the servicing and maintenance of certain types of aircraft or from the
construction of a qualified aircraft service and
maintenance facility in the State are exempt.
Report these amounts with ED Code 103 on
the Schedule GE (Form G-45/G-49). (Section
237-24.9.)
Alimony: Alimony and other similar payments
and settlements are exempt. Do not report these
amounts. (Section 237-24(7).)
Bad Debts: For accrual basis taxpayers, accounts that are actually charged off as worthless
for income tax purposes may be deducted in
Column b. Report these amounts with ED Code
104 on the Schedule GE (Form G-45/G-49). No
deduction may be taken for a bad debt reserve.
If accounts written off are later collected, the collection is included in Column a for the period in
which it was received. (Section 237-3(b).)
Beverage Container Deposit:
“Bottle Bill”
Amounts received as a beverage container deposit collected under chapter 342G, part VIII,
HRS are exempt. Do not report these amounts.
(Section 237-24.75(1).) For more information,
see Announcement No. 2002-20.
Casual Sales: Proceeds from a casual sale are
not taxed. A casual sale means an occasional,
isolated, irregular, infrequent, or incidental sale
or transaction involving tangible personal property that is not ordinarily sold in the usual course of
a trade or business. Sales of inventory, or sales
that are carried out on a systematic basis, such
as when a rental car company sells its rental cars
in order to make way for new ones to rent, do not

qualify as casual sales. For details, see section
18-237-1, HAR. Do not report these amounts.
(Section 237-2.)

merchandise sales were reported. Report these
amounts with ED Code 112 on the Schedule GE
(Form G-45/G-49). (Section 237-3(b).)

Certain Convention, Conference, and Trade
Show Fees: All of the value or gross income
derived by a fraternal benefit, religious, charitable, scientific, educational, or other nonprofit
organization under section 501(c) of the Internal
Revenue Code from fees for convention, conference, or trade show exhibit or display spaces is
exempt. Report these amounts with ED Code
105 on the Schedule GE (Form G-45/G-49).
(Section 237-16.8.)

Dividends and Distributions: Dividends and
other distributions of income or profit from corporations, partnerships, and trusts are not taxable.
Do not report these amounts. (Section 237-3(b).)
The exemption does not apply if the distribution
is a payment due to transaction of business with
the shareholder, partner, member, or beneficiary.

Common Paymaster Exception: If employees
work for more than one related corporation, one
of the corporations may pay the employees on
behalf of all employers. If so, the intercompany
transfers of funds to the common paymaster are
exempt. Report these amounts with ED Code
106 on the Schedule GE (Form G-45/G-49).
(Section 237-23.5(b).) See also the exemptions
for hotel operators, hotel suboperators, and orchard operators on the following page.
Contracting Activity in an Enterprise Zone:
Gross proceeds received by a contractor for
construction within an enterprise zone performed for a qualified business within an enterprise zone are exempt. Report these amounts
with ED Code 107 on the Schedule GE (Form
G-45/G-49). The designation of enterprise zones
and the certification of qualified businesses are
administered by the Department of Business,
Economic Development, and Tourism (DBEDT).
(Section 209E-11.)
Damages for Personal Injuries and Property
Damage: Compensatory damages for personal
injuries or defamation, or compensatory damages for damage to property, are exempt. Do
not report these amounts. (Section 237-24(5).)
Punitive damages, and any damages for breach
of contract, are taxable if the damages are connected to business in which you are or were engaged in.
Diplomats and Consular Officials, Sales to:
Amounts received from foreign diplomats and
consular officials who are holding cards issued
by the U.S. Department of State granting them
an exemption from state taxes are exempt.
Report these amounts with ED Code 110 on the
Schedule GE (Form G-45/G-49). (Section 23724.3(10).) The tax exemption, however, is not
applicable to taxes imposed on telecommunication services, other utilities, or gasoline purchases. See Department of Taxation Announcement
Nos. 2000-07, 2011-25, and 2013-03, Tax Facts
2016-1 for more information.
Disability Provisions: The first $2,000 of gross
income earned by any blind, deaf, or totally disabled person is exempt. Report these amounts
with ED Code 111 on the Schedule GE (Form
G-45/G-49). (Section 237-24(13).) The qualifying person must have a completed Form N-172
on file with the Department in order to claim
this exemption. For more information, see TIR
Nos. 89-3, 2022-01 and Department of Taxation
Announcement 2002-6.
Discounts and Returned Merchandise: Cash
or other discounts on the price of articles sold are
considered price adjustments and should be subtracted in figuring the amount to report in Column
a. Cash or store credit that is given for returned
merchandise is deductible and should be entered in Column b of the same line on which the

Drugs and Prosthetic Devices: Sales to individuals by a hospital, infirmary, medical clinic, health
care facility, pharmacy, or practitioner licensed to
administer drugs or prosthetic devices are exempt.
Report these amounts with ED Code 113 on the
Schedule GE (Form G-45/G-49). (Section 23724.3(6).) Prosthetic devices do not include such
items as glasses, hearing aids, or dentures. For
more information, see TIR No. 86-4.
Employee Benefit Plans: Amounts received
by an employee benefit plan such as contributions, dividends, and interest are exempt and do
not need to be reported. Amounts received by
a nonprofit organization or office such as payments for costs and expenses incurred for the
administration of an employee benefit plan are
also exempt; however, these amounts must be
reported and explained. Report these amounts
with ED Code 114 on the Schedule GE (Form
G-45/G-49).(Section 237-24.3(4).)
Enterprise Zones: There are tax incentives for
businesses in properly designated enterprise
zones (EZ). Designation of zones and certification of businesses in those zones are administered by DBEDT. Report these amounts with ED
Code 115 on the Schedule GE (Form G-45/G-49).
(Section 209E-11.) Caution: Not all sales which
count towards an EZ company’s qualification for
the tax benefits as set by DBEDT are exempt
from the GET since some types of sales can be
used in determining whether an EZ company has
met the annual requirements for certification, but
those same sales may not necessarily be exempt
from the GET. For example, retail sales of agricultural goods produced or processed in the EZ
will count towards an EZ company’s annual certification, but the sales are not exempt from the
GET, unless they are sales of genetically modified agricultural products.
Exported Intangibles: The value or gross
proceeds received by a seller from the sale of
intangible(s) for consumption or use outside of
the State are exempt, provided the customer
furnishes Form G-61 certifying as such to the
seller. Report these amounts with ED Code 156
on the Schedule GE (Form G-45/G-49). (Section
237-29.57.)
Exported Services: The value or gross proceeds received by a contractor, service provider, or seller from the sale of contracting or
services to a customer for resale, consumption,
or use outside of the State are exempt, provided the customer furnishes Form G-61 certifying as such to the contractor, service provider,
or seller. Report these amounts with ED Code
116 on the Schedule GE (Form G-45/G-49).
(Section 237-29.53.) For more information, see
Announcement No. 2018-05.
Exported Tangible Personal Property:
Out of State Sales.

See

Federal Cost-Plus Contractors: If you are a
federal cost-plus contractor, you may elect to
Page 7

deduct any amounts that you were reimbursed
under the contract for materials, plant, or equipment. Report these amounts with ED Code 117
on the Schedule GE (Form G-45/G-49). In addition, you must certify that you are taxable with respect to the gross proceeds of the sale, and that
you elect to have the tax on the gross income
computed the same as upon a sale to the state
government. Please attach the certification on a
separate sheet. (Section 237-13(3)(C).)
Federally Preempted Amounts: Gross income
is not taxed if the Constitution and laws of the
United States prohibit the State of Hawaii from
taxing it. If you are claiming this exemption, you
must enter the amount claimed to be exempt in
Column b, and report with ED Code 118 on the
Schedule GE (Form G-45/G-49). If the amount
claimed is exempt due to federal preemption,
provide an explanation of the exemption and
the federal statute (i.e., title and section of the
United States Code) under which the exemption
is claimed in Part II on Schedule GE. (Section
237-22.)
If your business earns interest from buying U.S.
Treasury obligations or similar instruments, check
TIR No. 84-1 for a list of obligations for which interest is exempt. If the kind of bond or obligation
that you have is listed as exempt, please identify
the type of obligation that it is, and refer to “TIR
No. 84-1” in your explanation of the exemption.
Food Stamps: Amounts received for purchases made with USDA food coupons or vouchers
under the federal food stamp program, or the
Special Supplemental Food Program for Women,
Infants and Children, are exempt. Report these
amounts with ED Code 119 on the Schedule GE
(Form G-45/G-49). (Section 237-24.3(5).)
Foreign Trade Zone Sales: Sales of privileged
foreign merchandise, nonprivileged foreign
merchandise, domestic merchandise, or zonerestricted merchandise which are admitted into
a foreign-trade zone and made directly to any
common carrier in interstate or foreign commerce for consumption out-of-state are exempt,
provided that the sale takes place entirely within
the zone. See TIR No. 2021-07 for more information. Report these amounts with ED Code
120 on the Schedule GE (Form G-45/G-49).
(Section 212-8.)
Foster Parents: Foster parents are not taxable
on amounts they receive from the State or eleemosynary child-placing organizations for their
care of children in foster homes. Do not report
these amounts. (Section 237-24(15).)
Gifts and Bequests: Any property acquired by
gift, bequest, or devise is exempt. Do not report
these amounts. (Section 237-24(4).)
Green
Infrastructure
Fee,
Green
Infrastructure
Charge
and
Green
Infrastructure Special Fund: Amounts received by an electric utility for the green infrastructure fee and the green infrastructure charge
is exempt. The amounts deposited into the green
infrastructure special fund is also exempt. Do not
report these amounts. (Sections 196-65(c), 269168(a) and 269-172(b).)
Hawaii Convention Center Operator: Amounts
received after June 13, 2007, by the operator of
the Hawaii convention center for reimbursement
of costs or advances made pursuant to a contract with the Hawaii tourism authority under section 201B-7 are exempt. Report these amounts
with ED Code 121 on the Schedule GE (Form
G-45/G-49). (Section 237-24.75(2).)
Hotel Operator: Amounts received by the operator of a hotel from the owner of the hotel or
from a timeshare association, and disbursed by
Page 8

the hotel operator for employee wages, salaries,
payroll taxes, insurance premiums and benefits (including retirement, vacation, sick pay,
and health benefits) are exempt. Report these
amounts with ED Code 122 on the Schedule GE
(Form G-45/G-49). (Section 237-24.7(1).)
Hotel Suboperator: Amounts received by the
suboperator of a hotel from the owner of the
hotel, from a timeshare association, or from the
operator of the hotel, and disbursed by the hotel
suboperator for employee wages, salaries, payroll taxes, insurance premiums and benefits (including retirement, vacation, sick pay, and health
benefits) are exempt. Report these amounts
with ED Code 122 on the Schedule GE (Form
G-45/G-49). (Section 237-24.7(1).)
Insurance Proceeds: Amounts received under
life insurance contracts because of the death
of the insured (section 237-24(1)), amounts received under life insurance, endowment, or annuity contracts paid either during the term of
the contract or at maturity (section 237-24(2)),
or amounts received under an accident, health,
or worker’s compensation policy because of
personal injuries, death, or sickness (section
237-24(3)) are all exempt. Do not report these
amounts.
If a person receives amounts under fire or accident policies to repair or replace damaged
property, the amounts could qualify as money
received because of casual sales (discussed
earlier). Amounts paid under business interruption insurance contracts to replace lost income,
or amounts paid under any insurance contracts
to repair or replace inventory property, including
crop losses, are considered taxable. Report all
of these amounts on the “All Others” line in Part
II of Forms G-45 and G-49, even if the insurance
proceeds replace inventory property that otherwise would have been sold at wholesale. For
more information, see TIR No. 92-7. If the damage or loss of inventory property took place in an
area declared a natural disaster area, an exemption may be claimed under “Insurance Proceeds
Received Because of a Natural Disaster.”
Insurance Proceeds Received Because of a
Natural Disaster: If you receive amounts under
property and casualty insurance policies for damage or loss of inventory used in a trade or business located within an area declared a natural disaster area by the Governor, this exemption applies. Report these amounts with ED Code 123
on the Schedule GE (Form G-45/G-49). (Section
237-24.7(5).)
Intercompany Charges: Charges for legal, accounting, managerial, and administrative services (including related overhead costs) furnished
by one related entity to another, or interest on
loans or advances to related entities, are not
taxable. The amount received, charged, or attributable to services using computer software
and hardware, information technology services,
and database management that is furnished
by one related entity to another related entity
is exempt. Related entities are generally those
related through 80% common ownership and at
least 80% of the total voting power. Report these
amounts with ED Code 124 on the Schedule GE
(Form G-45/G-49). (Section 237-23.5(a).)
Labor Organizations: A labor organization that
is exempt from federal income tax under section
501(c)(5) of the Internal Revenue Code is not taxable on rents for real property leased to: (A) another labor organization, or (B) a trust providing
membership service programs such as a pension
plan, a common fund for medical or hospital care,
or apprenticeship and training. Report these
amounts with ED Code 125 on the Schedule GE
(Form G-45/G-49). (Section 237-24.3(9).)

Leases and Subleases of Real Property: A
deduction is allowed to a taxpayer (sublessor)
who leases real property from a lessor under a
written lease, and subsequently subleases that
same real property to a sublessee under a written lease. The deduction is computed by multiplying the gross proceeds paid by the taxpayer
to the lessor by 0.875. The taxpayer calculates
the sublease deduction using Form G-72. In addition, the lessor’s name and lessor’s Hawaii Tax
I.D. No. must be provided in Part IV on Schedule
GE. Report these amounts with ED Code 126
on the Schedule GE (Form G-45/G-49). (Section
237-16.5.)
Maintenance Fees: Amounts received by the
manager, submanager, or board of directors of:
(1) an association of a condominium property
regime established under HRS chapter 514B or
any predecessor thereto (section 237-24.3(2));
(2) a nonprofit homeowners or community association incorporated in accordance with 414D
(section 237-24.3(2)); or (3) a qualifying cooperative housing corporation (section 237-24(16));
in reimbursement of sums paid for common expenses such as maintenance fees are exempt.
Report these amounts with ED Code 127 on the
Schedule GE (Form G-45/G-49). If you are not
a manager, submanager, or a board of directors
to an entity of (1), (2), or (3) above, you do not
qualify for this exemption.
Mass Transit: Income of the operator of a mass
transit system (of motorized buses) is exempt,
if a political subdivision owns the property and
the facilities of the county transportation system (including buses, real estate, parking garages, fuel pumps, etc.). Report these amounts
with ED Code 128 on the Schedule GE (Form
G-45/G-49). (Section 237-24.7(2).)
Merchants’ Association Dues: Amounts received from the membership of an unincorporated merchants’ association as dues for
advertising or promotion are exempt, as long
as the advertising and promotion are for the
benefit of the membership as a whole and not
for an individual member or subgroup of members. Report these amounts with ED Code
129 on the Schedule GE (Form G-45/G-49).
(Section 237-24.3(8).)
Non-profit Organizations: Amounts received
by certain non-profit fraternal, religious, charitable, scientific, educational, community or social welfare groups and hospitals, infirmaries
and sanitaria organizations may be exempt.
Report these amounts with ED Code 130 on the
Schedule GE (Form G-45/G-49). However, ALL
fundraising activities are taxable and must be reported. (Section 237-23.) See TIR Nos. 2010-05
and 2011-04 for licensing and reporting requirements, and TIR Nos. 89-6, 89-13, 91-2, and 91-4,
and Tax Facts No. 98-3 for more information.
Orchard Operator: Amounts received by the
operator of orchard properties from the owner
of the orchard property specifically to cover
the costs of employee wages, salaries, payroll
taxes, insurance premiums and benefits (including retirement, vacation, sick pay, and health
benefits) are exempt. Report these amounts
with ED Code 131 on the Schedule GE (Form
G-45/G-49). (Section 237-24.7(4).)
Out of State Sales: The value or gross proceeds
received by a manufacturer, producer, or seller of
tangible personal property shipped to a point outside of the State where it is resold or otherwise
consumed or used outside the State are exempt,
provided the purchaser furnishes Form G-61 certifying as such to the manufacturer, producer, or
seller. Report these amounts with ED Code 132
on the Schedule GE (Form G-45/G-49). (Section

237-29.5(1).) For more information, see TIR No.
98-5.
Out of State Services: See Exported Services.
Patient-Centered Community Care: Amounts
received by a Patient-Centered Community Care
(PCCC) contractor used to pay third party health
care providers pursuant to a contract with the
United States are exempt. According to the U.S.
Department of Veterans Affairs website (https://
va.gov/COMMUNITYCARE/programs/veterans/
PCCC/index.asp), the contractor for Hawaii is
Tri-West Healthcare Alliance Corp. This exemption does not apply to third party health care providers receiving payments under this program.
The payments received by third party health
care providers are subject to tax. Report these
amounts with ED Code 134 on the Schedule GE
(Form G-45/G-49). (Section 237-24(17).)
Petroleum Refining: Petroleum products refined
in Hawaii that will be further refined by another
taxpayer are exempt. Report these amounts
with ED Code 135 on the Schedule GE (Form
G-45/G-49). (Section 237-27.)
Potable Water: Amounts received by non-profit
organizations exempt under section 501(c)(12)
of the Internal Revenue Code for providing potable water to residential communities that have
no access to public utility water services are exempt. Report these amounts with ED Code 136
on the Schedule GE (Form G-45/G-49). (Section
237-23(a)(7).)
Professional Employer Organizations:
Amounts received after June 30, 2007, by a
professional employer organization (PEO) that
is registered with the Department of Labor and
Industrial Relations pursuant to Chapter 373L,
HRS, from a client company equal to amounts
that are disbursed by the PEO for employee wages, salaries, payroll taxes, insurance premiums,
and benefits, including retirement, vacation, sick
leave, health benefits, and similar employment
benefits with respect to assigned employees at a
client company are exempt; provided that this exemption shall not apply to a PEO upon failure of
the PEO to collect, account for, and pay over any
income tax withholding for assigned employees
or any federal or state taxes for which the PEO is
responsible. The PEO must comply with the registration requirements under Chapter 373L, HRS,
in order to claim the exemption. Report these
amounts with ED Code 137 on the Schedule GE
(Form G-45/G-49). (Section 237-24.75(3).)
Reimbursements of Payroll Costs: Amounts
received by a management company from related entities engaged in the business of selling
interstate or foreign telecommunication services
as reimbursements of payroll costs incurred in
managing or operating the related entities’ employees are exempt. Report these amounts
with ED Code 140 on the Schedule GE (Form
G-45/G-49). (Section 237-24.7(8).) Related entities are generally those related through 80%
common ownership and at least 80% of the total
voting power.
Sale of Land in Fee Simple (improved or unimproved): Gross proceeds from the sale of land in
fee simple are generally exempt. (Section 2373(b).) If leasehold land is sold, especially by the
lessor, part of the proceeds from the sale may be
considered rent and would need to be reported
on the “Other Rentals” line in Part II of Forms
G-45 and G-49. For details, see General Excise
Tax Memorandum No. 3 and General Excise Tax
Memorandum No. 3A. Land in fee simple does
not include furniture, fixtures, and equipment. If
these items are being sold, see “Casual Sales”
above.

Contractors, developers, and dealers in real estate must report the gross sale proceeds from
their projects in Column a, and include in Column
b (and report with ED Code 139 on the Schedule
GE (Form G-45/G-49)) the amount attributable to
the sale of land in fee simple.
Sales of Goods to the Federal Government
and Credit Unions: Sales of tangible property
to the federal government and state and federal
credit unions are exempt. Report these amounts
with ED Code 141 on the Schedule GE (Form
G-45/G-49). (Section 237-25(a).) This exemption does not apply to federal cost-plus contractors or service providers (even if the service
provider separately bills for the item of tangible
personal property). For more information, see
TIR Nos. 2001-3 and 2005-1. NOTE: Services
provided to the federal government and credit
unions are taxable.
Sales Tax Offset: A use tax and GET offset may
be claimed for taxes paid to another state on
property, services or contracting imported into the
State for resale. Taxes paid for manufacturing,
extraction, and the like, as well as license fees
or transfer taxes, may not be taken as a credit
against Hawaii use taxes due. Report these
amounts with ED Code 154 on the Schedule GE
(Form G-45/G-49). (Section 237-22(b).)
Scientific Contracts: Gross proceeds from
certain scientific contracts with the federal government are exempt. Report these amounts
with ED Code 142 on the Schedule GE (Form
G-45/G-49). (Section 237-26.) For more information, see TIR No. 35-71.
Senior Citizens’ Fair: Proceeds of an annual
senior citizens’ fair held by a county commission
on aging or appropriate county agencies on aging are exempt. Do not report these amounts.
(Section 349-10.)
Services Related to Ships and Aircraft:
Amounts received from the loading or unloading of ships or aircraft; tugboat services including pilotage fees and towage of ships, barges,
or vessels in and out of harbors or from one
pier to another; and the transportation of pilots
or governmental officials to ships, barges or
vessels offshore; rigging gear; checking freight
and similar services; standby charges; and use
of moorings and running mooring lines are exempt. Report these amounts with ED Code 143
on the Schedule GE (Form G-45/G-49). (Section
237-24.3(3).)
Shipbuilding and Ship Repairs: Gross proceeds arising from shipbuilding and ship repairs
rendered to surface vessels federally owned or
engaged in interstate or international trade are
exempt. Report these amounts with ED Code
144 on the Schedule GE (Form G-45/G-49).
(Section 237-28.1.)
Shipping and Handling of Agricultural
Commodities: Amounts received for loading,
unloading and shipping of agricultural commodities between islands in the State from a producer
or produce dealer are exempt. Report these
amounts with ED Code 145 on the Schedule GE
(Form G-45/G-49). (Section 237-24.3(1).)
Small Business Innovation Research Grants:
Amounts received as grants awarded by the
Hawaii Technology Development Corporation
under section 206M-15, that supplement federal
small business innovation research phase I, II, or
III awards or contracts are exempt. Report these
amounts with ED Code 146 on the Schedule GE
(Form G-45/G-49). (Section 237-24.7(9).)
Stock Exchange Transactions:
Certain
amounts received by a domestic or foreign
stock exchange, and certain amounts received

by exchange members by reason of executing a securities or product transaction on an
exchange, are exempt. Report these amounts
with ED Code 147 on the Schedule GE (Form
G-45/G-49). (Section 237-24.5.)
Stocks, Bonds, and Commodity Futures:
Gross proceeds from the sale of securities, commodity futures, and bonds are exempt and do
not have to be reported. (Section 237-3(b).) If
you are selling bonds with accrued but unpaid
interest, the interest is considered income that
is received when the bond is sold. The interest
does not qualify for this exclusion and may need
to be reported on the “Interest” line in Part II of
Forms G-45 and G-49. For example, if you purchased an out-of-state municipal bond at a discounted price and sell it for an appreciated price,
the difference is considered accrued, but unpaid,
interest and that portion would be taxable and
reported on the “Interest” line in Part II of Forms
G-45 and G-49. NOTE: Federal bonds’ accrued
interest are exempt. See “Federally Preempted
Amounts” discussed earlier.
Subcontract Deduction: A prime contractor (or
a developer) may be eligible for a deduction in
the amount of payments made to a subcontractor or a specialty contractor. The subcontractor’s
name, the subcontractor’s Hawaii Tax I.D. No.,
and the amount of deduction must be provided in
Part III on Schedule GE. Report these amounts
with ED Code 148 on the Schedule GE (Form
G-45/G-49). (Section 237-13(3)(B).) For more
information, see Tax Facts 99-3.
Sugar Cane Payments to Independent
Producers: Certain payments to independent
sugar cane producers are exempt. Report these
amounts with ED Code 149 on the Schedule GE
(Form G-45/G-49). (Section 237-24(14).)
Taxes Passed On: Amounts received to pay
the following taxes are exempt. Each amount
should be reported and explained. Report these
amounts with ED Code 150 on the Schedule GE
(Form G-45/G-49).
Fuel taxes collected by distributors. (Section
237-24(8).)
Hawaii liquor taxes collected by dealers. (Section
237-24(9).)
Hawaii cigarette and tobacco taxes paid by
wholesalers. (Section 237-24(10).)
Federal excise taxes imposed on articles sold at
retail and collected from purchasers. (Section
237-24(11).)
Federal taxes imposed on sugar manufactured in
Hawaii. (Section 237-24(12).)
Transient accommodations taxes visibly and
separately passed on. (Section 237-24.3(7).)
Rental motor vehicle, tour vehicle & car-sharing vehicle surcharge taxes visibly passed on.
(Section 237-24.7(3).)
Trade-Ins: For trade-ins, a merchant reduces
the price of the new article by the amount of the
trade-in allowance. The trade-in allowance is
considered a price adjustment and is subtracted
from the new article’s sales price and the net
amount is reported in Column a. Any later sale
of the traded-in article is reportable at the time of
that sale. (Section 237-3(b).)
Wages: Amounts received as salaries or wages for services rendered by an employee to an
employer are exempt. If your employer is withholding payroll taxes on these wages, you do
not have to report them. If you are being paid
as an independent contractor, or if payroll taxes are not being withheld, these amounts are
Page 9

taxable and must be reported and explained.
(Section 237-24(6).)
Wholesale Amusements: A deduction is allowed for qualified sales of amusements to a licensed seller engaging in a business or calling in
the context of an amusement-to-service, amusement-to-tpp, or amusement-to-amusement transaction that meets the requirements in section
237-4(a)(13), HRS. The deduction is computed

by multiplying the gross income received from
qualified sales of amusements at wholesale by
0.875. The taxpayer calculates the deduction using Form G-81. Report these amounts using ED
code 152 on the Schedule GE (Form G-45/G-49).
(Section 237-4(a)(13).)
Wholesale Transactions: Amounts received
from the sales of tangible personal property imported into the State by a licensed taxpayer to

another licensed taxpayer for subsequent resale at wholesale are exempt, provided the customer furnishes Form G-17 certifying as such to
the seller. Report these amounts with ED Code
153 on the Schedule GE (Form G-45/G-49). For
more information, see TIR No. 98-8. (Section
237-29.55.)

DIVISION OF GROSS INCOME AMONG TAXPAYERS
In general, as mentioned above, the GET is imposed on gross income and no deductions are
allowed for costs of producing that income. In
the following special situations, however, the law
recognizes the division of gross receipts among
the taxpayers responsible for those receipts.
Taxpayers in these situations report their respective shares of the gross income received on the
Schedule GE (Form G-45/G-49).
Coin Operated Devices: Gross receipts are
divided between the owner (or operator) of the
device and the owner (or operator) of the premises on which the machine is located. (Section
237-18(a).)
Insurance Agents and Realtors: Gross commissions are divided among licensed non-employee insurance agents, or among licensed

non-employee realtors. For brokers and agents,
each person pays tax on the person’s portion
of the commissions and no more. (Section
237-18(e).) Generally, commission sellers pay
tax on commissions earned, and the principal
pays tax on gross sales, not the amount net of
commissions.
Motor Carriers: Where the transportation of
passengers or property is furnished through arrangements between motor carriers, the gross
income received for the transportation services
is divided between the motor carriers. (Section
237-18(h).)
Producers and Promoters: When a person
furnishing or producing an event or spectacle
(such as a film distributor) and a promoter (such
as a theater owner) stage an event, the promoter

pays the tax and withholds the producer’s share
of the tax from the portion of the income payable
to the producer. If the producer is a tax exempt
entity, such as a properly registered nonprofit
organization, then the promoter is not taxed on
the producer’s share of the income and the promoter does not have to withhold tax. (Section
237-18(b).)
Tour Packagers: Gross revenues can be divided between a tour packager or travel agent and
a provider of tourism related services. (Section
237-18(f).) In addition, gross revenues can be divided between a tour packager and a provider of
transient accommodations at noncommissioned
negotiated contract rates. (Section 237-18(g).)
For more information, see Attorney General
Opinion 65-6.

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
report the exempt amounts, you must report on
Schedule GE (Form G-45/G-49) the exemptions
you are claiming on Forms G-45 and G-49. For
circumstances under which an exemption is permitted or allowed, refer to the following sections:
Air Pollution Control Facility: Gross proceeds from, and the tangible personal property
furnished in conjunction with the construction,
reconstruction, erection, operation, use, or maintenance of an air pollution control facility (APCF)
are exempt. The APCF must be certified by the
Department of Health (DOH) at least once every five years and file this certification with the
Department of Taxation (DOTAX). An exemption may not be claimed if the APCF does not
have a valid certificate from the DOH on file with
DOTAX. Report these amounts with ED Code
101 on the Schedule GE (Form G-45/G-49).
(Section 238-3(k).)
Aircraft Leasing: Amounts received as rent for
the rental or leasing of aircraft or aircraft engines
that is used by the lessee for interstate air transportation of passengers and goods are exempt.
Report these amounts with ED Code 102 on the
Schedule GE (Form G-45/G-49). (Section 238-1.)
Aircraft Service and Maintenance Facility:
Materials, parts, or tools imported or purchased
by a person with a GET license and which are
used for certain types of aircraft service and
maintenance, or for the construction of a qualified aircraft service and maintenance facility, are
exempt. Report these amounts with ED Code
103 on the Schedule GE (Form G-45/G-49).
(Section 238-1.)
Casual Purchases: A sale of tangible personal property by someone not in the business of selling the property is called a casual
sale. (See “Casual Sales,” discussed under the
Schedule of General Excise Tax Exemptions and
Deductions.) Because gross income derived
from a casual sale is excluded from gross income
Page 10

subject to the GET, the landed value of tangible
personal property acquired in a casual sale also
is not subject to the use tax. Do not report these
amounts. (Section 238-1.)
Contracting: A contractor importing contracting
that will become identifiable elements of the project is exempt provided that the contractor is subject to the GET as a contractor and the contractor would have been able to deduct the amounts
paid to the subcontractor if the subcontractor
was subject to the GET. Report these amounts
with ED Code 133 on the Schedule GE (Form
G-45/G-49). See Tax Facts 99-3 for more information. (Section 238-2.3(1)(C).)
Diplomats and Consular Officials: The use
of property, services, or contracting imported by
foreign diplomats and consular officials holding
cards issued by the U.S. Department of State
granting them an exemption from state taxes are
exempt. Report these amounts with ED Code
110 on the Schedule GE (Form G-45/G-49).
(Section 238-1.) The tax exemption, however, is
not applicable to taxes imposed on telecommunication services, other utilities, or gasoline purchases. For more information, see Department
of Taxation Announcement Nos. 2000-07, 201125 and 2013-03, Tax Facts 2016-1.
Director of Taxation’s Authority to Exempt,
Exclude or Apportion the Use Tax: Imports
of property, services, or contracting to the extent
that the GET would have applied to a similarlysituated taxpayer engaged in a local transaction.
The Director of Taxation (Director) has the authority to:
(1) Exempt or exclude from the use tax,
property, services, or contracting, or the
use of property, services, or contracting
exempted from the GET; or
(2) Apportion the gross value of services or
contracting sold to customers within the
State by persons engaged in business both
within and without the State to determine

the value of that portion of the services or
contracting that is subject to the GET for
the purposes of section 237-21.
The Director will use the authority to exempt, exclude, or apportion the value of imported property, services, or contracting when an exemption,
exclusion, or apportionment of gross receipts
would be allowed under the General Excise Tax
Law in the case of a similar local transaction.
(Section 238-3(a).)
Drugs and Prosthetic Devices for Personal
Use: If you are an individual who bought drugs
or prosthetic devices from a hospital, infirmary,
medical clinic, health care facility, pharmacy, or
a practitioner licensed to administer the drug to
an individual, the landed value of the drugs or
prosthetic devices is exempt from use tax. Do
not report these amounts. (Section 238-1.)
Producers: Certain property used by licensed
producers is either taxed at a ½% rate or is exempt, depending on whether the imported property is going to be resold at retail. For ex