The Hawaii Supreme Court has accepted applications for writ of certiorari in four consolidated tax appeal cases involving research and science companies challenging Hawaii state tax assessments. The order, filed Jan. 5, 2026, consolidates appeals from PM & AM Research, Inc., Big Island Science Center, LLC, and Whale Watchers, LLC against the State of Hawaii.
The consolidated cases, designated SCWC-XX-XXXXXXX through SCWC-XX-XXXXXXX, represent appeals from the Intermediate Court of Appeals. Each case originated in the Tax Court before proceeding through Hawaii's appellate system. The Supreme Court's decision to consolidate these matters suggests the cases involve related legal issues that warrant unified consideration at the state's highest judicial level.
PM & AM Research, Inc. appears as the appellant in two of the four consolidated cases, indicating multiple tax disputes between the research company and state tax authorities. The company's repeated appearances in the consolidated proceedings suggest ongoing disagreements over tax assessments that have persisted through multiple levels of appeal.
Big Island Science Center, LLC represents another research-focused entity challenging Hawaii's tax determinations. The inclusion of this science center alongside PM & AM Research suggests the disputes may involve common issues affecting research and scientific organizations operating in Hawaii.
Whale Watchers, LLC, while appearing to operate in a different sector, rounds out the consolidated appeals. The company's inclusion indicates the tax issues at stake may extend beyond traditional research organizations to encompass related business activities.
The consolidation of these cases through certiorari proceedings indicates the Hawaii Supreme Court has determined the appeals present questions of law that warrant review by the state's highest court. Certiorari review is discretionary, meaning the court specifically chose to hear these cases rather than being required to do so.
The involvement of Acting Chief Justice McKenna, along with Justices Eddins, Ginoza, and Devens, suggests a full complement of the court will consider these consolidated tax appeals. The participation of multiple justices in the acceptance order indicates the significance the court places on the legal issues presented.
Tax appeals involving research companies often center on complex questions of property classification, business activity taxation, or eligibility for research and development incentives. Hawaii's tax code includes various provisions designed to encourage research and scientific activities, but disputes can arise over proper interpretation and application of these provisions.
The consolidation suggests efficiency considerations played a role in the court's decision-making process. Rather than addressing potentially related legal questions across separate proceedings, the court has chosen to streamline the process through unified consideration of all four appeals.
For the companies involved, the Supreme Court's acceptance of their petitions provides an opportunity to seek reversal of unfavorable lower court decisions. The appeals process allows these entities to challenge tax assessments they believe were improperly imposed or calculated by state authorities.
The State of Hawaii, as respondent in all four cases, will defend its tax determinations and the lower courts' affirmation of those assessments. State attorneys will likely argue that existing tax law supports the assessments and that lower courts correctly applied relevant legal standards.
The timing of the consolidated appeals may reflect broader questions about Hawaii's approach to taxing research and scientific enterprises. As states compete to attract research and development activities, tax policy plays a crucial role in creating favorable business environments for these sectors.
Resolution of these consolidated appeals could establish important precedent for future tax disputes involving research companies and similar entities operating in Hawaii. The Supreme Court's eventual ruling will provide guidance for both taxpayers and tax authorities regarding proper interpretation of relevant statutory provisions.
The cases also highlight the multi-tiered nature of Hawaii's court system, with disputes progressing from the Tax Court through the Intermediate Court of Appeals before reaching the Supreme Court. This progression demonstrates the significance of the legal issues at stake and the parties' commitment to seeking definitive resolution.
The outcome of these consolidated proceedings will likely influence how Hawaii structures its tax policy toward research and scientific organizations. Depending on the court's ruling, the state may need to reassess its approach to taxing these entities or clarify existing statutory language to avoid future disputes.
As the cases proceed through briefing and argument phases, both the business community and tax practitioners will monitor developments closely for insights into Hawaii's tax law interpretation and application.