2015 Hawaii Revised Statutes
TITLE 14. TAXATION
233. Tax Classification of Certain Business Relationships
233-2 Same: application of taxes.

§233-2 Same: application of taxes. In the event of the adoption of a rule or regulation pursuant to section 233-1:

(1) The person, firm, corporation, or the like, who is the subject of the rule or regulation and thereafter engages or continues in the business of selling tangible personal property (A) shall be deemed to be selling the same to the persons or entities who would be the buyers if in fact, such representatives, distributors, dealers, salespersons, peddlers, canvassers, carriers, truckers, or the like were employees, (B) shall be deemed to be the employer of the persons classed by such rule or regulation as employees, and (C) shall be subject to all of the liabilities, duties, and obligations of the sellers and employers under the tax laws administered by the department of taxation.

(2) The persons so classed as employees (A) shall not be deemed to be buying such property or reselling the same, (B) shall be deemed to be the employees of the person so deemed an employer, and (C) shall be subject to all of the liabilities, duties, and obligations of employees, under the tax laws administered by the department.

(3) The rule or regulation of the department (A) shall provide for the collection, in lieu of withholding, of taxes levied upon the persons so classed as employees in cases in which the persons themselves retain, from receipts handled by them, their fees, charges, commissions, markups, percentages, or other remuneration, (B) shall designate the fees, charges, commissions, markups, percentages, or other remuneration, constituting the taxable compensation of the person classed as employees, and (C) shall contain such other provisions as may be necessary or proper to effectuate this chapter. [L 1955, c 195, §2; ree L 1959, c 277, §5(a); am L Sp 1959 2d, c 1, §16; Supp, §117A-2; HRS §233-2; gen ch 1993]