Hawaii Administrative Rules
Section 18-231-96-01 - Fine for failure to record transaction

Universal Citation: HI Admin Rules 18-231-96-01

Current through August, 2023

(a) A person who conducts taxable business transactions in cash and who fails to offer a receipt or other record of the transaction and who fails to maintain a contemporaneously generated record of all business transactions conducted each day, shall be fined as follows:

(1) For a first offense, a fine of $500;

(2) For second and subsequent offenses, a fine of $1,000; provided that if the person is a cash-based business, the fine shall be $2,000

(b) For purposes of this section, a transaction is a business transaction if the activity of the person would require the person to hold a license or permit in accordance with any provision of title 14, HRS, or the rules adopted thereunder.

(c) For purposes of this section, the following methods will satisfy the requirements of this section:

(1) Cash register receipt (either by a manually operated register or by an electronic register), provided that the cash register tabulates and maintains records of total daily sales;

(2) Point of sale, scanner, or other computerized method, provided that the system tabulates and maintains records of total daily sales;

(3) Pre-numbered receipt book with at least an original and copy, provided that the receipts are used in numerical order, the receipt numbers are not reused, and at least one copy of all receipts is retained; or

(4) Contemporaneous log maintained by the person setting forth a general description of the goods and/or services sold, as well as the total gross proceeds of each transaction, as well as a statement advising the customer of the right to obtain a receipt. For purposes of this subsection, a prominently displayed sign in the immediate vicinity of where the goods and/ or services are paid for noting that a receipt will be given upon request shall suffice to satisfy such notice requirement, provided that such sign is clearly legible and visible.

(d) If the person is otherwise in compliance with title 14, HRS, at the time a fine for violation of section 231-96, HRS, is issued, the fine shall be commensurate with the violation as follows:

(1) For the first fine issued for a first offense under subsection (a)(1), the fine, or a portion thereof, may be waived at the discretion of the special enforcement section employee or other authorized department employee who issued the citation; and

(2) For second and subsequent fines under subsection (a)(2), such fines shall not be waived.

(e) For purposes of this section, "cash" shall include legal tender of any country, currency in whatever form, and negotiable instruments in whatever form, but shall not include charge card or debit card payments.

(f) For purposes of this section, a transaction is deemed to have occurred at the time that a customer pays for the goods and/or services and the person accepts the payment, notwithstanding any rights of return or refund that the customer may have.

(g) Only one citation may be issued to the person per day. Every citation issued under this section shall be considered as a separate violation.

[Eff 11/30/14] (Auth: HRS § 231-3(9)) (Imp: HRS § 231-96)

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