Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 237 - GENERAL EXCISE TAX LAW › Subchapter 2 - LICENSES; TAX; EXEMPTIONS › Section 18-237-29.53-01 - Definitions

Current through June, 2024
As used in sections 18-237-2953-01 to 18-237-2953-13:
"Collection actions" means all actions taken to enforce a
				  money judgment or collect a debt
"Commissioned agent" means an agent that:
(1) sells, buys, leases, or procures property;
(2) sells, buys, or procures services; or
(3) sells, books, or arranges transient accommodations or
				  travel-related bookings on behalf of a principal, with the principal's assent,
				  for a predetermined fee. When a commissioned agent enters into a sales
				  transaction with a third party on behalf of a principal, the total price of the
				  sale is controlled by the principal; the total price cannot be unilaterally
				  determined by the agent.
"Customer" means the person personally receiving the
				  service.
"Noncommissioned negotiated contract rates" means the rates
				  specified in a negotiated contract between a travel agent or tour packager and
				  operator of a transient accommodation or operator of a travel-related booking
				  that the operator of a transient accommodation or operator of a travel-related
				  booking will receive for a transaction booked by the travel agent or tour
				  packager. When transient accommodations are furnished or travel-related
				  bookings are made through arrangements made by a travel agent or tour packager
				  at noncommissioned negotiated contract rates, the travel agent or tour packager
				  may unilaterally determine the mark-up of the noncommissioned negotiated
				  contract rate and the total price charged to the customer; the operator of the
				  transient accommodation or the operator of the travel-related booking has no
				  control over the mark-up or the total price.
"Transient accommodation" means the same as the term is
				  defined in section
				  237D-1, HRS.
"Travel-related booking" includes tours, excursions,
				  transportation, rental vehicles, shows, dining, spa services, and any other
				  reservation or booking made by a travel agent or tour packager.
Example 1:
World Travel Inc. enters into a
				  contract with Gold Hotel whereby World Travel Inc. may sell the right to occupy
				  rooms in Gold Hotel at $100 per room per night. The contract further provides
				  that World Travel Inc. will receive a fee often per cent for each sale. World
				  Travel Inc. is a commissioned agent of Gold Hotel.
Example 2:
Assume the same facts as in Example
				  1, except that the contract between World Travel Inc. and Gold Hotel provides
				  that World Travel Inc. will receive a fee of eight per cent if total sales for
				  the month are less than $10,000 or ten per cent if total sales for the month
				  are $10,000 or more. World Travel Inc. is a commissioned agent of Gold
				  Hotel.
Example 3:
Island Planner Co. enters into a
				  contract with Silver Hotel whereby Island Planner Co. may sell the right to
				  occupy rooms in Silver Hotel. For each booking made by Island Planner Co.,
				  Silver Hotel will receive $100 per room per night. Island Planner Co. may
				  unilaterally determine the mark-up and set the total price charged to the
				  customer. Island Planner Co. is arranging transient accommodations at
				  noncommissioned negotiated contract rates.
Example 4:
Assume the same facts as in Example
				  3, except that, for each booking made by Island Planner Co., Silver Hotel will
				  receive ninety per cent of the net rate, the best available rate offered by
				  Silver Hotel to the public at the time of the transaction. Island Planner Co.
				  may unilaterally determine the mark-up of the net rate and set the total price
				  charged to the customer. Island Planner Co. is arranging transient
				  accommodations at noncommissioned negotiated contract rates.
Example 5:
Hawaii's Best Inc., a travel agent,
				  enters into a contract with Oceanside Spa to sell massage and facial
				  treatments. For each massage or facial sold by Hawaii's Best Inc., Oceanside
				  Spa will receive $80. Hawaii's Best Inc. may unilaterally determine the mark-up
				  and set the total price charged to the customer. Hawaii's Best Inc. is making
				  travel-related bookings at noncommissioned negotiated contract
				  rates.