Report Title:

GET, Travel Agents, Commission

 

Description:

Adds travel agents as a category to persons who are liable for the GET only proportional to their proportion of the commission.

 

THE SENATE

S.B. NO.

581

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TRAVEL AGENTS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 237-18, Hawaii Revised Statutes, is amended by amending subsections (e) and (f) to read as follows:

"(e) Where [insurance]:

(1) Insurance agents, including general agents, subagents, or solicitors, who are not employees and are licensed pursuant to chapter 431[, or real];

(2) Real estate brokers or salespersons, who are not employees and are licensed pursuant to chapter 467[,]; or

(3) Travel agents,

produce commissions which are divided between such general agents, subagents, or solicitors[, or]; between such real estate brokers or salespersons[,]; or between travel agents, as the case may be, the tax levied under section 237-13(6) or [under section] 237-16 as to real estate brokers or salespersons, [or] under section 237-13(7) as to insurance general agents, subagents, or solicitors, or under section 237-18(f) as to travel agents, shall apply to each such person with respect to the person's portion of the commissions, and no more.

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

As used in this subsection ["tourism]:

"Tourism related services" means catamaran cruises, canoe rides, dinner cruises, lei greetings, transportation included in a tour package, sightseeing tours not subject to chapter 239, admissions to luaus, dinner shows, extravaganzas, cultural and educational facilities, and other services rendered directly to the customer or tourist, and commissions paid to a travel agency, but only if the providers of the services other than air transportation are subject to a four per cent tax under this chapter or chapter 239.

"Travel agency" means an agency that is registered as a travel agency under chapter 468L."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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