On public utility gross income at graduated rates based on ratio of net to gross income. Minimum rate, 5.885%; maximum 8.2% except that land carriers are taxed at 5.35%.

This tax is imposed in lieu of state general excise and county real property taxes.  Payment is made as follows:  The state gets 4% on Form U-6.  The counties receive the balance.  The City and County of Honolulu has a form for reporting this tax; other counties may require utilities to send a letter detailing the calculation with the appropriate remittance.  Please check with the appropriate county finance agency.

Case law has established that gross income from ancillary business activities, such as advertising in the telephone directory when the utility is a telephone company, is subject to the general excise tax, not the public service company tax.

Distribution: That part of the tax collected by the state goes to the state general fund.  That part of the tax collected by the counties go to the respective county general funds.

SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2020 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.

Last Revised: August 18, 2021

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