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

Universal Citation: HI Admin Rules 18-237-29.53-01
Current through November, 2023

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.

[Eff 3/17/2018] (Auth: HRS §§ 231-3(9), 237-8) (Imp: HRS § 237-29.53)

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