§237-18  Further provisions as toapplication of tax.  (a)  Where a coin operated device produces grossincome which is divided between the owner or operator of the device, on the onehand, and the owner or operator of the premises where the device is located, onthe other hand, the tax imposed by this chapter shall apply to each such personwith respect to the person's portion of the proceeds, and no more.

(b)  Where gate receipts or other admissionsare divided between the person furnishing or producing a play, concert,lecture, athletic event, or similar spectacle (including any motion pictureshowing) on the one hand, and a promoter (including any proprietor or otheroperator of a motion picture house) offering the spectacle to the public, onthe other hand, the tax imposed by this chapter, if the promoter is subject tothe tax imposed by this chapter, shall apply only to the promoter measured bythe whole of the proceeds, and the promoter shall be authorized to deduct andwithhold from the portion of the proceeds payable to the person furnishing orproducing the spectacle the amount of the tax payable by the person upon suchportion.  No tax shall apply to a promoter with respect to such portion of theproceeds as is payable to a person furnishing or producing the spectacle, whois exempted by section 237-23 from taxation upon such activity.

(c)  Where, through the activity of a persontaxable under section 237-13(6), a product has been milled, processed, orotherwise manufactured upon the order of another taxpayer who is a manufacturertaxable upon the value of the entire manufactured products, which consists inpart of the value of the services taxable under section 237-13(6), so muchgross income as is derived from the rendering of the services shall besubjected to tax on the person rendering the services at the rate of one-halfof one per cent, and the value of the entire product shall be included in themeasure of the tax imposed on the other taxpayer as elsewhere provided.

(d)  Where, through the activity of a persontaxable under section 237-13(6), there have been rendered to a cane planterservices consisting in the harvesting or hauling of the cane, or consisting inroad maintenance, under a contract between the person rendering the services andthe cane planter, covering the services and also the milling of the sugar, theservices of harvesting and hauling the cane and road maintenance shall betreated the same as the service of milling the cane, as provided by subsection(c), and the value of the entire product, manufactured or sold for the caneplanter under the contract, shall be included in the measure of the tax imposedon the person as elsewhere provided.

(e)  Where insurance agents, including generalagents, subagents, or solicitors, who are not employees and are licensedpursuant to chapter 431, or real estate brokers or salespersons, who are notemployees and are licensed pursuant to chapter 467, produce commissions whichare divided between such general agents, subagents, or solicitors, or betweensuch real estate brokers or salespersons, as the case may be, the tax leviedunder section 237-13(6) as to real estate brokers or salespersons, or undersection 237-13(7) as to insurance general agents, subagents, or solicitorsshall apply to each such person with respect to the person's portion of thecommissions, and no more.

(f)  Where tourism related services arefurnished through arrangements made by a travel agency or tour packager and thegross income is divided between the provider of the services and the travelagency or tour packager, the tax imposed by this chapter shall apply to eachsuch person with respect to such person's respective portion of the proceeds,and no more.

As used in this subsection "tourismrelated services" means catamaran cruises, canoe rides, dinner cruises,lei greetings, transportation included in a tour package, sightseeing tours notsubject to chapter 239, admissions to luaus, dinner shows, extravaganzas,cultural and educational facilities, and other services rendered directly tothe customer or tourist, but only if the providers of the services other thanair transportation are subject to a four per cent tax under this chapter orchapter 239.

(g)  Where transient accommodations arefurnished through arrangements made by a travel agency or tour packager atnoncommissioned negotiated contract rates and the gross income is dividedbetween the operator of transient accommodations on the one hand and the travelagency or tour packager on the other hand, the tax imposed by this chaptershall apply to each such person with respect to such person's respectiveportion of the proceeds, and no more.

As used in this subsection, the words"transient accommodations" and "operator" shall be definedin the same manner as they are defined in section 237D-1.

(h)  Where the transportation of passengers orproperty is furnished through arrangements between motor carriers, and thegross income is divided between the motor carriers, any tax imposed by thischapter shall apply to each motor carrier with respect to each motor carrier'srespective portion of the proceeds.

As used in this subsection:

"Carrier" means a person who engagesin transportation, and does not include a person such as a freight forwarder ortour packager who provides transportation by contracting with others, except tothe extent that such person oneself engages in transportation.

"Contract carrier" means a personother than a public utility as defined under section 239-2 or taxicab, whichunder contracts or agreements, engages in the transportation of persons orproperty for compensation, by land, water, or air.

"Motor carrier" means a commoncarrier or contract carrier transporting persons or property for compensationon the public highways, other than a public utility as defined under section239-2 or taxicab.

"Public highways" has the meaningdefined by section 264-1 including both state and county highways, butoperation upon rails shall not be deemed transportation on the public highways.[L 1949, c 252, §1; am L 1951, c 165, §4; am L 1953, c 68, §1; RL 1955,§117-16; am L 1957, c 34, §6; am L Sp 1957, c 1, §3(v), (w), (x); am L 1959, c257, §3; am L 1960, c 4, §6; am L 1963, c 87, §1; am L 1965, c 155, §14(1); HRS§237-18; am L 1970, c 180, §11; am L 1977, c 198, §1; am L 1978, c 144, §3; gench 1985; am L 1986, c 340, §7; am L 1988, c 167, §1; am L 1991, c 287, §1; gench 1992; am L Sp 2001 3d, c 9, §3; am L 2003, c 135, §4]

 

Attorney General Opinions

 

  Hauling contractor rendering services on behalf of anintermediary must report income at retail rate.  Att. Gen. Op. 64-9.

 

Case Notes

 

  Slaughterhouse operator, whose customers are wholesalers andproducers, is not a "manufacturer".  69 H. 125, 735 P.2d 935.