Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 237 - GENERAL EXCISE TAX LAW
Subchapter 2 - LICENSES; TAX; EXEMPTIONS
Section 18-237-29.53-12 - Cancellation and forfeiture charges

Universal Citation: HI Admin Rules 18-237-29.53-12
Current through November, 2023

Section 237-2953, HRS, shall not apply where all of the value or gross income is derived from cancellation fees, forfeited deposits, or other charges resulting from the cancellation or nonperformance of services

Example 1: ABC Company, an Arizona corporation with its principal place of business in Arizona, hires Paul Presenter, a motivational speaker who resides in Hawaii, to speak to ABC Company and its employees via live-stream from Hawaii. The live-stream will be accessed solely from ABC Company's office in Arizona. Two days before the live-stream event, ABC Company cancels the event. Paul Presenter charges ABC Company a cancellation fee pursuant to their contract. The gross income that Paul Presenter receives for the cancellation fee is not exempt under section 237-29.53, HRS.

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

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