STATE OF HAWAII—DEPARTMENT OF TAXATION
  2024 
  (REV. 2023)                      INSTRUCTIONS FOR FORM U-6
                                   PUBLIC SERVICE COMPANY TAX RETURN
              (Public Service Company Tax Law, Chapter 239, Hawaii Revised Statutes (HRS))

              CAUTION:  THIS RETURN IS TO BE BASED ON OPERATIONS FOR THE PRECEDING 
              TAXABLE YEAR BEGINNING IN 2023. HOWEVER, SEE “Special Rules” FOR TAXPAYERS 
              REPORTING THEIR FIRST YEAR OR SECOND YEAR OF DOING BUSINESS.

Where To Get Tax Forms and Information. —                                          Definition of Certain Terms Used in Chapter 239, HRS. —
Hawaii State tax forms, instructions, schedules, and information may be ob-        “Gross income” means the gross income from public service company 
tained at any Department district office or from the Department’s website at        business as follows:
tax.hawaii.gov, or you may contact a customer service representative at:            (1) Gross income from the production, conveyance, transmission, de-
808-587-4242 or 1-800-222-3229 (Toll-Free).                                         livery or furnishing of light, power, heat, cold, water, gas or oil;
For the counties’ tax forms and information contact:                                (2) Gross income from the transportation of passengers or freight, or 
       City and County of Honolulu                                                  the conveyance or transmission of telephone or telegraph messag-
       Department of Budget and Fiscal Services                                     es other than mobile telecommunications services, or the furnishing 
       Division of Treasury - Miscellaneous Receivable Section                      of facilities for the transmission of intelligence by electricity, by land 
       715 South King Street, Suite 502                                             or water or air:
       Honolulu, HI  96813                                                          (a) Originating and terminating within this State;
       Telephone:  808-768-3970                                                     (b) By means of vessels or aircraft having their home port in the 
       County of Maui                                                               State and operating between ports or airports in the State, with 
       Department of Finance                                                        respect to the transportation so effected; or
       200 South High Street                                                        (c) By means of plant or equipment located in the State, between 
       Kalana O Maui Bldg., 2nd Floor                                               points in the State;
       Wailuku, HI  96793                                                           (3) Gross income from the conveyance or transmission of messages 
       Telephone:  808-270-7844                                                     or intelligence through wires or cables located or partly located in 
       Fax:  808-270-7878                                                           the State (other than as stated in paragraph (2) or (5)); (See Who 
       County of Hawaii                                                             Must File Form U-6, for other lines of business not subject to public 
       Department of Finance                                                        service company tax.)
       Treasury Division                                                            (4) Gross income from the operation of a private sewer company or 
       25 Aupuni Street, Room 1102                                                  private sewer facility; or
       Hilo, HI  96720-4245                                                         (5) With respect to a home service provider of mobile  telecommuni-
       Telephone: 808-933-6212                                                      cations services, “gross income” includes charges billed for mobile 
       Fax:  808-961-8946                                                           telecommunications services provided by a home service provider 
       County of Kauai                                                              to a customer with a place of primary use in this State when the 
       Department of Finance                                                        mobile telecommunications services originate and terminate within 
       Mo’ikeha Building                                                            the same state; provided that all such charges for mobile telecom-
       4444 Rice Street, Suite 280                                                  munications services that are billed by or for the home service pro-
       Lihue, HI  96766                                                             vider are deemed to be provided by the home service provider at 
       Telephone:  808-241-6525                                                     the customer’s place of primary use, regardless of where the mobile 
       Fax:  808-214-6529                                                           telecommunications services originate, terminate, or pass through. 
                                                                                    Gross income shall not include:
The Nature of the Tax. —                                                            (a) Any charges for or receipts from mobile telecommunications ser-
The public service company tax is measured by a percentage of the com-              vices provided to customers of the home service provider whose 
pany’s gross income from the public service company business earned during          place of primary use is outside this State;
the company’s preceding taxable (operational) year. The tax is based upon           (b) Any receipts of a home service provider acting as a serving car-
the previous year’s gross income from public service company business, but          rier providing  mobile telecommunications  services  to another 
is not being imposed for the previous year. For example, a Public Service           home service provider’s customer; and
Company Tax Return for the calendar year 2024 is filed for the tax imposed on 
January 1, 2024, and is due on April 20, 2024. The tax is calculated by using       (c) Any receipts specifically from interstate or foreign mobile tele-
the company’s gross income from public service company business earned              communications  services taxable  under  section 237-13(6)(E), 
during the 2023 calendar year.                                                      HRS, as determined by the home service provider’s books and 
                                                                                    records kept in the ordinary course of business.
 The tax is a means of taxing the personal property of a public utility, tangi-
ble and intangible, including going concern value. The tax is in lieu of all other  For the purposes of this paragraph, “customer” means:  (1) the person or 
taxes except income taxes, county vehicular taxes, public utility fees, public     entity that contracts with the home service provider for mobile telecommunica-
utility franchise taxes, use or consumption taxes, and employment taxes.           tions services; or (2) if the end user of mobile telecommunications services is 
                                                                                   not the contracting party, “customer” means the end user of the mobile tele-
Note:  Public utility companies, as defined below, are liable for both the public  communications service; provided that this paragraph shall apply only for the 
service company tax and the public utility fee. The public service company tax     purpose of determining the place of primary use. Without implication for the 
is administered by the Department and the public utility fee is administered by    general definition of “customer,” the term does not include:
the Public Utilities Commission (PUC). Accordingly, the public utility fee shall 
be paid to the PUC in the form and manner prescribed by the PUC.                    (a) A reseller of mobile telecommunications service; or
                                                                                    (b) A serving carrier under an arrangement to serve the customer 
Determining What Tax Year Form U-6 to File. —                                       outside the home service provider’s licensed service area.
The tax year is determined by the first day of the company’s tax year, as that     “Home service provider”  means the facilities-based  carrier or reseller 
is the day the tax is imposed. For example, a calendar year taxpayer whose          with which the customer contracts for the provision  of mobile 
tax year begins on January 1, 2024 would file a 2024 Form U-6; a fiscal year        telecommunications services.
taxpayer whose tax year begins at any time in the year 2024, would file a 2024 
Form U-6.                                                                          “Mobile  telecommunications  service” means commercial  mobile  radio 
                                                                                    service, as defined in title 47 Code of Federal Regulations section 20.3 
                                                                                    in effect on June 1, 1999.

                                                                                                                                               PAGE 1 

“Place of primary use” means the street address representative of where                leased to it by a lease under which the public utility is required to pay the taxes 
the customer’s use of the mobile telecommunications service primarily                  upon the property); and (2) the county has not denied the exemption to the 
occurs, which must be:  (1) the residential street address or the primary              public utility, but excluding a denial based upon a dispute as to the ownership, 
business street address of the customer; and (2) within the licensed                   lease, or use of a specific parcel of real property, then there shall be levied and 
service area of the home service provider.                                             assessed a tax in excess of the 4% rate determined in the manner hereinafter 
The words “gross income” and “gross income from public service com-                    provided upon the gross income allocable to such county. The revenues gen-
pany business” shall not be construed to include dividends (as defined by sec-         erated from the tax in excess of the 4% rate hereinbefore established shall be 
tion 235-1, HRS) paid by one member of an affiliated public service company            paid by the public utility directly to such county based upon the proportion of 
group to another member of the same group; or gross income from the sale or            gross income from its public utility business attributable to such county, based 
transfer of materials or supplies, interest on loans, or the provision of engineer-    upon the allocation made in the public utility’s filings with the State of Hawaii, 
ing, construction, maintenance or managerial services by one member of an              provided that if the gross income from the public utility business attributable to 
affiliated public service company group to another member of the same group.           such county is not so allocated in the public utility’s State filings, then the gross 
“Affiliated public service company group” means an affiliated group of domes-          income from the public utility business shall be equitably allocated to each 
tic corporations within the meaning of Chapter 235, HRS, all of the members            county. The relative number of access lines in each county shall be deemed 
of which are public service companies. “Member of an affiliated public service         an acceptable basis of equitable allocation for telecommunication companies.
company group” means a corporation (including the parent corporation) that is          NOTE:  Do NOT use Form U-6 to calculate and/or remit the counties’ share 
included within an affiliated public service company group.                            of the public service company tax. Form U-6 should be used only to calculate 
Accounts found to be worthless and actually charged off for income tax                 and remit the State of Hawaii’s portion of the public service company tax.
purposes, at corresponding periods, may be deducted from gross income                  Authentication.—Returns shall be authenticated by the original signature 
as specified under Chapter 239, HRS, so far as the accounts reflect taxable            of an officer of the public service company authorized to sign the Form U-6.  
sales, but shall be added to gross income when and if subsequently collected.          The fact that an individual’s name is signed on the return shall be prima facie 
                                                                                       evidence that such individual is authorized to sign the return on behalf of the 
“Home port” means the place where vessels or aircraft have their tax                   public service company.
situs or principal tax situs.
“Net operating income” of a public utility subject to the tax rate imposed             Paid Preparer’s Information.—The Paid Preparer’s Information at the 
by section 239-5(a), HRS, is the operating revenues less the operating                 bottom of page 1 of Form U-6 must be signed and completed by the person 
expenses and tax  accruals, including in the  computation of  such                     or in the name of the firm or corporation paid to prepare the return. Individual 
revenues  and expenses, debits and credits arising  from equipment                     preparers may furnish their alternative identifying number for income tax re-
rents and joint facility rents. In the event that, but for this sentence,              turn preparers (PTIN) instead of their social security number. (Note: Pursuant 
deductions could not be had for expenses of services because such                      to Department of Taxation Announcement No. 2009-33, paid preparers may 
services were rendered by the same person or persons constituting                      now sign original returns, amended returns, or request for filing extensions by 
the public utility or could not be had for income taxes, because such                  rubber stamp, mechanical device, or computer software program.)
taxes were levied against the person or persons constituting the public                Mandatory Electronic Filing of Tax Returns. —
utility in the person’s or their individual capacity and not as a separate 
entity, there nevertheless shall be allowed as deductions in computing                 The Department requires public service company taxpayers to file electroni-
the net operating income (A) a reasonable allowance for the value of                   cally, unless a waiver is obtained by filing Form L-110. The penalty for failure to 
personal services actually rendered,  and (B) such proportion  of the                  file electronically is 2% of the tax due. For more information, see Department 
actual amounts of income taxes, federal and state, as fairly represents                of Taxation Announcement No. 2019-13.
the portion of the income so taxed which was derived from the public                   When Must Form U-6 Be Filed. —
utility business.                                                                      In the first year of doing business, Form U-6 is due on the twentieth day of 
“Partner” means the same as in the Internal Revenue Code.                              the third month after the month the public service company begins business.  
“Partnership” means the same as in the Internal Revenue Code.                          Thereafter, the return shall be filed on or before the twentieth day of the fourth 
“Ports,” “airports,” or “points in the State” shall be deemed to be such               month following the close of the preceding taxable year. For a calendar year 
if  they  are loading, unloading,  transshipment, assembly,  transfer,  or             basis taxpayer, the return is due on or before April 20, of each return year.
relay points.                                                                          Private Delivery Services.—Hawaii has adopted the Internal Revenue 
“Public service company” means a public utility.                                       Code provision to allow documents and payments delivered by a designated 
                                                                                       private delivery service to qualify for the “timely mailing treated as timely filing/
“Public utility” has the meaning given that term in section 269-1, HRS.                paying rule.” The Department will conform to the Internal Revenue Service list-
When Is the Public Service Company Tax                                                 ing of designated private delivery service and type of delivery services qualify-
                                                                                       ing under this provision. Timely filing of mail which does not bear the U.S. Post 
Imposed. —                                                                             Office cancellation mark or the date recorded or marked by the designated 
In the first year of doing business, the tax is imposed on the first day, or com-      delivery service will be determined by reference to other competent evidence. 
mencement date, of the public service company’s business. Thereafter, the              The private delivery service can tell you how to get written proof of the mailing 
tax is imposed or assessed on the first day of the public service company’s            date.
selected year. Therefore, for a public service company on a calendar year              Extension of Time To File.—If you are unable to meet the filing deadline, 
basis, the tax is imposed on January 1 of each year; and for a fiscal year basis       you should ask for an extension on Form N-755, Application for Automatic 
public service company, it is imposed on the first day of the selected fiscal pe-      Extension of Time to File Public Service Company Tax Return. This is an ex-
riod. The public service company tax is not accrued or imposed incrementally           tension of time to file, not an extension of time for payment of tax.
throughout the calendar or fiscal year.
                                                                                       Note: If any date falls on a Saturday, Sunday, or legal holiday, substitute the 
Who Must File Form U-6. —                                                              next regular workday.
Each public service company shall file Form U-6, showing its taxable gross 
income for the preceding taxable year. In case any public service company              When Is the Tax Payable. —
carries on lines of business other than its public service company business,           In the first year of doing business, the payment of tax is due on the twentieth 
the receipts therefrom shall not be subject to public service company tax, but         day of the third month after the month that the public service company begins 
the same tax liabilities shall attach to such public service company on account        business. Thereafter, the tax is payable on or before the twentieth day of the 
of such other lines of business as would exist if no public service company            fourth month following the close of the preceding taxable year. Stated differ-
business were done.                                                                    ently, the tax is due on or before the twentieth day of the fourth month following 
Section 239-6, HRS, provides that motor carriers, common carriers by wa-               the imposition date. This date coincides with the due date of Form U-6.
ter, and contract carriers other than motor carriers are no longer subject to          If the total tax due is paid when the Form U-6 is filed or when applying for 
the public service company tax. The gross income received for transportation           an extension of time to file (or when paying additional tax due when filing an 
services by these carriers are now subject to the general excise tax imposed           amended return), attach your payment to the Form U-6 or Form N-755. Form 
under section 237-13(6), HRS.                                                          VP-2, Miscellaneous Taxes Payment Voucher, is no longer required when 
Section 239-5(a), HRS, imposes the public service company tax upon the                 making a payment with Form U-6 or Form N-755.
gross income of the public utility at the rate of 4%, provided that if:  (1) a county  The public service company may elect to pay the tax due in four equal 
provides by ordinance for a real property tax exemption for real property used         quarterly installments on or before the twentieth day of the fourth, sixth, ninth, 
by a public utility in its public utility business and owned by the public utility (or and twelfth months following the close of the preceding taxable year. However, 
PAGE 2 

if the total tax liability exceeds $100,000, the tax due is payable in twelve equal  (3) The return and payment of the tax is due on the twentieth day of 
monthly installments on or before the tenth day of each month following the          the third month after the month that the company begins busi-
close of the preceding taxable year. Installment payments of the public service      ness.
company tax are reported and paid on Form FP-1. If any installment is not paid       (4) The estimate must be corrected to reflect the actual gross in-
on or before the date fixed for its payment, the Department, at its election may     come for the year via an amended return which must be filed by 
cause the balance of the tax unpaid to become payable upon not less than ten         the twentieth day of the fourth month following the close of the 
days’ notice and demand, and this amount shall be paid upon the date so fixed        first taxable year. The amended return is used to claim the ap-
in the notice and demand from the Department.                                        propriate overpayment or pay any additional tax due.
Note: If any due date falls on a Saturday, Sunday, or legal holiday, substitute     2.  The second year of doing business.
the next regular workday.
                                                                                     a.  Form  U-6  is  filed  using  an  estimate  of  the  company’s  average 
 Electronic Funds Transfer (EFT).—Section  231-9.9,  HRS,  authorizes                monthly gross income during the period from and after the com-
the Department to require those taxpayers whose tax liability for a particular       mencement of business to the close of the second year, multiplied 
tax exceeded $100,000 during the past year to pay that tax by EFT instead of         by twelve.
by check. The Department reviews the filing records of taxpayers and will mail 
notices to taxpayers who met this criterion. Any taxpayer who does not meet          b.  The tax is at the rates provided by section 239-5, HRS.
the criterion may still voluntarily pay by EFT. For more information on paying       c.  The return and payment of tax is due on the twentieth day of the 
taxes by EFT, please see Tax Information Release (TIR) Nos. 95-6, “Ques-             fourth month following the close of the company’s first taxable year.
tions and Answers on Paying Taxes by Electronic Funds Transfer,” and 99-1,           d.  An amended return is required to adjust the estimate to the actual 
“Filing of Tax Returns Required by Taxpayers Who Pay Taxes by Electronic               average monthly gross income during the period from  and after 
Funds Transfer (EFT).”                                                               the commencement of business to the close of the second year, 
IMPORTANT: A penalty of 2% of the tax due will be assessed if a taxpayer             multiplied by twelve. Any overpayment is claimed or balance due is 
who is required to make payments by EFT does not do so without reasonable            reported and paid on the amended return. The amended return is 
cause. If an EFT payment is dishonored, a $25 service fee will be assessed.          due on or before the twentieth day of the fourth month following the 
                                                                                     close of the company’s second taxable year.
Penalties and Interest.––                                                           3.  The third year of doing business.
Late Filing of Return—The penalty for failure to file a return on time is as-        a.  Form U-6 is filed using the company’s gross income from the sec-
sessed on the tax due at a rate of 5% per month, or part of a month, up to a         ond taxable year.
maximum of 25%.
Failure to Pay Tax After Filing a Timely Return —The penalty for failure to pay      b.  The tax is at the rates provided by section 239-5, HRS.
the tax after filing a timely return is 20% of the tax unpaid within 60 days of the  c.  The return and payment of tax is due on the twentieth day of the 
prescribed due date.                                                                 fourth month following the close of the company’s second taxable 
Failure to File Electronically – Form U-6 MUST be filed electronically unless        year.
you obtain a waiver. Use Form L-110 to apply for a waiver. The penalty for          Protective Claim.—
failure to file electronically is 2% of the tax due.                                A protective refund claim is a claim filed to protect a taxpayer’s right to a po-
Failure to Pay by EFT – The penalty for failure to pay by EFT for taxpayers         tential refund based on a contingent event for a taxable period for which the 
who are required to pay by EFT is 2% of the tax due.                                statute of limitations is about to expire. A protective claim is usually based 
Interest —Interest at the rate of 2/3 of 1% per month, or part of a month, shall    on contingencies such as pending litigation or an ongoing federal income tax 
be assessed on unpaid taxes and penalties beginning with the first calendar         audit or an audit in another state. For more information see Tax Facts 2021-2, 
day after the date prescribed for payment, whether or not that first calendar       “Protective Claim.”
day falls on a Saturday, Sunday, or legal holiday.                                  Allocation and Apportionment.—
Where to File the Return.—                                                          If a public service company is engaged in interstate or foreign commerce and 
 Form U-6 MUST be filed electronically at hitax.hawaii.gov.                         an apportionment of gross income is necessary, section 239-8, HRS, provides 
                                                                                    for an apportionment on the basis of total direct cost of the transportation, con-
 You may also mail Form U-6 and payment in full to:                                 veyance, or transmission within the State. “Direct cost” is interpreted to mean 
      Hawaii Department of Taxation                                                 and include payroll or labor hired for the handling and transportation of prop-
      P.O. Box 259                                                                  erty or persons from the point of origin to the point of destination, payroll taxes 
      Honolulu, HI  96809-0259                                                      attributable to such payrolls, materials used or consumed by the taxpayer in 
Application of the Tax.—                                                            the handling and transportation of property or persons from the point of origin 
Special Rules.                                                                      to the point of destination, that portion of any rent on leased equipment which 
                                                                                    is attributable to the use of such leased equipment in the handling and trans-
1.  The first year of doing business.                                               portation of property or persons from the point of origin to the point of destina-
 a.  A company in business on January 1 or at the start of the fiscal year,         tion, that portion of depreciation on equipment owned by the taxpayer which 
      but not in business during any part of the preceding calendar or fis-         is attributable to the use of such equipment in the handling and transportation 
      cal year, respectively:                                                       of property or persons from the point of origin to the point of destination, that 
                                                                                    portion of the maintenance and upkeep of equipment which is attributable to 
      (1) Form U-6 is filed by using an estimate of the gross income from           the use of such equipment in the handling and transportation of property or 
      the public service company business for the first year that the               persons from the point of origin to the point of destination, overload and ocean 
      company is engaged in business.                                               freight, and insurance.
      (2) The tax is at the rate provided by section 239-5, HRS.                    Acquiring the Business of Another Company.—
      (3) The return and payment of the tax is due on the twentieth day of          Subsection (f) of section 239-9, HRS, relates to the acquisition by one public 
      the third month after the month that the company begins busi-                 service company of the business of another and provides for treating the gross 
      ness.                                                                         income of the company so acquired the same as if it were gross income of the 
      (4) The estimate must be corrected to reflect the actual gross in-            acquired company, that is, the gross income to be reported by the acquiring 
      come for the year via an amended return which must be filed by                company for the purpose of determining the amount of its tax for the year 
      the twentieth day of the fourth month following the close of the              following the year in which such business was so acquired shall include, in 
      first taxable year. The amended return is used to pay any ad-                 addition to the gross income of the acquiring company during the year ending 
      ditional tax due.                                                             December 31 preceding, the gross income of the business or part thereof so 
 b.  A company not in business on January 1 or at the start of the fiscal           acquired for such portion of such preceding year.
      year, but business is commenced during the calendar year or fiscal            Consolidation or Merger.—
      year, respectively:
                                                                                    Subsection (g) of section 239-9, HRS, relates to the consolidation or merger of 
      (1) Form U-6 is filed by using an estimate of the gross income from           public service companies and provides that the liability to the tax shall attach 
      the public service company business for that portion of the first             to the company thus formed and the company thus formed shall include in its 
      year that the company is engaged in business.                                 gross income, the gross income of the companies involved in the consolida-
      (2) The tax is at the rate of 4%.                                             tion or merger.
                                                                                                                                                PAGE 3 

Changing Accounting Period From Calendar Year to                                 Line F — Credit for Lifeline Telephone Service Subsidy.—Section 239-
Fiscal Year.—                                                                    6.5, HRS, provides that a telephone public utility subject to Chapter 239, HRS, 
                                                                                 that has been authorized to establish a lifeline telephone service rate by the 
The amount of the public service company tax which is assessed for the cal-      public utilities commission shall be allowed a tax credit equal to the lifeline 
endar year and the payment schedule for the tax that is established at the       telephone service costs incurred by the utility company, such credit shall be 
beginning of the calendar year are not affected or canceled when a company       applied against the telephone utility’s tax imposed by Chapter 239, HRS. The 
changes its accounting period to a fiscal year.                                  amount of the credit shall be determined and certified annually by the public 
A company which changes its accounting period from a calendar to a fiscal        utilities commission.
year is subject to the following requirements:                                   Line H — Payment with Extension.—Enter the amount of public service 
1.  Submit a written request for a change in the accounting  period              company tax paid with Form N-755, Application for Automatic Extension of 
       which is approved by the Department of Taxation.                          Time to File Public Service Company Tax Return. Attach a copy of Form N-755 
2.  File Form U-6 for the new accounting period. The original Form U-6           to your tax return.
       reporting taxable gross income for the calendar year and a second         Line I — Tax Installment Payments.—Enter the total amount of public 
       Form U-6 reporting taxable gross income for the fiscal year must be       service company tax installments paid up to the date of filing the return. Install-
       filed.                                                                    ment payments of the public service company tax are reported and paid on 
3.  Offset the taxable gross income for the duplicated months. To avoid          Form FP-1.
       being taxed twice for the duplicated months, an offset for the tax-       Part II. — For Public Utilities Taxed Only Under Section 239-5(b), HRS.
       able gross income for the duplicated months will be allowed on the 
       second Form U-6.                                                          In the case of a public utility taxed under section 239-5(b), HRS, (relating to 
4.  No carryover of excess amounts. If the taxable gross income for the          carriers of passengers by land which consists in passenger fares on sched-
       duplicated months on the original Form U-6 exceeds the monthly            uled routes), the rate of tax shall be 5.35%. However, if such carrier has other 
       taxable gross income on the second Form U-6, the excess amounts           public utility gross income, the passenger fares nevertheless shall be included 
       shall not be carried over and offset against the income for the undu-     in determining the rate of tax upon the other public utility gross income.
       plicated months on the second Form U-6.                                   Public utilities taxed under section 239-5(b), HRS, shall report such public 
For additional information, see TIR No. 98-7, “Change in Accounting From         utility gross income on Form U-6, page 1, lines 1a(1) through 1a(3), and then 
Calendar Year to Fiscal Year For Public Service Companies.”                      use page 2, Part II, to compute the tax due. All other items and schedules may 
                                                                                 be disregarded unless other public utility gross income under section 239-5(a), 
Terminating Business Operations.—                                                HRS, is involved.
Since the public service company tax is imposed and payable in full on the       Line B — Payment with Extension.—Enter the amount of public service 
imposition or assessment date, which is on the first day of the public service   company tax paid with Form N-755, Application for Automatic Extension of 
company’s selected year, the termination of business operations during the       Time to File Public Service Company Tax Return. Attach a copy of Form N-755 
calendar or fiscal year; other than, as previously discussed, an acquisition by  to your tax return.
another public service company or by consolidation or merger; does not affect    Line C — Tax Installment Payments.—Enter the total amount of public 
the company’s liability for the tax. As such, the company is required to remit   service company tax installments paid up to the date of filing the return. Install-
the taxes due on the elected payment schedule.                                   ment payments of the public service company tax are reported and paid on 
                                                                                 Form FP-1.
SPECIFIC INSTRUCTIONS
                                                                                 Part III. — For Public Utilities Taxed Only Under Section 239-5(c), HRS.
Change of Address.—                                                              In the case of a public utility taxed under section 239-5(c)(1), HRS, (relating to 
If your mailing address has changed, you must notify the Department of the       sales of products or services to another public utility which resells such prod-
change by completing Form ITPS-COA, Change of Address Form, or log in            ucts or services), will be taxed at 0.5%. In the case of a public utility taxed un-
to your Hawaii Tax Online account at hitax.hawaii.gov. Failure to do so may      der section 239-5(c)(2), HRS, (relating to sales of telecommunication services 
prevent your address from being updated, any refund due to you from being        to a person defined in section 237-13(6)(D), HRS, who resells such products 
delivered (the U.S. Postal Service is not permitted to forward your State refund or services), will be taxed at 0.5%. However, if such public utility has other 
check), and delay important notices or correspondence to you regarding your      public utility gross income, the gross income from the sale of its products or 
return.                                                                          services to another public utility or to a person subject to section 237-13(6)
Section I — Computation of Adjusted Gross Income.                                (D), HRS, shall be included in determining the rate of tax upon the other public 
                                                                                 utility gross income.
Gross Income From Preceding Taxable Year.                                        Public utilities taxed under section 239-5(c), HRS, shall report such public 
Lines 1a(2), 1b(2), 1c(2), and 1d(2) — Worthless Accounts Charged                utility gross income on Form U-6, page 1, lines 1b(1) through 1b(3) and/or 
Off for Net Income Tax Purposes.—This deduction from gross income can            lines 1c(1) through 1c(3), and then use page 2, Part III, to compute the tax 
only be taken for worthless accounts (bad debts) charged off for net income      due. All other items and schedules may be disregarded unless other public 
tax purposes on or after June 22, 1998.                                          utility gross income under section 239-5(a), HRS, is involved.
Line 1(c)1 — Section 239-5(c), HRS, provides that the portion of the gross       Line D — Payment with Extension.—Enter the amount of public service 
income of a public utility engaged in the business of selling telecommunication  company tax paid with Form N-755, Application for Automatic Extension of 
services to a person defined in section 237-13(6)(D), HRS, who resells such      Time to File Hawaii Franchise Tax Return (Form F-1) or Public Service Com-
products or services subject to taxation at the highest rate under section 237-  pany Tax Return (Form U-6). Attach a copy of Form N-755 to your tax return.
13(6), HRS, will be taxed at 0.5%.                                               Line E — Tax Installment Payments.—Enter the total amount of public 
Section II — Computation of Tax                                                  service company tax installments paid up to the date of filing the return. Install-
                                                                                 ment payments of the public service company tax are reported and paid on 
Part I. — For Public Utilities Taxed Under Section 239-5(a), (b), and            Form FP-1.
(c), HRS.
Public utilities taxed under section 239-5(a), HRS, shall use Form U-6, 
page 2, Part I to compute the tax due. However, it will be necessary to first 
complete the items of gross income and deductions on page 1 before using 
Part I.

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