§233-2  Same:  application of taxes.  Inthe event of the adoption of a rule or regulation pursuant to section 233-1:

(1)  The person, firm, corporation, or the like, whois the subject of the rule or regulation and thereafter engages or continues inthe business of selling tangible personal property (A) shall be deemed to beselling the same to the persons or entities who would be the buyers if in fact,such representatives, distributors, dealers, salespersons, peddlers,canvassers, carriers, truckers, or the like were employees, (B) shall be deemedto be the employer of the persons classed by such rule or regulation asemployees, and (C) shall be subject to all of the liabilities, duties, andobligations of the sellers and employers under the tax laws administered by thedepartment of taxation.

(2)  The persons so classed as employees (A) shall notbe deemed to be buying such property or reselling the same, (B) shall be deemedto be the employees of the person so deemed an employer, and (C) shall be subjectto all of the liabilities, duties, and obligations of employees, under the taxlaws administered by the department.

(3)  The rule or regulation of the department (A)shall provide for the collection, in lieu of withholding, of taxes levied uponthe persons so classed as employees in cases in which the persons themselvesretain, from receipts handled by them, their fees, charges, commissions,markups, percentages, or other remuneration, (B) shall designate the fees,charges, commissions, markups, percentages, or other remuneration, constitutingthe taxable compensation of the person classed as employees, and (C) shallcontain such other provisions as may be necessary or proper to effectuate thischapter. [L 1955, c 195, §2; ree L 1959, c 277, §5(a); am L Sp 1959 2d, c 1,§16; Supp, §117A-2; HRS §233-2; gen ch 1993]