County Surcharge

County Surcharge - Summary

Allocate gross income or gross proceeds by Taxation District and business activity.

HAR section 18-237-8.6 may be obtained by clicking on the following link: HAR 18-237-8.6.

Sales of Tangible Personal Property - 18-237-8.6-02	Services - 18-237-8.6-03	Commissions - 18-237-8.6-04
Where the property is delivered.	1. Where the services are intended to be used or consumed; or	1. Where services are rendered except real estate services, where the real estate is located; or
Example of tangible personal property: Retail merchandise, machinery, vehicles, office equipment, etc.	2. Reasonable allocation method.	2. Reasonable allocation method.
Neighbor island business: Only pay if physical presence (nexus) established on Oahu.	Neighbor island business: Only pay if physical presence (nexus) established on Oahu.

Rental or Lease of Tangible and Intangible Personal Property - 18-237-8.6-05	Rental or Lease of Real Property - 18-237-8.6-06	Contracting - 18-237-8.6-07
1. Where the property is used; or	Where the property is located.	Where the job site is located.
2. Reasonable allocation method.

Investment Interest - 18-237-8.6-08(a)	Interest on Deferred Payment Sales - 18-237-8.6-08(b)	Theaters, Amusements - 18-237-8.6-09
1. Where the control of the investment is located unless the taxpayer can show that a different location should control; or	1. Where sale is sourced except real property, where the real property is located; or	1. Where the event takes place; or
2. Reasonable allocation method.	2. Reasonable allocation method.	2. Reasonable allocation method.

Department of Taxation, December 7, 2006.

Any comments or suggestions, please email Tax.Rules.Office@hawaii.gov.