Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 237 - GENERAL EXCISE TAX LAW › Subchapter 2 - LICENSES; TAX; EXEMPTIONS › Section 18-237-13-03 - Tax upon contractors

Current through June, 2024
(a) For the
				purposes of this section:
"Contractor" includes every person engaging in the business
				  of contracting to erect, construct, repair, or improve buildings or structures,
				  of any kind or description, including any portion thereof, or to make any
				  installation therein, or to make, construct, repair, or improve any highway,
				  road, street, sidewalk, ditch, excavation, fill, bridge, shaft, well, culvert,
				  sewer, water system, drainage system, dredging or harbor improvement project,
				  electric or steam rail, lighting or power system, transmission line, tower,
				  dock, wharf, or other improvements; every person engaging in the practice of
				  architecture, professional engineering, land surveying, and landscape
				  architecture, as defined in section
				  464-1, HRS; and every
				  person engaged in the practice of pest control or fumigation as a pest control
				  operator as defined in section
				  460J-1, HRS.
"Licensed specialty contractor" means the same as the term
				  is defined in section
				  444-7, HRS, in
				  chapter 16-77 and in Exhibit A entitled, Specialty Contractors Classifications,
				  located at the end, and made a part, of this chapter, and who is licensed under
				  chapter
				  444,
				  HRS.
"Owner-contractor" means an owner or lessee of property who
				  builds or improves residential, farm, industrial, or commercial buildings or
				  structures on such property for the owner-contractor's own use, or for use by
				  the owner-contractor's grandparents, parents, siblings, or children and does
				  not offer such building or structure for sale or lease, as distinguished from
				  the business of contracting which is taxed under section
				  237-13(3)(D),
				  HRS. The sale or lease, or offering for sale or lease, of such structure within
				  one year after completion is prima facie evidence that the construction or
				  improvement of such structure was undertaken for the purpose of sale or lease;
				  provided that this shall not apply to residential properties sold or leased to
				  employees of the owner or lessee; provided further that the owner or lessee
				  registers for an exemption from the contractors licensing law, under section
				  444-9.1,
				  HRS.
"Person" means the same as the term is defined in section
				  237-1, HRS.
"Prime contractor" means a person who:
(1) contracts directly with the owner,
				lessor, lessee, developer, mortgagor, mortgagee, or any other person, including
				another contractor or licensed specialty contractor, to engage in the
				activities listed in the definition of a contractor in chapter
				237, HRS; or
(2) performs the activities listed in the
				definition of a contractor in chapter
				237, HRS, except that this does not
				include an owner-contractor.
"Subcontractor" means a person who contracts with the prime
				  contractor to engage in the activities listed in the definition of a contractor
				  in chapter
				  237, HRS, and this rule.