§237-44  Entertainment business.  (a) As used in this section:

(1)  "Admission" means the amount paid foradmission to any place, including admission by season ticket or subscription,and also includes the amount paid for seats and tables, reserved or otherwise,and other similar accommodations.

(2)  "Cabaret" means any roof garden,cabaret, or other similar place furnishing a public performance, by or for anypatron or guest who is entitled to be present during any portion of theperformance, including any room in any hotel, restaurant, hall, or other publicplace where music and dancing privileges or any other entertainment areafforded the patrons in connection with the serving or selling of food,refreshment, or merchandise.

(3)  "Transient taxpayer" refers to anyperson subject to the tax imposed by this chapter who has no permanent place ofbusiness in the State.

(b)  Every person receiving admissions for anycircus, carnival, or any other place whatsoever at which a transient taxpayeris engaged in business (whether or not further admissions are charged insidethe place, such further admissions, if any, being also subject to thissection), shall set aside from the admissions and hold in trust for the Statefive per cent of the admissions, or such lesser amount as the department oftaxation shall approve as sufficient, to guarantee payment of the tax levied bythis chapter on the transient taxpayer.  The amount so required to be set asidefrom the admissions shall be deposited with the department promptly uponcollection thereof, from time to time, for deposit by it in a special trustfund in the treasury of the State, there to remain until refunded upon voucherof the department, or until applied to the payment of the taxes guaranteedthereby with the consent of the person making the deposit, or until depositedin court pursuant to chapter 655 or the rules of court.  The department maybring an action to obtain an adjudication of its right to apply the guaranteefund in payment of taxes and may deposit the fund in court to await the resultsof the adjudication, or may be sued by an interested person seeking to obtainthe adjudication and may be ordered to make such deposit in court,notwithstanding that the department asserts a claim against the fund.

(c)  If any person fails to deposit promptlythe guarantee fund required by this section, the department may distrain uponthe admissions or any bank account or other asset in which the same can befound, for the purpose of obtaining and depositing in the treasury the requiredguarantee fund.

(d)  Whenever a transient taxpayer is engagedin business at any place for which admissions are charged, or at any cabaretwhether or not admissions are charged, the person engaging the transienttaxpayer shall collect from him, by withholding or otherwise, the tax levied bythis chapter on the transient taxpayer, shall hold the same in trust for theState, and shall return and pay over the same to the proper collecting officerof the State in the manner and at the time required by this chapter, for theaccount of the transient taxpayer; in the event of his failure to do so heshall be liable to pay to the State the amount of the tax levied by thischapter on the transient taxpayer, together with penalties and interest asprovided by law.  The amount of the liability may be collected from theguarantee fund, if any, or may be assessed against and collected from theperson so becoming liable in the same manner as if the tax had been levied uponhim. [L 1951, c 165, §6; am L 1953, c 68, §2; RL 1955, §117-41; am L Sp 19592d, c 1, §16; HRS §237-44; am L 1973, c 133, §8]