Haw. Code R. § 18-237-29.53-04
Services related to real property are used or consumed where the real property is located Services related to real property include, but are not limited to, property management, real estate sales, real estate inspections, and real estate appraisals
Example 1: RPM Co., a Hawaii real property management company, is hired by RE Investor Inc., a Hawaii corporation, to manage a California property. All of the value or gross income that RPM Co. receives from RE Investor Inc. to manage the California property is exempt under section 237-29.53, HRS, because the property management services are used or consumed in California, where the real property is located.
Example 2: CPM LLC, a California real property management company, is hired by Irene Investor, a California resident who owns real property in Hawaii, to manage her property. All of the value or gross income that CPM LLC receives to manage the Hawaii property is not exempt under section 237-29.53, HRS, because the property management services are used or consumed in Hawaii, where the real property is located.
Example 3: The Hawaii office of Legal Services LLP, a law firm with offices throughout the United States, is hired by Lisa Landlord, a Hawaii resident, to draft lease agreements for her rental properties in Hawaii, Arizona, and Nevada. Legal Services LLP charges Lisa Landlord $200 each for the Hawaii lease, Arizona lease, and Nevada lease, for a total fee of $600. Legal Services LLP shall report $600 in gross income on its general excise tax return and may claim two-thirds, or $400, as exempt under section 237-29.53, HRS, because two-thirds of the services relate to real property located outside Hawaii and are therefore used or consumed outside Hawaii.
Haw. Code R. § 18-237-29.53-04