Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 237 - GENERAL EXCISE TAX LAW
Subchapter 2 - LICENSES; TAX; EXEMPTIONS
Section 18-237-13-06.11 - Tax on service business; tire recapping services

Universal Citation: HI Admin Rules 18-237-13-06.11

Current through November, 2023

(a) This section applies to the gross income derived from recapping a tire belonging to another person.

(b) When recapping services are rendered upon the order of or at the request of another taxpayer who is engaged in the service business and who in fact acts or acts in the nature of an intermediary between the person rendering such services and the ultimate recipient of the benefits of services:

(1) The gross income of the recapper takes the rate of one-half of one percent;

(2) The gross income of the intermediary takes the rate of four percent.

(c) When recapping services are rendered upon the order or request of another person who is not an intermediary within the meaning of subsection (b), the gross income of the recapper takes the rate of four percent.

Example 1: A customer takes a tire to service station operator (taxpayer S) for recapping. Taxpayer S in turn has the tire recapped by taxpayer R. Taxpayer R (tire recapper) is subject to a general excise tax of one-half of one percent on the amount received from taxpayer S for the recapping services rendered. Taxpayer S is subject to the general excise tax of four percent on the amount received from the customer.

Example 2: A customer takes a tire to the tire recapper (taxpayer R) for recapping. Taxpayer R is subject to the general excise tax rate of four percent on the amount received from the customer for the recapping services rendered.

[Eff 2/16/82; am 12/1/88; am 2/1/89; am 7/1/90; am and ren § 18-237-13-06.11 12/27/90] (Auth: HRS §§ 231-3(9), 237-8) (Imp: HRS § 237-13)

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