237D-1 HAWAII ADMINISTRATIVE RULES TITLE 18 DEPARTMENT … · 237D- 226 (Unofficial Compilation) 237D-1 HAWAII ADMINISTRATIVE RULES TITLE 18 DEPARTMENT OF TAXATION CHAPTER 237D TRANSIENT

TRANSIENT ACCOMMODATIONS TAX

237D- 226 (Unofficial Compilation)

237D-1HAWAII ADMINISTRATIVE RULES

TITLE 18

DEPARTMENT OF TAXATION

CHAPTER 237D

TRANSIENT ACCOMMODATIONS TAX

§18-237D-1-01 Definitions.§18-237D-1-02 “Fairmarketrentalvalue”,defined.§18-237D-1-03 “Grossrental”or“grossrentalproceeds”,defined.§18-237D-1-04 “Occupant”,defined.§18-237D-1-05 “Operator”,defined.§18-237D-1-06 “Transient”,defined.§18-237D-1-07 “Transientaccommodations”,defined.§18-237D-2-01 Impositionandrates.§18-237D-3-01 Exemptions.§18-237D-4-01 Certificateofregistration.§18-237D-4-02 Displayoftheregistrationcertificate.§18-237D-4-03 (Repealed.)§18-237D-4-04 (Repealed.)§18-237D-4-05 (Repealed.)§18-237D-4-06 (Repealed.)§18-237D-4-07 (Repealed.)§18-237D-4-08 Displayoflocalcontactinformation.§18-237D-4-09 Procedures;scopeandpurpose.§18-237D-4-10 Definitions.§18-237D-4-11 Fineforfailuretodisplay.§18-237D-4-12 Writtenwarningforfirstviolationundersection237D-4(d),HRS.§18-237D-4-13 Citationforfailuretodisplay;requirements.§18-237D-4-14 Issuanceofacitationforfailuretodisplay.§18-237D-4-15 Responsetocitationforfailuretodisplay.§18-237D-4-16 Venue.§18-237D-4-17 Docket.§18-237D-4-18 Hearing;requestforandscheduling.§18-237D-4-19 Presidingofficerofhearings;dutiesandpowers;substitutepresiding

officers.§18-237D-4-20 Disqualificationofpresidingofficers.§18-237D-4-21 Communicationswiththedirectororpresidingofficers.§18-237D-4-22 Computationoftime.§18-237D-4-23 Filingofdocuments;amendment;dismissal;retention§18-237D-4-24 Fileddocumentsavailableforpublicinspection;exceptions.§18-237D-4-25 Appearancesinagencyappeal.§18-237D-4-26 Substitutionofparties.§18-237D-4-27 Consolidation;separatehearings.§18-237D-4-28 Intervention.§18-237D-4-29 Prehearingconferences;exchangeofexhibits;briefs.§18-237D-4-30 Motions.§18-237D-4-31 Evidence.§18-237D-4-32 Continuancesorextensionsoftime.§18-237D-4-33 Serviceofdecisions.§18-237D-4-34 Correctionoftranscript.

TRANSIENT ACCOMMODATIONS TAX §18-237D-1-02


§18-237D-4-35 Enforcementandstay.§18-237D-5-01 (Repealed.)§18-237D-6-01 Returnandpayments.§18-237D-6-02 Remittances.§18-237D-6-03 Penalties.§18-237D-7-01 Annualreturn.§18-237D-7-02 Shortyearreturn;changeofownershiporcessationofbusiness.§18-237D-8-01 Filingofreturns.§18-237D-8-02 (Reserved.)§18-237D-8.5-01 (Reserved.)§18-237D-8.6-01 Reconciliation;formrequirement.§18-237D-9-01 Assessmentuponfailuretomakereturn;limitationperiod;extension

byagreement.§18-237D-10-01 (Reserved.)§18-237D-11-01 (Reserved.)§18-237D-12-01 Recordstobekept;examination;penalties.§18-237D-13-01 (Reserved.)§18-237D-14-01 (Reserved.)§18-237D-15-01 Applicationoftax.§18-237D-16-01 (Reserved.)§18-237D-17-01 (Reserved.)

This is an unofficial compilation of the Hawaii Administrative Rules.

§18-237D-1-01 Definitions.Asusedinthischapter:“Department”meansthedepartmentoftaxation.“Director”meansthedirectoroftaxation.[Eff11/25/88](Auth:HRS§231-3(9),237D-16(b))(Imp:

HRS§237D-1)

§18-237D-1-02 “Fair market rental value”, defined.Asusedinthischapter,“fairmarketrentalvalue”meansanamountequaltoone-halfthegrossdailymaintenancefeesthatarepaidbytheowner,areattributabletothetimeshareunit,andincludemaintenancecosts,operationalcosts,insurance,repaircosts,administrativecosts,taxes,otherthantransientaccommodationstaxes,andothercostsincludingpaymentsrequiredforreservesorsinkingfunds.Thetaxpayershallusegrossdailymaintenancefees,unlessthetaxpayerprovesorthedirectordeterminesthatthegrossdailymaintenancefeesdonotfairlyrepresentfairmarketrentalvaluetakingintoaccountcomparabletransientaccommodationrentalsorotherappraisalmethods.

Example 1. A,atimeshareintervalowner,pays$700annuallyinmaintenancefeesforatimeintervalperiodofsevendays.Thedailyfairmarketrentalvalueiscalculatedasfollows:

(1) Dividetheannualmaintenancefeesforthetimeintervalperiodbysevendaystoobtainthegrossdailymaintenancefee($700÷7days=$100).

(2) Dividethegrossdailymaintenancefeebytwotoobtainone-halfthegrossdailymaintenancefee($100÷2=$50).

Todeterminethetotalfairmarketrentalvaluefortheintervalperiod,thedailyfairmarketrentalvalueismultipliedbyseven(thenumberofdaysthattheresorttimesharevacationunitisoccupiedbythetimeshareintervalownerorbysomeotherpersonbutnotrented).

Example 2. AssumethesamefactsasinExample1,exceptthatAonlyoccupiedtheresorttimesharevacationunitforfivedays.Todeterminethetotalfairmarketrentalvalue,thedailyfairmarketrentalvalueismultipliedbyfivedays(thenumberofdaysthattheunitwasoccupied).

Example 3. B,atimeshareintervalowner,hasatimeintervalperiodoffourteendays.Boccupiedtheresorttimesharevacationunitforsevendaysandinviolationoftherulesofthetimesharevacationplan,rentedtheremainingseven-dayperiodtosomeoneelse.Theplanmanagerisliableforthetransientaccommodationstaxonthedailyfairmarketrentalvalueoftheunitforthefourteendays.Bisnotliableforthetransientaccommodationstax.

HRS §237D-1

§18-237D-1-03 TRANSIENT ACCOMMODATIONS TAX


Example 4. C,atimeshareintervalowner,hasatimeintervalperiodofsevendays.CwaschargedanadditionalamountbyXfortherentaloftheunitforthreeadditionaldays.AlthoughCoccupiedtheunitfortendays,thedailyfairmarketrentalvaluewouldbemultipliedbysevendaystoobtainthetotalfairmarketrentalvaluethatissubjecttothetransientaccommodationstaxontimeshareoccupancy.XissubjecttothetransientaccommodationstaxandthefourpercentgeneralexcisetaxonthegrossrentalincomereceivedfromCforthethreeadditionaldays.XmayvisiblypassonthesetaxestoC.

Example 5. D,atimeshareintervalowner,hastherighttouseatwo-bedroom,two-bathunitforsevendays.Doccupiedtheunitforthesevendays;however,insteadofusingthewholeunit,Ddecidedtouseonlyonebedroomandonebath.Therestoftheunit(onebedroomandonebath)was“lockedout”andDcanbankthisbalanceanduseitanothertime.Dwillnotbesubjecttothetransientaccommodationstaxontheoccupancyofthewholeunit.Theportionoftheunitwhichwas“locked-out”wouldnotbeincludedinthetotalfairmarketrentalvaluesubjecttothetransientaccommodationstaxontimeshareoccupancy.Thisallocationmaybebasedontheratioofthesquarefootageofthe“lockedout”portiontothetotalsquarefootageofthewholeunit.[Eff6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-1)

§18-237D-1-03 “Gross rental” or “gross rental proceeds”, defined.(a)Ingeneral.Asusedinthischapter,“grossrental”or“grossrentalproceeds”meansthegrossreceipts,cashoraccrued,ofthetaxpayerreceivedascompensationforthefurnishingoftransientaccommodationsandthevalueproceedingoraccruingfromthefurnishingoftransientaccommodationswithoutanydeductionsforthecostofpropertyorservicessoldorofmaterialsused,laborcost,taxes,royalties,interest,discounts,oranyotherexpenseswhatsoever.

(b) Includedingrossrentalorgrossrentalproceeds.Grossrentalorgrossrentalproceedsincludethefollowing:

(1) TransientaccommodationstaxesfortransientaccommodationsfurnishedbeforeJuly1,1990,thatarevisiblypassedonandcollectedfromtheconsumer;and

(2) Commissionspaidtotravelagents.

Example 1.Hawaii,Inc.ownsacondominiumapartmentinWaikikiwhichisusedfortheactivityoffurnishingtransientaccommodations.Hawaii,Inc.charges$150adayfortherentalofthecondominiumapartment.Mr.TouriststaysatthecondominiumapartmentforthreenightsbeginningonJune1,1990.Mr.Touristdoesnotincuranychargesforfood,beverage,laundry,telephone,oranyotherguestamenities.Hawaii,Inc.addsfivepercentofthetotalroomchargeof$450,or$22.50,asaseparateitemonMr.Tourist’sbill.Mr.TouristpaysHawaii,Inc.$472.50uponcheckingout.The$450representsgrossrentaltoHawaii,Inc.

BecausethistransactionoccurredbeforeJuly1,1990,grossrentalalsoincludesthe$22.50visiblypassedontoMr.Touristasaseparatechargeonhisbill.ThetransientaccommodationstaxtobepaidtotheHawaiiStateTaxCollectorisfivepercentof$472.50,or$23.63.Hawaii,Inc.shallreportasthegrossrentalsubjecttothetransientaccommodationstax$472.50.

Example 2.Hawaii,Inc.offerstravelagentsthatbookguestsintoitscondominiumapartmenta10percentcommissionbaseduponthecondominiumapartment’sdailyrateof$200.Hawaii,Inc.collects$200andremitsthe$20commissiontothetravelagent.Becausecommissionsareanondeductiblecost,thegrossrentalis$200.

Example 3.Hawaii,Inc.offerstravelagentsthatbookguestsintoitscondominiumapartmenta10percentcommissionbaseduponthecondominiumapartment’sdailyrateof$200.Thetravelagentcollects$200fromtheguest,withholdsthe$20commission,andremitstheremaining$180toHawaii,Inc.Hawaii,Inc.isrequiredtoincludeinitsgrossrentalthe$20commissionwithheldbythetravelagent.Thegrossrentalis$200.

Example 4.Hawaii,Inc.expectsaslowsalesperiodandbeginstooffercondominiumapartmentsataspecialrateof$180adayduringthisslowperiod.Thecondominiumapartmentsnormallyrentfor$200.Asanaddedincentivetothetravelagent,Hawaii,Inc.offersaspecial15percentcommissionratetotravelagentsbaseduponthespecialrateof$180.Hawaii,Inc.is



requiredtoincludethetravelagents’commissionsinitsgrossrentalasanondeductiblecostandisrequiredtopaythetransientaccommodationstaxuponthe$180specialrate.

(c) Excludedfromgrossrentalorgrossrentalproceeds.Excludedfromgrossrentalorgrossrentalproceedsarethefollowing:

(1) Generalexcisetaxeswhicharevisiblypassedontoandcollectedfromtheconsumer;(2) TransientaccommodationstaxesfortransientaccommodationsfurnishedafterJune30,

1990,whicharevisiblypassedontoandcollectedfromtheconsumer;(3) Chargesforguestamenities,includingmeals,beverages,telephonecalls,andlaundry;(4) Servicecharges;(5) Forfeiteddeposits;and(6) Insuranceproceedsreceivedforbusinessinterruptionlosses.

Example 1. Ms.LandlordrentsacondominiumsheownstoMr.andMrs.Touristfor$500forthemonthofJuly,1999.Thereisaflatchargeof$500,andtherearenoseparatelystatedchargesforthegeneralexcisetaxorthetransientaccommodationstax,onMs.Landlord’sbillingtotheTourists.Ms.Landlord’sgeneralexcisetaxliabilityisfourpercentof$500,or$20,andhertransientaccommodationstaxliabilityis7.25percentof$500,or$36.25.

Example 2. ParadiseHotelcharges$50adayforrentalofahotelroomasatransientaccommodation.Mr.TouriststaysatthehotelforthreenightsbeginningJanuary1,1999.Hawaii,Inc.adds7.25percentofthetotalroomchargeof$150,or$10.87,fortransientaccommodationstax,andfourpercentofthe$150,or$6,forgeneralexcisetax,asseparateitemsonMr.Tourist’sbill.Mr.TouristpaysHawaii,Inc.$166.87whenhechecksout.BecauseParadisevisiblypassedonbothtaxesbyseparatelystatingthemandcharging$166.87,bothtaxesareexcludedfromgrossrental.ThetransientaccommodationstaxtobepaidafterJanuary1,1999,is7.25percentof$150,or$10.87.

Example 3. ParadiseHotelalsorentsasimilarroomtoMs.Mainland,afriendofMr.Tourist,inJanuary1999.Inadditiontoherroomchargesof$150,Ms.Mainlandincurschargesof$100forfood,$75forbeverages,$10fortelephonecalls,and$15forlaundry.Allchargestotal$350.Paradisecomputesitstransientaccommodationstaxbyapplyingthe7.25percentrateonlyupontheroomchargesof$150.Paradise’stransientaccommodationstax,therefore,is$10.87.

IfParadisevisiblypassesonandcollectsthe$10.87fromMs.Mainlandandcharges$160.87fortheroom,thetransientaccommodationstaxtobepaidtotheHawaiiStateTaxCollectoris7.25percentof$150,or$10.87.

Assumethatallofthechargesconstitutegrossincomeforpurposesofchapter237,HRS,thegeneralexcisetaxlaw.Theamountoftransientaccommodationstaxvisiblypassedonandcollectedisnotincludedingrossincomeundersection237-24.3(8),HRS,buttheamountofgeneralexcisetaxvisiblypassedonisincludedingrossincome.Thus,ifParadise,inadditiontothe$10.87transientaccommodationstax,addsfourpercentofthetotalchargesof$350,or$14,toMs.Mainland’sbillandchargesatotalof$374.87,Paradise’sgrossincomesubjecttothegeneralexcisetaxis$374.87minus$10.88,or$364.ThetaxtobepaidbyParadisetotheHawaiiStateTaxCollectorisfourpercentof$364,or$14.56ofgeneralexcisetax,plus$10.87oftransientaccommodationstax,foratotalof$25.43.

Example 4. ParadiseHotelrentsaroomtoMs.MainlandonJanuary1,1999,undertheAmericanPlanandchargesMs.Mainland$200.Tocomputethetransientaccommodationstax,ParadiseshalldeductthecostofmealsfromthetotalpricechargedMs.Mainland.Ifthecostreasonablyattributedtomealsis$50,thenthecostoftheroomis$150.

ParadisevisiblypassesthegeneralexcisetaxandthetransientaccommodationstaxontoMs.Mainland,sothatthetotalchargetoMs.Mainlandis$218.87comprisedofthe$200charge,$8forgeneralexcisetaxonthe$200,and$10.87fortransientaccommodationstaxonthe$150.ParadiseistopaytheHawaiiStateTaxCollectorfourpercentof$208or$8.32ofgeneralexcise

HRS §237D-1



tax,and7.25percentof$150or$10.87oftransientaccommodationstax.Thetotaltaxpayableis$19.19.

Example 5. ParadiseHotelacceptsanadvancedepositof$100fromMs.Mainlandtoconfirmherroomreservation.Ms.Mainlanddoesnotshowupandforfeitsthe$100deposit.The$100istreatedasaforfeiteddepositandisnotsubjecttothetransientaccommodationstaxbecauseitisexcludedfromgrossrental.The$100,however,issubjecttothegeneralexcisetax.

(d) Specialdailyrate.Grossrentalorgrossrentalproceedsistheamountchargedandcollected,whichmaybedeterminedunderakama’aina,governmental,military,corporate,hotelemployee,seniorcitizen,oraseasonalrate,orunderawrittencontractonanoncommissionablenegotiatedrate.

Example 1.ParadiseHotelentersintoanegotiated,writtencontractualagreementwithAlohaTours,atourpackager,inwhichthehotelagreestoprovidethetourpackagerwithroomsatacontractedrateof$90aroomperday.Theroomscontractedfornormallysellfor$100.ThecontractspecificallystatesthatnocommissionistobepaidbyParadisetoAlohaToursandinfactnocommissionispaidbyParadiseorcollectedbyAlohaToursfromthetourists.Thearrangementistreatedasacontractrate.Paradiseistopaythetransientaccommodationstaxandthegeneralexcisetaxonthe$90specialrateestablishedinthewrittencontractwithAlohaTours.

Example 2.ParadiseHotelentersintoanegotiated,writtencontractualagreementwithXYZAssociationforaspecialdailyroomrateof$90fortheAssociation’smemberswhoattenditsannualconvention.Theseroomsnormallysellfor$100.ThecontractspecificallystatesthatnocommissionistobepaidbyParadisetoXYZAssociation,andinfactnocommissionispaidbyParadise.Thearrangementistobetreatedasaspecialrate,andParadiseistopaythetransientaccommodationstaxandthegeneralexcisetaxonthe$90specialrate.

Example 3.XYZHotelofferskama’ainaratesforlocalresidents.Inthetypicalsituation,alocalresidentregisterswiththehotelwithproofofHawaiiresidencyandisallowedakama’ainarateof10percentoffthestateddailyroomrate.Ifaroomusuallyrentsfor$100perday,thelocalresidentischarged$90.XYZ’sgrossrentalis$90,andXYZmustpaythetransientaccommodationstaxonthisamountbecausethekama’ainaraterepresentsthegrossrentalchargedandcollectedwhichissubjecttothetransientaccommodationstax.XYZisalsosubjecttofourpercentgeneralexcisetaxonthegrossincomeof$90.

Example 4.XYZHotelofferstravelagentsthatbookguestsintoitshotela$10commission.Inthisexample,thelocalresidentinExample3bookshotelaccommodationswithXYZHotelthroughAlohaTravelAgencyratherthandirectlywiththehotel.Thelocalresidentwouldbealloweda10percentdiscountedkama’ainarateandcharged$90foraroomwhichwouldcustomarilybeletfor$100.AlohaTravelcollectsthe$90fromthelocalresident,deductsa$10commission,andremitstheremaining$80toXYZHotel.XYZHotelisrequiredtorecordonitsbooksthefull$90kama’ainarate,andpaythetransientaccommodationsandgeneralexcisetaxesuponthisamount.ThecommissionpaidtoAlohaTravelisnotanamountexcludablefromgrossrental.Seealsosubsection(b)(2)above.

(e) Deductionsfromgrossrentalorgrossrentalproceeds.(1) Deductionsallowed.Adeductionfromgrossrentalmaybetakenforaccountsfoundtobe

worthlessandactuallychargedoff.Accountssubsequentlycollectedshallbeincludedingrossrentaluponcollection.Thetreatmentofworthlessaccountsunderthisparagraphshallbethesameasthetreatmentofworthlessaccountsunderchapter237,HRS.

(2) Deductionsdisallowed.Anydeductionnotexpresslyprovidedinparagraph(1)shallbedisallowed.Deductionsdisallowedincludethefollowingexpensespaidinconnectionwiththefurnishingoftransientaccommodations:(A) Laborcost;(B) Commissions;(C) Taxes,otherthangeneralexcisetaxesortransientaccommodationstaxesasprovided

insubsection(c)(1)and(2);(D) Royalties;



(E) Interest;and(F) Anyotherexpenseswhatsoever,suchascostsoffurnishingtheservice,oroverhead.

(f) Determinationofgrossrentalorgrossrentalproceedswheretransientaccommodationsareprovidedaspartoftourpackages.

(1) Iftransientaccommodationsarefurnishedthrougharrangementsmadebyatravelagencyortourpackagerforacommission,thegrossrentalorgrossrentalproceedstotheoperatorincludesthecommissionpaidtothetravelagencyorthetourpackager.Seealsosubsection(b)(2).

Example.RenterCorporationleasesanentirebuildingsituatedonMauifromtheownersoftheKaanapaliBeachCondominiumandoperatesthecondominiumapartmentsastransientaccommodations.RenterCorporationoffersAlohaTravel,atouragencywhichbooksguestsintothecondominiumapartment,a15percentcommissionbaseduponthedailyrateof$175.AlohaTravelcollectsthe$175,deductsthe$26.25commission,andremitstheremaining$148.75toRenterCorporation.AlthoughRenterCorporationactuallyreceivesonly$148.75,RenterCorporationisrequiredtorecordasgrossrentaluponitsbooksthefull$175,whichincludesthecommissionwithheldbyAlohaTravel,andtopaytransientaccommodationstaxesuponthatamount.

(2) Iftransientaccommodationsarefurnishedthrougharrangementsmadebyatravelagencyortourpackageratnoncommissionable,negotiatedcontractrates,andthegrossreceiptsaredividedbetweentheoperatorofthetransientaccommodationsandthetravelagencyortourpackager,thegrossrentalorgrossrentalproceedstotheoperatorshallbethenoncommissionednegotiatedcontractrate.

Example 1.HawaiiTravelAgencyputstogetherafly-drivepackagefortraveltoMolokaiwhichconsistsofairfare,hotelaccommodations,andcar.Thehotelaccommodationsareprovidedthroughanegotiated,writtenagreementbetweenHawaiiTravelandtheMolokaiSurfHotel.Basedonthisagreement,theMolokaiSurfprovideshotelroomswhichusuallyarerentedatarateof$60atacontracted,reducedrateof$50.TheagreementspecificallystatesthatnocommissionistobepaidbyMolokaiSurftoHawaiiTravel,andinfactnocommissionispaidbyMolokaiSurf.Thetotalfly-drivepackagesellsfor$100.Foreachpackage,HawaiiTravelremits$50ofthe$100totalcollectedforthepackagetotheMolokaiSurf.TheMolokaiSurfreceivesandbooksthe$50paymentforeachroom.ThegrossrentalallocatedtoMolokaiSurfinthissituationforeachroomprovidedunderthistravelpackageis$50,andMolokaiSurfisrequiredtopaytransientaccommodationstaxuponthatamount.

Example 2.MainlandTravelhasatourpackagewhichprovidesairfare,acondominiumapartmentforsevennights,groundtransportation,andluaufor$1,500.MainlandTravelnegotiatesawrittenagreementwithWaikikiBeachApartmentstoprovidethesevennightsaccommodationsinacondominiumapartmentatarateof$700insteadoftheregularrateof$840.TheagreementspecificallystatesnocommissionistobepaidtoMainlandTravelbyWaikikiBeach,andinfactnocommissionispaidbyWaikikiBeach.WaikikiBeachmustrecordthe$700itreceivesforeachpackageasgrossrental,andpaythetransientaccommodationstaxuponthe$700.

(3) Iftheoperatoractsasatravelagentortourpackagerandthegrossincomeisdividedbetweenthetransientaccommodationsandothercomponentsofthetravelpackage,then:(A) Grossrentalorgrossrentalproceedsforthefurnishingofthetransient

accommodationsshallbedeterminedbyanallocationbaseduponthefairmarketvalueoftheaccommodationsorotherreasonableallocationapprovedbythedirector.

(B) ThemethodofcalculatingtheamountsubjecttothetransientaccommodationstaxshallbeasfollowswhereFMV=FairMarketValue:FMVofthetransientaccommodationsdividedbytheFMVofallofthecomponentsinthetravelpackage(includingtheFMVoftheaccommodations)multipliedbythetotalsalespriceofthepackageequalstheamountallocatedtothetransientaccommodationswhichissubjecttothetransientaccommodationstax.Thisisrepresentedbythefollowingformula: FMVofTA

FMVofcomponents x PackagePrice=GrossRental



(C) Indeterminingthefairmarketvalueofthetransientaccommodationsandofthecomponentsinatravelpackage,thefollowingprinciplesshallapply:(i) Wherethegrossincomeisdividedbetweentheoperatorandanindependent

vendorandwhereboththeoperatorandtheindependentvendorinadditiontosellingthecomponentsinthetravelpackagealsosellthesecomponentsindividually,thefairmarketvalueofeachcomponentshallbethefairmarketpriceofthecomponentwhensoldindividually.

(ii) Wherethegrossincomeisdividedbetweentheoperatorandanindependentvendorandwheretheindependentvendordoesnotsellthecomponentsindividually,thefairmarketvalueofeachcomponentshallbedeterminedbythecomparablesalespriceofsimilarcomponentssoldbyothervendorsasdeterminedbythedepartment.

(iii) Wheretheoperatorputstogetherapackageandprovidesallthecomponentsofthepackageandthegrossincomeisdividedbetweenthetransientaccommodationsandothercomponents(suchaswhereanoperatorprovidesapackageofhotelaccommodationsandmealsandtheoperatorownsboththehotelandtherestaurant),thefairmarketvalueofeachcomponentshallbedeterminedeitherby:thefairmarketpriceofthecomponentifthecomponentisalsosoldindividually;orthecomparablesalespricesofsimilarcomponentssoldbyothervendorsasdeterminedbythedepartmentifthecomponentsarenotsoldindividually.

Example 1.ABCHotelputstogetheraneighborislandpackageconsistingofairfare,hotelroom,andcarforaday.Thecomponentsofthepackageareprovidedbyindependentvendorswhosellthecomponentsindividually.Purchasedindividually,theroundtripairfaretotheselectedislandcosts$75,thehotelroomattheABCHotelcosts$50,andthecarrentalcosts$20.Thetotalcomponentspurchasedindividuallywouldcost$145.ABCHotelsellsthepackagetocustomersfor$130.Theamountallocatedtothetransientaccommodationsandsubjecttothetransientaccommodationstaxisdeterminedasfollows:

FMVofTA $50 FMVofcomponents x PackagePrice=$145 x $130=$44.83

Example 2.ABCHotelputstogetherapackageconsistingofhotelaccommodations,helicopterride,andluau.Thehotelaccommodationsifsoldindividuallycost$50.Thehelicopterrideandtheluauareprovidedbyindependentvendorswhodonotselltheircomponentsindividually.Thedepartmentfindsthatacomparablehelicopterridefromotherhelicoptercompaniescosts$100,andacomparableluaufromotherluaucompaniescosts$15.Thus,thefairmarketvalueofthecomponentsis$50+$100+$15=$165.Thepackageisbeingsoldtocustomersfor$150.Theamountallocatedtothetransientaccommodationsandsubjecttothetransientaccommodationstaxisdeterminedasfollows:


Example 3.ABCHotelalsohasanAmericanplanpackagewhichconsistsofhotelaccommodationsandamealallowanceatarestaurantownedbythehotel.Ifpurchasedindividually,thehotelaccommodationscost$250andthemealscost$140.Thedepartmentdeterminesthatthesepricesarefairmarketprices.Thus,thefairmarketvalueofthecomponentspurchasedindividuallyis$390.ABCHotelsellsthetotalpackagetocustomersfor$320.Theamountallocatedtothehotelaccommodationsandsubjecttothetransientaccommodationstaxisdeterminedasfollows:


[Eff11/25/88;am7/18/94;§18-237D-1-02;amandren6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237-24.3(8),237D-1)



§18-237D-1-04 “Occupant”, defined. Asusedinthischapter,“occupant”meansanownerofaresorttimesharevacationplan,orotherpersonoccupyingtheresorttimesharevacationunit.

Example 1.E,atimeshareintervalowner,hasatimeintervalperiodofsevendays.E,however,didnotoccupytheresorttimesharevacationunitbutallowedafriendtooccupyitfortheentiresevendaysatnocost.Eisanoccupant,regardlessofthefactthatE’sfriendoccupiedtheunitatnocost.

Example 2.F,atimeshareintervalowner,hasatimeintervalperiodofsevendays.Foccupiestheunitfortwodays,thenallowsafriendtooccupyitfortheotherfivedaysatnocost.BothFandF’sfriendareoccupants.[Eff6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237-24.3(8),237D-1)

§18-237D-1-05 “Operator”, defined.(a)Ingeneral.Anoperatorisanyowner,proprietor,lessee,sublessee,mortgageeinpossession,licensee,oranyotherpersonwhoisengagedinthebusinessofactuallyfurnishingtransientaccommodations.Forthepurposesofthetaximposedbythischapter,however,anoperatorshallbedeemedsynonymouswiththepersonwhoisorshouldbelicensedandrequiredtopaythegeneralexcisetaximposedupongrossincomeorgrossreceiptsderivedfromtheactualfurnishingoftransientaccommodations.

(b) Applicationtotravelagents.Traditionally,atravelagentdoesnotactuallyfurnishtransientaccommodations.Forthepurposesofthischapter;therefore,atravelagentshallnotbeconsideredanoperatorunlessthetravelagentactuallyfurnishestransientaccommodations.

(c) Examples.Subsections(a)and(b)areillustratedasfollows:

Example 1.Mr.Paulownsthreeapartmentunitsandisengagedintheactivityoffurnishingtransientaccommodations.Asownerandoperator,Mr.Paulisliableforthetaximposedbythischapter.

Example 2.ThefactsarethesameasinExample1,exceptthatMr.PaulengagesXYZCorporation,afirmengagedinthepropertymanagementbusiness,tomanageandrentouttheapartmentunits.AlthoughtheapartmentsaremanagedandrentedoutbyXYZCorporation,astheownerandoperator,Mr.Paulisliableforthetaximposedbythischapter.

Example 3.HotelCorporationleasesfora55-yearperioda300-unitapartmentcomplexfromLandCorporation.HotelCorporationoperatestheapartmentcomplexasa“hotel”.Asthelesseeandoperator,HotelCorporationisliableforthetaximposedunderthischapter,andthegeneralexcisetaximposedunderchapter237,HRS,onthegrossrentalorgrossrentalproceedsderivedfromthetransientaccommodationsandapartmentrentalactivities,respectively.Aslessor,LandCorporationissubjecttothegeneralexcisetaximposedunderchapter237,HRS,onthegrossincomeorgrossreceiptsderivedfromtheactivityofleasingtheapartmentcomplextoHotelCorporation.[Eff11/25/88](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-1)

§18-237D-1-06 “Transient”, defined.(a)A“transient”isanypersonwhostaysforonlyashortandtemporaryperiod,suchasapersonwhocomesandgoeswithonlyabriefstop.Atransientincludesbothresidentsandnonresidents.

(b) Individualsonamonth-to-monthleaseexcluded.Atransientdoesnotincludeanindividualrentingaroom,suite,orthelike,onamonth-to-monthlease,iftheindividual:

(1) Doesnothaveanothertrue,fixed,andpermanenthomeandprincipalestablishment;(2) Movesfromplacetoplacethroughtheuseofmonth-to-monthrentals;and(3) Establishesapermanenthomeandprincipalestablishmentateachplacewhichisrentedona

month-to-monthlease.Thisprovisionapplieseveniftheindividualterminatesalongtermrentalagreementbeforetheonehundred-eightydaysexpire.

Example 1.Gpermanentlyresidesinanapartment.AhurricanedamagedG’sapartmenttosuchanextentthatGcouldnotlivethere.Grentsanotherapartmentonamonth-to-monthbasisuntilG’sapartmentisrepairedandGcanmovebackin4months.TherentpaidbyGissubjecttothetransientaccommodationstaxbecausetheapartmentisG’stemporaryhomeforthatperiod.

HRS §237D-1

HRS §237D-1



Example 2.Afamily’shomeismadeunlivablebecauseofanaturaldisaster.Thehouselostitsroofandtheouterwallalongoneside.Thefamilyfindsacondominiuminaresortareathatisavailableforrentuntiltheirhomeisrepaired.Thecondominiumisusuallyrentedtovisitorsandisatransientaccommodation.Therentsreceivedaresubjecttothetransientaccommodationstaxbecausethecondominiumisbeingusedbythefamilytemporarilyuntiltheycanreturntotheirpermanenthome.

(c) “Domicile”,defined.Forthepurposesofthischapter,domicilemeansthesameasresidence.(d) “Resident”,defined.Residentshallbeasdefinedinsection235-1,HRS.(e) Residentstatus,determined.Residentstatusshallbeasdeterminedundersection235-1,HRS,and

therelevantadministrativerules.Seealsosection18-235-1.[Eff11/25/88;am7/18/94;§18-237D-1-04;amandren6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237-24.3(8),237D-1)

§18-237D-1-07 “Transient accommodations”, defined.(a)Ingeneral.“Transientaccommodations”meansthefurnishingofaroom,apartment,suite,orthelikewhichiscustomarilyoccupiedforlessthanone-hundred-eightyconsecutivedaysforeachlettingbyahotel,apartmenthotel,motel,condominiumpropertyregimeorapartmentasdefinedinchapter514A,HRS,cooperativeapartments,orroominghousethatprovideslivingquarters,sleeping,orhousekeepingaccommodations,orotherplaceinwhichlodgingsareregularlyfurnishedtotransientsforaconsideration.

(b) Applicablepresumptions.Iftheroom,apartment,orthelikeiscustomarilyoccupiedbytransientsandthehotelorcondominiumregularlyfurnishessuchaccommodationstotransients,thefollowingapply:

(1) Itshallbepresumedthataccommodationsaretransientaccommodationsiftheaccommodationsareletforaperiodoflessthanone-hundred-eightyconsecutivedays;and

(2) Nopresumptionappliesiftheaccommodationsareletforaperiodofone-hundred-eightyconsecutivedaysorlonger.

(3) Seesection18-237D-15-01forfurtherdiscussionoftheonehundred-eightydaypresumptionsetforthinsection237D-15(b),HRS.

(c) “Customarily”,defined.“Customarily”means:(1) Byvirtueofcommonusage,thehotelroom,apartment,suite,andthelikeisoccupiedfor

lessthanone-hundred-eightyconsecutivedays,suchasthefollowing:(A) Hotelroomswhicharecustomarilyrentedtoguestswhostayforshortperiodsoftime,

suchasperiodsofconsecutivedaysandnightswhicharegenerallylessthanaweek;or

(B) Condominiumapartmentswhicharecustomarilyrentedtoguestswhooccupytheapartmentsforlongerperiods,suchasthirtyconsecutivedaysormore.

(C) Theremaybesituationswhereahotelroomoracondominiumapartmentiscustomarilyrentedtotransients,butalsoisperiodicallyrentedformorethanone-hundred-eightyconsecutivedays.Forexample,ahotelroomorcondominiumwhichiscustomarilyrentedtotouristsforperiodsaveragingthirtydays,butattimesisrentedtoaconstructioncompanyfortemporaryhousingofitsemployees.ThistemporaryhousingmaylastforoneyearormorewheneverthecompanieshavejobsintheNeighborIslandsandhousingisrequiredtobeprovided.Whetherthehotel,condominium,orapartmentoperatorperiodicallyrentstheroom,apartment,orsuiteforone-hundred-eightyconsecutivedaysormoreshallnotchangeanaccommodationfromatransienttoanon-transientaccommodation.Fortheperiodinwhichthehotelorcondominiumisrentedforone-hundred-eightyconsecutivedaysorlonger,however,therevenuefromtherentalisnotsubjecttothetransientaccommodationstax.

(2) Example.Paragraph(1)isillustratedasfollows:

Duringthepast5years,ConvenientApartmentshasrenteditsapartmentstoCanadiantouristfamilieswhovacationinHawaii.Therentalperiodhasaveraged30consecutivedays.Fora1yearperiod,however,ConvenientApartmentsagreestorentallofitsapartmentstoABCConstructionCompanyforconstructionworkerswhoareinneedofhousingduringconstructionofaneighboringresorthotel.Basedonthesefacts,ConvenientApartmentsisnotliableforthetransientaccommodationstaxforthegrossrentalincomereceivedforthe1yearperiodtheaccommodationsarerentedtoABCConstructionCompany.Followingthis1yearperiod,ConvenientApartmentsagainreturnstoitspracticeofrentingtheapartmentsforperiodsranging

HRS §237D-1



from2to179consecutivedays.Inthissituation,ConvenientApartmentsisengagedinthebusinessoffurnishingtransientaccommodationsbecausetheapartmentsarecustomarilyoccupiedbytransientsforlessthan180consecutivedays,andtheapartmentsareregularlyfurnishedforaconsideration.TheapartmentsaretransientaccommodationseventhoughfortheperiodoftimeapartmentsarerentedtoABCConstructionCompany,therevenuefromsuchrentalisnotsubjecttothetransientaccommodationstax.

(d) “Regularly”,defined.“Regularly”meansthattheaccommodationissystematically,usuallybutnotnecessarilycontinuouslyorexclusively,rentedtotransients,suchasthefollowing:

(1) Hotelswhichusually,butnotexclusively,furnishroomstopeoplewhoonlystayforshortperiodsoftime;or

(2) Ahouseorapartmentrentedforaportionoftheyeartotransientsandwhichisrentedfortheremainderofeachyearformorethanonehundred-eightydaystoresidents.

(3) Example.Paragraphs(1)and(2)areillustratedasfollows:

EachyeartheownerofahouseontheNorthShoreofOahurentsthehousetoatouristfamilyforfourmonths.Therestoftheyear,theownerrentsthehouseformorethan180daystoHawaiiresidents.Thefactthattheownerrentsthehousetotransientsforaportionoftheyearmakesthehouseatransientaccommodationwhichisregularlyfurnishedtotransients.Thetransientaccommodationstax;therefore,istobepaidforeachperiodthehouseisrentedtotransients.ThereisnotransientaccommodationstaxforthetimeperiodthehouseisrentedtoHawaiiresidents.

(e) Applicationoftheone-hundred-eightyconsecutivedayrule.(1) Theone-hundred-eightydayruleshallbeappliedindeterminingthefollowing:

(A) Whethertheroom,apartment,suite,orsimilarfacilityfallswithinthedefinitionofatransientaccommodation;and

(B) Whethertherevenuederivedfromtheroom,apartment,suite,orsimilarfacilityissubjecttothetax.

(2) Ifitisdeterminedthatthefacilityfallswithinthedefinitionofatransientaccommodation,thenthenextdeterminationiswhetherornotthegrossrentalproceedsresultsfromtherentalofthefacilityforlessthanone-hundred-eightyconsecutivedays.Thelawcreatesapresumptionthatifafacilityisletforlessthanone-hundred-eightyconsecutivedays,theaccommodationisfurnishedforatransientpurpose.Ifthetaxpayerisabletoprovetothedirector’ssatisfactionthatthefacilityisnotletforatransientpurpose,thereshallbenotaximposed.Ifthefacilityisletforone-hundred-eightyconsecutivedaysormore,thereisnopresumptionandtheburdenofproofremainswiththetaxpayertoprovethatthefacilityisnotletforatransientpurpose.Seesection18-237D-15-01forfurtherdiscussion.

(f) Leaseofsixmonthsorlongerbrokenbeforeonehundred-eightydayshaveexpired.(1) Ingeneral.Whereatenantbreachesaleaseofonehundred-eightydaysorlongerbymoving

outbeforeonehundred-eightydayshaveexpired,theownermaynotbedeemedtobetheoperatorofatransientaccommodationinsofarasthisparticularfacilityisconcerned.

(2) Example.Paragraph(1)isillustratedasfollows:

Landlordentersintoaleaseof6monthsorlongerwithTenant.Tenantbreachestheleasebymovingoutafterlivingintheapartmentfor60days.Landlordisnotdeemedtobeanoperatoroftransientaccommodationsregardingthisparticularapartmentbecausetheleaseisforaperiodinexcessof180consecutivedays.

(3) Taxavoidancescheme.Ifthedepartmentfindsthatalandlordiscontinuouslyenteringintoleasesofsixmonthsorlongerandthetenantsarecontinuouslybreakingtheseleasesafteroneortwomonths,theburdenisuponthelandlordtoshowthattheoperationisnotataxavoidanceschemeandsubjecttothetransientaccommodationstax.

(g) Applicationtotimesharingplans.FortheperiodbeginningonJanuary1,1999,andthereafter,theoccupantofaresorttimesharevacationunitshallbesubjecttothetransientaccommodationstaxundersection237D-2(c),HRS.Everyplanmanagershallbeliableforandpaythetransientaccommodationstaxasprovidedundersection237D-2(d),HRS;providedthatiftheunitisrentedthetransientaccommodationstaxundersection



237D-2(c),HRS,isnotapplicableandtheoperatorofthetransientaccommodationsshallbeliableforthetransientaccommodationstaxasprovidedinsection237D-2(b),HRS.

Example.A,atimeshareintervalowner,hasuseofatimeshareunitinWaikikifortwoweeksatthebeginningofAugust.In1999,AoccupiestheunitforthetwoweeksinAugust.Theplanmanagerisliableforthetransientaccommodationstax.In2000,AexchangestheoccupancyoftheunitforthetwoweeksinAugustforoccupancyofatimeshareunitinCalifornia.For2000,Aisnotsubjecttothetransientaccommodationstax.Theplanmanager,however,shallbeliableforthetransientaccommodationstaxundersection237D-2(d),HRS,iftheunitisoccupied.Theplanmanagershallbeliableforthetransientaccommodationstaxundersection237D-2(b)iftheunitisrentedoutbytheplanmanager.

In2001,ArentsthetimeshareunitduringthetwoweeksinAugusttoMr.Touristforaconsideration.In2001,thetimeshareunitisbeingfurnishedasatransientaccommodationandtheplanmanagerisliableforthetransientaccommodationstaxforthetwoweeksundersection237D-2(d),HRS.Aisnotliableforthetransientaccommodationstax.

(h) Applicationofthetransientaccommodationstaxtogrossincomereceivedpursuanttoalong-termrentalagreement.Thetransientaccommodationstaxdoesnotapplytotransientaccommodationsthatareoccupiedbyapartypursuanttoalong-termrentalagreement(e.g.,over180consecutivedays)andusedbyitsemployeesasanintegralpartofconductingitsbusinessoperations.Apartyenteringintoalong-termrentalagreementwithanoperatorisnota“transient”undersection18-237D-1-06(a),becausethecontractingpartyisnotoccupyingthepremisesfora“shortandtemporaryperiod”,buthasagreedtorenttheaccommodationsforanextendedperiod.Thefactthatacontractingpartyallowsitsemployeestooccupythehotelroomsorapartmentsforashorterperiodoftimeisirrelevantbecausethecontractingpartyisconsideredtheoccupantoftheaccommodationsunderthelong-termrentalagreement.Inaddition,transientaccommodationsthatareoccupiedbyapartypursuanttoalong-termrentalagreementandusedbyitsemployeesasanintegralpartofconductingitsbusinessoperationsarenotbeingfurnishedforatransientpurpose.

Example 1.Anairlineentersintoaone-yearcontractwithahoteloperatortorentseveralroomsforusebyitscrewmemberswhoregularlylayoverinHawaii.Thetransientaccommodationstaxdoesnotapplytothegrossincomereceivedbythehoteloperatorbecausethehotelroomsareoccupiedbytheairlineforanextendedperiodoftimeandusedbytheairline’semployeesasanintegralpartoftheairline’sflightoperations.

Example 2.Aconstructioncompanyentersintoanine-monthcontractwiththeownerofanapartmentcomplextorentseveralunitstohouseitsemployeesatajobsite.Thetransientaccommodationstaxdoesnotapplytothegrossincomereceivedbytheowneroftheapartmentcomplexbecausetheapartmentsareoccupiedbytheconstructioncompanyforanextendedperiodoftimeandusedbytheconstructioncompany’semployeesasanintegralpartofconductingthecompany’sconstructionoperationsataparticularjobsite.

Example 3.Acorporationentersintoaone-yearcontractwithahoteloperatortorentseveralroomsforusebyitsemployeesaspartofitsbonus/incentiveplan.Thetransientaccommodationstaxdoesnotapplytothegrossincomereceivedbythehoteloperatorbecausethehotelroomsareoccupiedbythecorporationforanextendedperiodoftimeandusedbythecorporation’semployeesasanintegralpartofthecorporation’sbonus/incentiveplan.

Example 4.Atourwholesalerentersintoaone-yearcontractwithahoteloperatortorentablockofroomstoreselltoitscustomers.Thetransientaccommodationstaxappliestothegrossincomereceivedbythehoteloperatordespitethefactthatthehotelroomsareoccupiedbythetourwholesalerforanextendedperiod.Theaccommodationsarebeingfurnishedforatransientpurposebecausetheroomsarebeingresoldbythetourwholesalertoitscustomerswhowilloccupythehotelroomsforashortandtemporaryperiod,ratherthanoccupiedbythetourwholesaler’semployeesforsomepurposeintegraltoitsbusinessoperations.[Eff11/25/88;am7/18/94;§18-237D-1-05;amandren6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237D-1,237D-15)



§18-237D-2-01 Imposition and rates.Forthepurposesofthischapter,thereshallbeleviedandassessedandcollectedeachmonthataxof:

(1) 7.25percentonthegrossrentalorgrossrentalproceedsderivedfromfurnishingtransientaccommodationsduringtheperiodJanuary1,1999,andthereafter;or

(2) 7.25percentontheunit’s“fairmarketrentalvalue”fortheperiodbeginningonJanuary1,1999,andthereafter.Thetaxshallbeassessedandcollectedeachmonthontheoccupantofaresorttimesharevacationunit.Everytimeshareplanmanagershallbeliableforandpaytothedepartmentthetransientaccommodationstax.Ifatimeshareunitisrented,theplanmanagershallbeliableforthetransientaccommodationstaxontheunit’s“fairmarketrentalvalue”undersection237D-2(c)and(d),HRS.

Example.ABCHotel,engagedintheactivityoffurnishingtransientaccommodations,chargesandcollects$500fromatransient($100pernight).ThetransientcheckedinonDecember30,1998,andcheckedoutonJanuary4,1999.Thetransientaccommodationstaxisimposedat6percentforaccommodationsonthenightsofDecember30and31,anditisimposedat7.25percentforaccommodationsonthenightsofJanuary1,2,and3.Thetotaltaxdueis6percentof$200($12)plus7.25percentof$300($21.75)foratotalof$33.75intransientaccommodationstax.[Eff11/25/88;am7/18/94;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-2)

§18-237D-3-01 Exemptions.(a)Exemptedfromthischapterarethefollowing:(1) Healthcarefacilitiesincludinghospitals,freestandingsurgicaloutpatientfacilities,skilled

nursingfacilities,intermediatecarefacilities,adultresidentialcarehomes,adultfostercarehomes,specialtreatmentfacilitiesandprograms,homehealthagencies,freestandingbirthingfacilities,adultdayhealthcenters,andindependentgroupresidences.

(2) Schooldormitoriesofapublicorprivateeducationalinstitutionprovidingeducationingradeskindergartenthroughtwelve,orofanyinstitutionofhighereducation.

(3) Lodgingprovidedbynonprofitcorporationsorassociationsforreligious,charitable,oreducationalpurposes;providedthatthisexemptionshallapplyonlytotheactivitiesofthereligious,charitable,oreducationalcorporationorassociationassuchandnottoanyrentalorgrossrentaltheprimarypurposeofwhichistoproduceincomeeveniftheincomeisusedfororinfurtheranceoftheexemptactivitiesofsuchreligious,charitable,oreducationalcorporationorassociation.

(4) LivingaccommodationsforpersonsinthemilitaryonpermanentdutyassignmenttoHawaii,includingthefurnishingoftransientaccommodationstothosemilitarypersonnelwhoreceivetemporarylodgingallowanceswhileseekingaccommodationsinHawaiiorwhileawaitingreassignmenttonewdutystationsoutsidetheState.ThisexemptiondoesnotapplytotransientaccommodationsprovidedtopersonsinthemilitaryonpermanentdutyassignmentintheStateandwhohavetemporarilydepartedfromtheirpermanenthomesandprincipalestablishmentselsewhereinthisState.

Example.AcaptainintheUnitedStatesArmyrentsacondominiumunitinWaikikiforonemonthwhilelookingforpermanenthousinginHawaii.ThegrossincomereceivedbythehoteloperatorisnotsubjecttothetransientaccommodationstaxbecausethecaptainisseekinglivingaccommodationsinHawaii.

(5) Low-incomerentersreceivingrentalsubsistencefromthestateorfederalgovernmentsandwhoserentalperiodsarefordurationsshorterthansixtydays.

(6) Operatorsoftransientaccommodationswhofurnishaccommodationstofull-timestudentsenrolledinaninstitutionofferingpost-secondaryeducation.Thisexemptionshallalsoapplytooperatorswhofurnishtransientaccommodationstostudentsduringsummeremployment.

Example.ApineapplecompanyprovideslodgingtoemployeeswhotraveltoLanaitoworkinthepineapplefields.Duringthesummer,thepineapplecompanyemployshighschoolandcollegestudentstoworkinthefieldsonLanaiandprovideslodgingtothestudentsduringtheirperiodofsummeremployment.Althoughthelodgingprovidedbythepineapplecompanyisforaperiodoflessthan180days,thepineapplecompanyisnotsubjecttothetransient

HRS §237D-2

HRS §237D-3



accommodationstaxforsuchlodgingbecauseoperatorswhofurnishtransientaccommodationstostudentsduringsummeremploymentareexemptunderthelaw.

(7) Accommodationsfurnishedwithoutchargesuchas,butnotlimitedto,complimentaryaccommodations,accommodationsfurnishedtocontractpersonnelsuchasphysicians,golfortennisprofessionals,swimminganddancinginstructors,andotherpersonneltowhomnosalaryispaidortoemployeeswhoreceiveroomandboardaspartoftheirsalaryorcompensation.

(8) AccommodationsfurnishedtoforeigndiplomatsandconsularofficialswhoareholdingcardsissuedorauthorizedbytheUnitedStatesDepartmentofStategrantingthemanexemptionfromstatetaxes.

Example.TheConsulGeneralofAustraliaisinHawaiiforofficialbusinessandrentsahotelroominWaikikiforoneweek.TheConsulGeneralholdsacardissuedbytheUnitedStatesDepartmentofStategrantinganexemptionfromstatehoteltaxes.Thegrossincomereceivedbythehoteloperatorwillnotbesubjecttothetransientaccommodationstax.

(b) Accommodationsfurnishedtotransientswhopresentcardsorcertificatesstatingthattheholderisexemptedfromstatehotelroomtaxesareneverthelesstransientaccommodationsandtheiroperatorsaresubjecttothetaxexceptasprovidedinchapter237D,HRS,andtheserules.

(c) Thereisnotransientaccommodationstaxexemptionforgrossincomereceivedbyanoperatorfortherentaloftransientaccommodationstoanonmilitaryemployeeofthefederalgovernmentoranemployeeofastategovernment.

Example.AnemployeeoftheUnitedStatesDepartmentoftheInteriorisinHawaiiforofficialbusinessandrentsahotelroominWaikikiforoneweek.Thegrossincomereceivedbythehoteloperatorissubjecttothetransientaccommodationstaxbecausethereisnotransientaccommodationstaxexemptionforrentingtransientaccommodationstoanon-militaryemployeeofthefederalgovernment.

(d) Thedirectorshalldeterminethesufficiencyoftheproofnecessaryfortheapplicationoftheexemptionssetforthinsubsection(a).Thenecessaryproofincludesthefollowing:

(1) Toqualifyforanexemptionundersubsection(a)(4)theoperatorshallrequirethatthepersoninthemilitaryonpermanentdutyassignmentpresentthefollowingatthetimeofcheck-in:(A) Anidentificationcardwithaserialnumberwhichverifiestheperson’smilitarystatus;

and(B) Acopyoftheorderspreparedbythemilitaryorganizationverifyingtheperiodfor

whichthetemporarylodgingallowanceisreceived. Theoperatorshallmaintaincopiesofdocumentssupportinganyclaimforanexemption

underthisparagraphforthreeyears.(2) Toqualifyforthefull-timestudentenrollmentexemptionofsubsection(a)(6)theoperator

shallrequirethestudenttosubmitproofsignedbytheregistrarorotherauthorizedagentofthepost-secondaryinstitutioncertifyingthefull-timeenrollmentofthestudentforeachschoolsemester.Forthepurposeofthisparagraph,full-timeenrollmentisdefinedasfollows:(A) Foranundergraduatestudent:

(i) Twelvecreditsormorepersemester;or(ii) Sixcreditsormorepersummerterm.

(B) Foragraduatestudent:(i) Eightcreditsormorepersemesterwhenthestudentisenrolledintwoormore

graduatelevelcourses;(ii) Ninecreditsormorepersemesterwhenthegraduatestudentisenrolledinone

graduatelevelcourse;(iii) Twelvecreditsormore,whenthestudentisenrolledinnograduatelevel

courses;or(iv) Sixcreditsormorepersummerterm.[Eff11/25/88;am6/3/05](Auth:HRS

§§231-3(9),237D-16(b))(Imp:HRS§§237D-3,321-11(10))



§18-237D-4-01 Certificate of registration.(a)Eachoperatororplanmanagershallindicate,onitsapplicationforregistration,thetypeofentityitis.Ifthetransientaccommodationisoperatedbyamarriedcoupleorcivilunionpartners,themarriedcoupleorcivilunionpartners,mayjointlyfileoneindividualregistration.

Theregistrationshallincludethenameandaddressoftheoperatororplanmanagerandofeachplaceofbusinesssubjecttothischapter.Anoperatorwhoacquiresanadditionaltransientaccommodationorsells,transfers,assigns,orgivesawayatransientaccommodationduringthetaxableyearshallfileanamendedapplicationforregistrationcontaininganupdatedlistofeachplaceofbusinesssubjecttothischapterbeforetheendofthetaxableyearorwithinthirtydaysoftheacquisitionorgiveaway,whicheverislater.

(b) Thereshallbenoadditionalregistrationfeesdueiftheoperatororplanmanagersubsequenttoitsinitialregistrationaddsmoreunitstoitsregistration,norshalltherebearefundifthenumberofunitsisreduced.Uponreceiptoftherequiredpayment,thedirectorshallissueacertificateofregistration.

(c) Anycancellationofaregistrationshallbewithoutanyrefundoftheregistrationfeepaid.

Example 1.HotelCorporation,engagedinfurnishingtransientaccommodationsinHawaii,ownsandoperatesahotel.Thehotelhassixroomsthatarerentedtotransients.HotelCorporationshallregisteritsnameandaddressandthebusinessname(ifany)andaddressofthehotelwiththedepartmentandshallpayaone-timefeeof$15fortheregistration.

Example 2.Mr.Petersownsasingleapartmentunithefurnishesasatransientaccommodation.Mr.Petersshallregisterwiththedepartmentbyprovidinghisnameandaddress,andthebusinessname(ifany)andaddressoftheapartment.Mr.Petersshallpayaone-timefeeof$5fortheregistration.

Example 3.PropertyCorporation,afirmengagedinthepropertymanagementbusiness,managesacondominiumapartmentbuildingconsistingoffiftyapartments.Eachoftheapartmentsinthebuildingisownedbyadifferentinvestorwhorentsthepremisesonashort-termbasis.Althoughsomeoftheapartmentsareoccasionallyrentedonalong-termbasis,PropertyCorporationobtainstheconsentofalltheinvestors,files,andpaysthesumof$250forfiftycertificatesofregistrationonbehalfoftheinvestors.PropertyCorporationhasdeterminedthatthisproceduregreatlyfacilitatesitsactivity.Withintwomonthsofoperation,theclimateoftherentalmarketsuddenlychangestoapointthatalloftheinvestorsrequestPropertyCorporationtochangethemodeofrentingtheapartmentsfromashort-termrentaltoalong-termleasebasis.PropertyCorporationinturnrequeststhedepartmentinwritingtocancelallthecertificatesofregistrationinforce.NeitherPropertyCorporationnoranyoftheinvestorsisentitledtoarefundofanypartofthe$250inregistrationfeespaid.Furthermore,PropertyCorporationshallprepareandsubmitanannualtaxreturnsummarizingthetwomonthsoftransientaccommodationsactivityforeachofthefiftycondominiumapartments.AlthoughPropertyCorporationmustfilefiftyannualtaxreturns,paymentoftaxesonthefiftyunitsmaybemadewithasinglecheckenclosedinthesameenvelopewiththefiftyreturns.

Example 4.TheindividualownersofTropicalCondominiumApartments(consistingofonehundredunits)andRenterCorporationenterintoacontract.Accordingtothecontract,RenterCorporationleasestheentirebuildingfromtheownersofTropicalCondominiumApartmentstooperatetheapartmentsastransientaccommodations.Inthissituation,RenterCorporationisdeemedtheoperator.RenterCorporationshallregisteritsnameandaddressanditsbusinessname(ifany)andaddressofthecondominiumapartmentswiththedepartment.RenterCorporationshallpaya$15one-timefeeforasingleregistrationcoveringtheonehundred-unitapartment. Asoperatorofthetransientaccommodations,RenterCorporationshallbeliableforthetaximposedunderthischapterandthegeneralexcisetaximposedunderchapter237,HRS,onthegrossrentalandgrossincome,respectively,derivedfromthetransientaccommodationsandapartmentrentalactivities,respectively. TheownersoftheindividualunitsinTropicalCondominiumApartmentsareseparatelyliableforthegeneralexcisetaximposedunderchapter237,HRS,onthegrossincomeorgrossreceiptsderivedfromtheactivityofleasingtheapartmentunitstoRenterCorporation.

Example 5.ABC,Inc.operatesseveralfacilities.OnOahu,ABCoperatestwohotelsinWaikiki;acondominiumapartmentthatisoperatedasahotel;andafifty-unitapartmentfacilityin

HRS §237D-4



Punaluu,ofwhichsomeoftheunitsarerentedforlessthanonehundredeightyconsecutivedaysandotherunitsforperiodsofoveronehundredeightyconsecutivedays.ABCalsooperatesahotelontheislandofHawaii,acondominiumoperatedasahotelontheislandofMaui,andthreehotelsontheislandofKauai.ABC,Inc.shallregisterwiththedepartmentandshalllistthenamesandaddressesofeachofthehotelsorcondominiumapartmentsandidentifyallofthespecificroomsorapartmentsthataretransientaccommodations.Regardingthefifty-unitapartmentlocatedinPunaluu,ABCmustgivethenameandaddressoftheapartmentbuildingandidentifytheunitsthatarecustomarilyoccupiedbyandregularlyfurnishedtotransientsforconsideration.IfABCownsapartmentnumbers1to25and35to50,ABCwillindicatethenumbers1to25and35to50ontheregistrationform.ABCdoesnothavetoenumerateeachapartmentnumbersuchas1,2,3,etc.

Example 6.AssumethesamefactsasExample5,exceptthataftercomplyingwithallrequirementsforregistration,ABC,Inc.beginsoperatingunits30-34inthePunaluuapartmentbuildingastransientaccommodations.ABC,Inc.alsopurchasesahotelonKauaiandbeginsoperatingitasatransientaccommodation.ABC,Inc.mustupdateitsregistrationwiththedepartmenttoindicatethatitisoperatingapartmentnumbers1to25and30to50ofthePunaluuapartmentbuildingandalsotoindicatethatitisoperatingthenewhotelonKauaibeforetheendofthetaxableyearorwithinthirtydaysoftheacquisition,whicheverislater.[Eff11/25/88;am7/18/94;am6/3/05;am2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-02 Display of the registration certificate.(a)Eachoperatororplanmanagershallatalltimesconspicuouslydisplaythecertificateofregistrationoranoticestatingwheretheregistrationmaybeinspectedateachplaceforwhichitisissued.Theregistrationornoticemustbeconspicuouslydisplayed:

(1) Insideeachunitofwhichthetransientaccommodationconsists;or(2) Atthefrontdesk.

(b) Forpurposesofthissection,“frontdesk”meansadesk,kiosk,orthelikeatthesamepropertyasthetransientaccommodationunitthathandlescheckinginoroutandhandlesotherrequestsfromguests.

Example 1. Mr.Petersownsasinglecondominiumunithefurnishesasatransientaccommodation.Theunitisoneoffiftyunitsinitscondominiumbuilding.Mr.Petersconspicuouslydisplaysinsidetheunitanoticestatingthattheregistrationmaybeinspectedatthecondominiumbuilding’sfrontdesk.Mr.Petersisincompliancewithsection18-237D-4-02.

Example 2.ABC,Inc.ownsallonehundredunitsofacondominiumbuildinginWaikikiandfurnishesthemastransientaccommodations.ABC,Inc.conspicuouslypostsitsregistrationatthefrontdeskofthebuilding,butdoesnotpostanythinginsideeachunit.ABC,Inc.isincompliancewithsection18-237D-4-02becauseithaspostedtheregistrationoranoticeofwhereitmaybeinspectedatthefrontdesk.

Example 3.AssumethesamefactsasExample2,exceptthatABC,Inc.conspicuouslypostsitsregistrationatitsheadquarterslocatedinanofficebuildingindowntownHonolulu,ratherthanatthefrontdeskofthebuildinginWaikiki.Inaddition,ABC,Inc.conspicuouslypostsatthefrontdeskofitsWaikikicondominiumbuildinganoticestatingthattheregistrationmaybeinspectedatitsheadquartersdowntown,includingtheheadquarters’address.ABC,Inc.isincompliancewithsection18-237D-4-02becauseithasconspicuouslypostedatthefrontdeskanoticestatingwheretheregistrationmaybeinspected.

Example 4.PropertyCorporation,afirmengagedinthepropertymanagementbusiness,managesacondominiumapartmentbuildinginKaanapaliconsistingoffiftyapartments.Eachoftheapartmentsinthebuildingisownedbyadifferentinvestorwhorentsthepremisesonashort-termbasis.ThecondominiumbuildinghasafrontdeskwhereanoticeisconspicuouslydisplayedstatingthattheregistrationforeachofthefiftydifferentapartmentsmaybeinspectedatPropertyCorporation’sKahuluioffice,includingtheoffice’saddress.Allfiftyofthebuilding’sapartmentownersareincompliancewithsection18-237D-4-02becausenoticeofwhereeachoftheirregistrationsmaybeinspectedisconspicuouslypostedatthebuilding’sfrontdesk.[Eff11/25/88;am7/18/94;am6/3/05;am2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-03 REPEALED.[R2/3/19]

HRS §237D-4

HRS §237D-4



§18-237D-4-04 REPEALED.[R2/3/19]

§18-237D-4-05 REPEALED.[R2/3/19]

§18-237D-4-06 REPEALED.[R2/3/19]

§18-237D-4-07 REPEALED.[R2/3/19]

§18-237D-4-08 Display of local contact information.Eachoperatororplanmanagershallatalltimesconspicuouslydisplaythename,phonenumber,andelectronicmailaddressofthelocalcontactatthesameplaceastheregistrationornoticestatingwheretheregistrationmaybeinspected;providedthatthelocalcontactinformationshallbedisplayedatthesamepropertyasthetransientaccommodation.

Example 1.Ms.Floraownsasinglecondominiumunitshefurnishesasatransientaccommodation.Theunitisoneoftwentyunitsinitscondominiumbuilding.Ms.Floraconspicuouslydisplaysintheunitanoticestatingthattheregistrationmaybeinspectedattheofficeofthepropertymanager,whichislocatedinacommercialbuildingdownthestreet.Theregistrationandlocalcontactinformationareavailableforinspectionatthepropertymanager’soffice.Ms.Floraisnotincompliancewithsection18-237D4-08becausethelocalcontactinformationisnotdisplayedatthesamepropertyasthetransientaccommodationunit.

Example 2.BuildingManagersInc.,afirmengagedinthepropertymanagementbusiness,managesacondominiumapartmentbuildingconsistingofonehundredapartmentunits.Eachoftheapartmentsinthebuildingisownedbyadifferentinvestorwhorentsthepremisesonashort-termbasis.Thecondominiumbuildinghasafrontdeskwhereanoticeisconspicuouslydisplayedstatingthattheregistrationandlocalcontactinformationforeachoftheonehundreddifferentapartmentsmaybeinspecteduponrequestatthefrontdesk.Theownersoftheapartmentunitsarenotincompliancewithsection18-237D-4-08becauseinformationforthelocalcontactsarenotconspicuouslydisplayed.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-09 Procedures; scope and purpose. (a)Sections18-237D-4-09to18-237D-4-35implementsection237D-4,HRS,andapplynotwithstandinganycontraryprovisionintitle14,HRS,andtherulesadoptedthereunderrelatingtothegeneralenforcementoftaxes.

(b) Theadministrativerulescontainedhereingovernthepracticeandprocedureinallcitationsforfailuretodisplayissuedbythedepartment,includingtheimpositionofanymonetaryfines,andanysubsequentrightsofreview.

(c) Anagencyappealofacitationforfailuretodisplayundersection237D-4,HRS,shallbeconductedasacontestedcaseunderchapter91,HRS.Theproceduresforcontestedcasesinchapter91,HRS(includingsections91-8.5through91-15,HRS),shallapplytoagencyappeals.

(d) Theadministrativerulescontainedinsections18-237D-4-09through18-237D-4-35shallbeconstruedtosecurethejustandspeedydeterminationofeverycitationforfailuretodisplayissued.

(e) Shouldanyparagraph,sentence,clause,phrase,orapplicationofanyportionofsections18-237D-4-09through18-237D-4-35bedeclaredunconstitutionalorinvalidforanyreason,theremainderofanyotherapplicationofthischaptershallnotbeaffectedthereby.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-10 Definitions. Asusedinsections18-237D-4-09through18-237D-4-35:“Agencyappeal”meansanappealofacitationforfailuretodisplaytothedirectororthedirector’s

designeepursuanttosection237D-4(h),HRS.“Citationforfailuretodisplay”meansacitationissuedforafailuretodisplaytheinformationrequired

undereithersection237D-4(b),HRS,or237D-4(d),HRS.“Department”meansthedepartmentoftaxation.“Director”meansthedirectoroftaxation.“Hearing”meansacontestedcasehearinginaccordancewithchapter91,HRS,todetermineanagency

appeal.“Person”meansoneormoreindividuals,acompany,acorporation,apartnership,anassociation,or

anyothertypeoflegalentityandalsoincludesanofficeroremployeeofacorporation,apartneroremployeeofapartnership,atrusteeofatrust,afiduciaryofanestate,oramember,employee,orprincipalofanyotherentity,

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4



whoassuchofficer,employee,partner,trustee,fiduciary,memberorprincipalisunderadutytoperformandisprincipallyresponsibleforperformingtheactinrespectofwhichtheviolationoccurs.

“Presidingofficer”meansthedirectororpresidingofficerwhowillbeconductingthehearing.“Respondent”meansthepersontowhomthecitationforfailuretodisplayisaddressed.“Specialenforcementsection”meanstheunitcreatedwithinthedepartmenttocarryoutthefunctions

setforthinsection231-81,HRS.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-11 Fine for failure to display. (a)Apersonrequiredundersection237D-4(b),HRS,toconspicuouslydisplayacertificateofregistrationissuedundersection237D-4,HRS,aswellasthename,phonenumber,andelectronicmailaddressofalocalcontactbutwhofailstodisplayoneormoreofthoserequireditemsshallbeinviolationofsection237D-4(b),HRS,andshallbefinedasfollows:

(1) Forafirstviolation,afineof$500perdaypertransientaccommodationinviolation;(2) Forasecondviolation,afineof$1,000perdaypertransientaccommodationinviolation,

excludingdaysforwhichafinewasissuedforafirstviolation;(3) Forthirdandsubsequentviolations,afineof$5,000perdaypertransientaccommodationin

violation,excludingdaysforwhichafinewasissuedforfirstorsecondviolations;providedthatthedepartmentmayissueafineofgreaterthan$5,000perday,butmustprovideawrittenexplanationofwhythefineamountisgreateronthecitation.

(b) Onlyonecitationundersubsection(a)maybeissuedtothepersoninanythirtydayperiodforanyfailuretodisplaypertransientaccommodation.Thesamepersonmaybeissuedadditionalcitationsundersubsection(a)duringthethirtydayperiodforanyfailuretodisplayinothertransientaccommodationsthepersonoperates.Followingtheexpirationofthethirtydayperiod,acitationmaybeissuedforfailuretodisplayinconnectionwiththesametransientaccommodationifitcontinuestobeinviolation.Citationsissuedforsecondviolationsshallnotincludefinesfordaysofviolationforwhichafinewasissuedinthecitationforfirstviolationforthesametransientaccommodation.Citationsissuedforthirdviolationsshallnotincludefinesfordaysofviolationforwhichfineswereissuedinthecitationsforthefirstandsecondviolationsforthesametransientaccommodation.

Example 1.ABC,Inc.ownsallonehundredunitsofacondominiumbuildingwhichitfurnishesasatransientaccommodation.ABC,Inc.conspicuouslydisplaysatthebuilding’sfrontdeskitscertificateofregistrationasatransientaccommodationsoperatoraswellastherequiredlocalcontactinformation.ABC,Inc.isincompliancewithsection18-237D-4-11becauseithasconspicuouslydisplayedthelocalcontactinformationinthesameplaceastheregistrationornoticestatingwheretheregistrationmaybeinspected.

(c) Apersonrequiredundersection237D-4(c),HRS,toconspicuouslyprovideinanyadvertisementaregistrationidentificationnumberissuedundersection237D-4,HRS,aswellasconspicuouslyprovidethename,phonenumber,andelectronicmailaddressofalocalcontact,orprovidesuchlocalcontactinformationuponthefurnishingofthetransientaccommodation,butwhofailstoprovideoneormoreoftheserequireditemsshallbeinviolationofsection237D-4(d),HRS,andshallbefinedasfollows:

(1) Forafirstviolation,afineof$500perdayinviolation,includingthefifteendaysforwhichthepersonreceivedawrittenwarningundersection18-237D-4-12forthesametransientaccommodationifthepersoniscitedforthefirstviolationupontheperson’sfailuretocuretheviolationduringthefifteen-dayperiod;

(2) Forasecondviolation,afineof$1,000perdayinviolation,excludingdaysforwhichafinewasissuedforafirstviolationforthesametransientaccommodation;and

(3) Forthirdandsubsequentviolations,afineof$5,000perdayinviolation,excludingdaysforwhichafinewasissuedforfirstandsecondviolationsforthesametransientaccommodation;providedthatthedepartmentmayissueafineofgreaterthan$5,000perday,butmustprovideawrittenexplanationofwhythefineamountisgreateronthecitation.

(d) Onlyonecitationundersubsection(c)maybeissuedtothepersoninanythirtydayperiodforanyfailuretodisplaypertransientaccommodation.Thesamepersonmaybeissuedadditionalcitationsundersubsection(c)duringthethirtydayperiodforanyfailuretodisplayrelatedtoothertransientaccommodations.Followingtheexpirationofthethirtydayperiod,acitationmaybeissuedforfailuretodisplayinconnectionwiththesametransientaccommodationorforanyothertransientaccommodation.Citationsissuedforsecondviolationsshallnotincludefinesfordaysofviolationforwhichafinewasissuedinthecitationforfirstviolationforthesametransientaccommodation.Citationsissuedforthirdviolationsshallnotincludefinesfordaysofviolationforwhichfineswereissuedinthecitationsforfirstandsecondviolationsforthesametransientaccommodation.Similarly,allcitationsissuedfor

HRS §237D-4



subsequentviolationsshallnotincludefinesfordaysofviolationforwhichfineswereissuedinpriorcitationsforthesametransientaccommodation.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-12 Written warning for first violation under section 237D-4(d), HRS. (a)Inlieuofissuingapersonafirstcitationandfineforfailuretodisplayundersection18-237D-4-11(c)(1),thedepartmentshallissuetheviolatorawrittenwarningifthepersonhasneverbeforereceivedawrittenwarningforanyviolationforanytransientaccommodationundersection18-237D-4-11(c)(1).

(b) Onlyonewrittenwarninginlieuofafirstviolationandfineundersubsection(a)maybeissuedperperson.Foranysubsequentfirstviolationsthepersonmaycommitundersection18-237D-4-11(c)(1),thedepartmentshallissueacitationwithafine.

(c) Forpurposesofthissection,awrittenwarningshallcontain:(1) Thenameandaddressoftheviolator;(2) Thespecificallegedviolationorviolationsoftitle14,HRS,ortheadministrativerules

adoptedthereunder;(3) Theaddressofthetransientaccommodation,ifpossible;(4) Adescriptionoftheadvertisementwherethetransientaccommodationisadvertised.The

advertisementshallbedescribedtothebestofthedepartment’sabilityandmayincludesuchinformationasthenameanddateofthepublication,thewebsiteaddressoranyotherdescriptionsufficientforareasonablepersontolocatetheadvertisement;and

(5) Astatementthattheviolatormaybecitedundersection18-237D-4-13beginningfifteendaysafterthewrittenwarning’sdateofissuanceforanyviolationrelatedtothisoranyothertransientaccommodation,includinganyviolationsrelatedtoothertransientaccommodationsoperatedbytheviolatorthedepartmentsubsequentlydiscoversduringthefifteen-dayperiod.

(d) Thedepartmentshallkeeparecordofallwrittenwarningsissued.(e) Awrittenwarningshallbeservedby:

(1) Personalserviceontherespondent,respondent’sofficerordirector,orrespondent’sregisteredagentforserviceofprocessasshownintherecordsofthedepartmentofcommerceandconsumeraffairs;

(2) Certifiedmail,restricteddelivery,senttotherespondent’slastknownbusinessorresidenceaddressortheaddressofrespondent’sregisteredagentforserviceasshownintherecordsofthedepartmentofcommerceandconsumeraffairs;or

(3) Publicationatleastonceineachoftwosuccessiveweeksinanewspaperofgeneralcirculationifservicebycertifiedmailisnotmadebecauseofrefusaltoacceptserviceorbecausethedepartmenthasbeenunabletoascertaintheaddressnecessaryforserviceunderparagraph(2)afterreasonableanddiligentinquiry.Publicationshallconsistsolelyoftherespondent’snameandastatementthattherespondentisbeingserveditswrittenwarningbythepublicationandhasfifteendaysfromthedateofservicetocureitsviolation.Noreturninformationorotherpersonalorconfidentialinformationshallbedisclosedinthepublication.

Ifthewrittenwarningisservedbycertifiedmailundersubsection(e)(2),thedateofserviceofthewrittenwarningisthedatethewrittenwarningwasdelivered.Ifthewrittenwarningisservedbypublicationundersubsection(e)(3),thedateofserviceofthewrittenwarningisthelastdateofpublicationinthesecondsuccessiveweek.

(f) If,duringthefifteen-dayperioddescribedundersubsection(c)(5),thedepartmentdiscoversanothertransientaccommodationoperatedbytheviolatorforwhichacitationforafirstviolationmaybeissued,thedepartmentshallnotissuesuchcitationuntilthefifteen-dayperiodhaselapsed;providedthatiftheviolatordoesnotcureallofitsviolationsduringthefifteen-dayperiodprovidedbythewrittenwarning,thedepartmentshallissuecitationsforalltransientaccommodationsinviolationaftertheexpirationforalldaysduringwhichtheywereinviolationpursuanttosection18-237D-4-11.

Example 1.OperatorLLCownsonecondominiumunitwhichitoperatesasatransientaccommodation.OperatorLLCsubmitsitsunittoTAbroker.com,awebsitewhichdisplaysasearchabledatabaseofunitsforrent.ThedepartmentdiscoversthatthelistingforOperatorLLC’sunitdoesnotdisplayOperatorLLC’sregistrationidentificationnumber,noristhereanelectroniclinkleadingtothenumber.ThedepartmentreviewsitsrecordsandseesthatithasneverissuedawarningoracitationtoOperatorLLC.ThedepartmentshallissueawrittenwarningtoOperator

HRS §237D-4



LLCundersection18-237D-4-12.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-13 Citation for failure to display; requirements. (a)Acitationforfailuretodisplaymustbeissuedontheformsprescribedbythedepartment.

(b) Acitationforfailuretodisplayshallincludethefollowinginitscontents:(1) Thenameandaddressoftherespondent;(2) Thespecificallegedviolationorviolationsoftitle14,HRS,ortheadministrativerules

adoptedthereunderwhichconstitutecausefortheissuanceofthecitationforfailuretodisplay;

(3) Thelocationofwheretheviolationoccurredorisoccurring.Ifthecitationisissuedpursuanttosection237D-4(b),HRS,thelocationshallincludetheaddressofthetransientaccommodation.Ifthecitationisissuedundersection237D-4(d),HRS,thelocationshallincludeadescriptionoftheadvertisementandadescriptionofthetransientaccommodation.Theadvertisementshallbedescribedtothebestofthedepartment’sabilityandmayincludesuchinformationasthenameanddateofthepublication,thewebsiteaddressoranyotherdescriptionsufficientforareasonablepersontolocatetheadvertisement.Thetransientaccommodationshallalsobedescribedtothebestofthedepartment’sability,includingtheaddressifpossible;

(4) Asignatureofthespecialenforcementsectionemployeeorotherdepartmentemployeeauthorizedtoissuethecitation.Bysigningthecitationforfailuretodisplay,theissuercertifiesthatthestatementscontainedinthecitationaretrueandcorrect,tothebestofhisorherknowledge.Acitationthathasnotbeensignedbyadulyauthorizedemployeeofthedepartmentshallbevoidab initio;

(5) Ifapplicable,theamountofthemonetaryfineimposedagainsttherespondent;(6) Aspacefortherespondent,ortherespondent’sagentorrepresentative,toacknowledge

receiptofthecitationbysignature.Iftherespondentorrespondent’sagentorrepresentativerefusestosignorifforsomeotherreasonthedepartmentemployeeisunabletoacquireasignaturetoacknowledgereceipt,thecitationmayindicate“refusedtosign”,“unavailable”,“nosignatureforsafetyreasons”,“servicebycertifiedmail”,“servicebypublication”,orotherlanguageexplainingthelackofsignaturebytherespondentortherespondent’sagentorrepresentative.Thelackofthesignatureoftherespondentortherespondent’sagentorrepresentativeshallnotaffectthevalidityofthecitation;and

(7) Informationregardingtherespondent’sappealrights,includingtherequirementthatthecitationmustbereturnedtothedepartmentwithinthirtydaysfromthedatethecitationwasserved,respondent’srighttoahearingbeforethedirectororthedirector’sdesignee,andcontactinformationforwheretherespondentmayobtainfurtherinformation.

Example 1.OperatorLLCownsonecondominiumunitontheislandofKauaiwhichitoperatesasatransientaccommodation.OnJanuary15,OperatorLLC’sunitisadvertisedonTAbroker.com,awebsitewhichdisplaysasearchabledatabaseofunitsforrent.OnJanuary15,thedepartmentdiscoversthatthelistingforOperatorLLC’sunitdoesnotdisplayOperatorLLC’sregistrationidentificationnumber,noristhereanelectroniclinkleadingtothenumber.ThedepartmentreviewsitsrecordsandseesthatithasneverissuedawarningoracitationtoOperatorLLCforanytransientaccommodation.ThedepartmentissuesawrittenwarningtoOperatorLLCundersection18-237D-4-12,explainingthatOperatorLLChasfifteendaystocureitsviolationbyensuringthatitsregistrationidentificationnumberisdisplayedintheadvertisement.OnJanuary31,thedepartmentchecksontheadvertisementagainandseesthatOperatorLLC’sunithasbeencontinuouslyadvertisedsinceJanuary15andhasneverhadtheregistrationidentificationnumberdisplayedorlinkedto.ThedepartmentshallissueOperatorLLCacitationforfailuretodisplayandthecitationshallincludeafineforafirstviolationof$500multipliedbytheseventeendaysduringwhichthistransientaccommodationhasbeeninviolationforatotalfineof$8,500.

Example 2.AssumethesamefactsasExample1,exceptthatthedepartmentchecksontheadvertisementonJanuary27andseesthattheregistrationidentificationnumberisnowdisplayed.ThedepartmentshallnotissueacitationbecauseOperatorLLCcureditsviolationwithinthefifteen-dayperiodgrantedbythewrittenwarning.

HRS §237D-4



Example 3.AssumethesamefactsasExample1,exceptthatinFebruary,OperatorLLCpurchasesasecondcondominiumunitonOahuandbeginsoperatingitasatransientaccommodation.OnMarch1,OperatorLLCbeginsadvertisingtheOahuunitin“AinaBNB”,amonthlyprintmagazinethatadvertisesvacationrentals.OnMarch5,thedepartmentseestheMarchissueofAinaBNBanddiscoversthattheadvertisementdoesnotdisplayOperatorLLC’sregistrationidentificationnumber.ThedepartmentreviewsitsrecordsandseesthatithasalreadyissuedOperatorLLCawrittenwarningandacitationforafirstviolation,albeitoneforadifferenttransientaccommodation.ThedepartmentshallissueOperatorLLCacitationforfailuretodisplayandthecitationshallincludeafineof$500multipliedbytheonedayduringwhichthetransientaccommodationhasbeeninviolationforatotalfineof$500.

Example 4.AssumethesamefactsasExample3,exceptthatAinaBNBisadailypublicationandrunsOperatorLLC’sunitadvertisementeverydayfromMarch1toMarch5.Thecitationshallincludeafineof$500multipliedbythefivedaysofviolationforatotalfineof$2,500.

Example 5.OnJuly1,whileinspectingatransientaccommodationunitoperatedbySurfwaxRentalsLLC,thedepartmentdiscoversSurfwaxRentalsLLChasfailedtoconspicuouslydisplayitsregistrationidentificationnumberinsidetheunitoratthefrontdesk.SurfwaxRentalsLLC’sagentadmitsthattheunithasbeenrentedoutforthirtydaysandduringthattimeSurfwaxRentalsLLCneverconspicuouslydisplayeditsregistrationidentificationnumber.ThedepartmentreviewsitsrecordsandseesthatithasneverissuedSurfwaxRentalsLLCacitation.ThedepartmentshallissueSurfwaxRentalsLLCacitationforfailuretodisplayandthecitationshallcontainafineforafirstviolationof$500multipliedbythethirtydaysduringwhichthetransientaccommodationhasbeeninviolationforatotalfineof$15,000.Writtenwarningsarenotissuedforfailurestoconspicuouslydisplaytheinformationrequiredbysection237D-4(b),HRS.

Example 6.AssumethesamefactsasExample5,exceptthatonJuly15,thedepartmentgoestoTAbroker.comandseesSurfwaxRentalsLLC’sunitlistedinanadvertisementthatfailstodisplaytheregistrationidentificationnumber.Thedepartmentreviewsitsrecordsandseesthatitpreviouslyissuedafineforfailuretodisplayundersection237D-4(b),HRS,onJuly1,butthatithasneverissuedawarningorcitationwithafineforfailuretodisplayundersection237D-4(d),HRS.ThedepartmentshallissueSurfwaxRentalsLLCawrittenwarningundersection18-237D-4-12.Thedepartmentshallnotissueacitationwithafineforasecondviolationbecauseviolationsundersections237D-4(b)and(d),HRS,areconsideredseparateviolations.Additionally,thefactthatthedepartmentissuedthecitationundersection237D-4(b),HRS,fewerthanthirtydaysearlierandforaviolationinthissametransientaccommodationshallnotprecludethedepartmentfromissuingawrittenwarningoracitationundersection237D-4(d),HRS,tothesamepersonandforaviolationrelatedtothesametransientaccommodation.Afineissuedundersection237D-4(b),HRS,andafineissuedundersection237D-4(d),HRS,maybeissuedtothesamepersonduringthesamethirty-dayperiodbecausetheyareconsideredseparateviolations.

Example 7.FacePlusisanonlinesocialnetworkingwebsitewhichallowsitsuserstocreateauserprofileandpoststatusupdatesforotheruserstosee.SallySocial,anindividualuserofFacePlus,postsastatusupdatewhichsayssheisofferingtorentoutthecottageonherpropertyfor$200pernight.ThedepartmentmayissueawarningorcitationtoSallySocialbecausesheisanoperatorofatransientaccommodationsandherstatusupdateisanadvertisementforatransientaccommodation.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-14 Issuance of a citation for failure to display. (a)Acitationforfailuretodisplayisbothanoticeofviolationandanoffertosettleanadministrativecaseinvolvinganyviolationrelatedtothecitation,andmayincludeamonetaryfinewherepermittedundertheapplicablelawandrules.

(b) Anyemployeeofthedepartmentwhoisassignedtothespecialenforcementsectionorotherwisedulyauthorizedbythedepartmentmayissueacitationforfailuretodisplaytoapersonifthereisreasontobelievethepersonhasviolatedorisviolatingsection237D-4,HRS,oranyadministrativerulesadoptedthereunder.

(c) Acitationforfailuretodisplaymaybeservedby:

HRS §237D-4



(1) Personalserviceontherespondent,respondent’sofficerordirector,orrespondent’sregisteredagentforserviceofprocessasshownintherecordsofthedepartmentofcommerceandconsumeraffairs;

(2) Certifiedmail,restricteddelivery,senttotherespondent’slastknownbusinessorresidenceaddressortheaddressofrespondent’sregisteredagentforserviceasshownintherecordsofthedepartmentofcommerceandconsumeraffairs;or

(3) Publicationatleastonceineachoftwosuccessiveweeksinanewspaperofgeneralcirculationifservicebycertifiedmailisnotmadebecauseofrefusaltoacceptserviceorbecausethedepartmenthasbeenunabletoascertaintheaddressnecessaryforserviceunderparagraph(2)afterreasonableanddiligentinquiry.Publicationshallconsistsolelyoftherespondent’snameandastatementthattherespondentisbeingservedacitationforfailuretodisplayundersection237D-4,HRS,bythepublicationandhasthirtydaysfromthedateofservicetorespond.Noreturninformationorotherpersonalorconfidentialinformationshallbedisclosedinthepublication.

(d) Ifthecitationisservedbypublicationundersubsection(c)(3),thedateofserviceofthecitationisthelastdateofpublicationinthesecondsuccessiveweek.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-15 Response to citation for failure to display. (a)Arespondentmustrespondtoacitationforfailuretodisplaywithinthirtydaysfromthedateofserviceby:

(1) Payingtothedepartmentthestatedamountofthemonetaryfine,whichshallconstituteacknowledgmentoftheviolationandawaiveroffurtherrightsofreview;providedthatifthetenderedpaymentisdishonoredforanyreasonnotthefaultofthedepartment,therespondentwillbedeemednottohaveansweredthecitation;or

(2) Appealingthecitationbymakingawrittenrequesttothedepartmentforacontestedcasehearinginaccordancewiththeserulesandchapter91,HRS,includingbutnotlimitedtosection18-237D-4-18.Writtenrequestsforcontestedcasehearingsmaybeindicatedonthecitationitself.

(b) Iftherespondentfailstorespondtothecitationforfailuretodisplaywithinthirtydaysfromthedatethecitationwasserved:

(1) Thefailureisanacknowledgmentthattheallegationscontainedinthecitationaretrueandthatthereliefsoughtinthecitation,includinganymonetaryfines,isappropriate;and

(2) Thedepartmentmaycollectanyoverduemonetaryfinesandenforceanyoverduenon-monetarysanctionsassetforthinsection18-237D-4-35(b).

(c) Thehearingofanagencyappealshallbelimitedsolelytotheallegationscontainedinthecitation.Noothermattermaybeconsidered,including,butnotlimitedto,anydisputesrelatingtoanytaxliability.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-16 Venue. Venueofthehearingofanagencyappealisproperinthetaxationdistrictwherethetransientaccommodationthatisthesubjectoftheviolationislocated,orsuchotherlocationasthepartiestothehearingmaymutuallyagree.Anypartymayparticipateinthehearingbytelephone;providedthatthepresidingofficerreceiveswrittennoticeofintenttoappearbytelephoneatleastfivedaysbeforethehearing.[Eff2/3/19](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-4)

§18-237D-4-17 Docket. Thedirectororthedirector’srepresentativeshallmaintainadocketofallagencyappealsofcitationsforfailuretodisplayandeachsuchagencyappealshallbeassignedanumber.Thedocketshallbealistofappealscontainingthenamesofthoseappealing,thenumberassignedtotheirappeals,andalistofrecordsordocumentsfiledforeachappeal,includingbutnotlimitedtoallpleadings,motions,intermediaterulings,evidencereceivedorconsidered,personswhoprovidedoraltestimony,exhibits,statementsofmattersofficiallynoticed,offersofproofandrulingsthereon,proposedfindingsandexceptions,reportsofthepresidingofficer,andstaffmemoranda.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-18 Hearing; request for and scheduling. (a)Upontherespondent’sfilingofacompletedformprescribedbythedepartmentassetforthinsubsection(b),thedirectororthedirector’sdesigneeshallscheduleahearing.

(b) Thedepartmentshallprepareaformforawrittenagencyappealrequestthatallowstherespondenttoprovideaconcisestatementofthebasicfacts,theissuescontested,andthereliefsought.Thedepartmentmaypreparesuchaforminthecitationitself.Theformwrittenagencyappealrequestpreparedbythedepartmentmustbe

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4



usedtorequestanagencyappeal,andwrittenrequestsinanyotherformshallnotconstitutearequestforagencyappealunderthissection.

(c) Nohearingshallbehelduntilduenoticeisgiventoallpartiesasprovidedinsections91-9and91-9.5,HRS,ortheirsuccessorlaws.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,91-9.5,237D-4)

§18-237D-4-19 Presiding officer of hearings; duties and powers; substitute presiding officers. (a)Thedirectorshallconductthehearingsonanappeal,shallrenderthedecision,andshallissuesuchordersandtakesuchactionsasmayberequired;providedthatthedirectormaydesignatearepresentative,whoshallbethepresidingofficer,toconductthehearings,andmakerecommendationsinwritingtothedirector,whichshallincluderecommendationsastofindingsoffactandconclusionsoflaw.Ifthepresidingofficer’srecommendationisadversetoanypartyotherthanthedepartment,therecommendeddecisionshallbeservedonthepersoncontestingthecitation.Thepersoncontestingthecitationshallthereafterhavetendaysfromthedatetherecommendationismailedtofileexceptionstotherecommendationandtopresentargumentstothedirectorinwriting.Thedirectorshallthenpersonallyconsiderthewholerecordorsuchportionthereofasmaybecitedbytheparties,shallrenderthedecisionsastofindingsoffactandconclusionsoflawinwriting,andshallissuesuchordersandtakesuchactionsasmaybefurtherrequired.

(b) Inallhearings,thepresidingofficershallhavethepowertogivenoticeofthehearing,arrangefortheadministrationofoaths,examinewitnesses,certifytoofficialacts,ruleonoffersofproof,receiverelevantevidence,regulatethecourseandconductofthehearing,includingregulatingthemannerofanyexaminationofawitnesstopreventharassmentorintimidationandorderingtheremovalofdisruptiveindividuals,andperformsuchotherdutiesnecessaryfortheproperconductofthehearings.

(c) Thepresidingofficermaysubpoenawitnessesandbooks,papers,documents,otherdesignatedobjects,oranyotherrecord,howevermaintained,pursuanttosection231-7,HRS.

(d) Anyoftheserulesofpracticeandproceduremaybesuspendedorwaivedbystipulationofalltheparties.

(e) Thepresidingofficermayengagetheservicesofastenographer,orsomeonesimilarlyskilled,totakeaverbatimrecordofandtranscribetheevidencepresentedatanyhearingifrequestedforpurposesofrehearingorcourtreview.Thepartymakingtherequestshallberesponsiblefor:

(1) Thefeesandcostsforthetranscript;(2) Makingthenecessaryarrangementstohavethestenographer,orsomeonesimilarlyskilled,

tonotifyallthepartiesinwritingwhenthetranscriptisavailable;and(3) Filingacertifiedcopyofthetranscriptaspartoftherecord.

Ifaverbatimrecordistakenandtranscribed,anyotherpartymayrequestacopyofthetranscriptatthatparty’scost.(f) Ifapresidingofficerisabsentfromascheduledhearingorisincapacitatedfromperformanceof

duty,thedirectormaydesignateanotherrepresentativetoserveasasubstitutepresidingofficerwithoutabatementoftheproceedings.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,91-11,231-7,237D-4)

§18-237D-4-20 Disqualification of presiding officers. (a)Apresidingofficershallbedisqualifiedfromdecidinganagencyappealifthepresidingofficer:

(1) Hasafinancialinterest,asdefinedbysection84-3,HRS,inabusinessorotherundertakingthatwillbedirectlyaffectedbythedecisionoftheagencyappeal;

(2) Isrelatedwithinthethirddegreebybloodormarriagetoanypartytotheproceedingoranyparty’srepresentativeorattorney;

(3) Hasparticipatedintheinvestigationprecedingtheinstitutionoftheagencyappealproceedingsorhasparticipatedinthedevelopmentoftheevidencetobeintroducedatthehearing;or

(4) Hasapersonalbiasorprejudiceconcerningapartythatwillpreventafairandimpartialdecisioninvolvingthatparty.

(b) Apresidingofficershallwithdrawfromfurtherparticipationintheproceedingsupondiscoveryofadisqualifyingconflictofinterestorbiasifthefactualcircumstancesareundisputed.Iftheallegationofadisqualifyingconflictofinterestorbiasisnotclearlysubstantiated,thepresidingofficerneednotvoluntarilywithdrawandthepartyseekingthedisqualificationmayfileamotiontodisqualifythepresidingofficer.Themotionshallbefiledanddecidedbeforetheevidentiaryportionofthehearingontheagencyappeal.Ifapresidingofficerisdisqualified,thedirectorshalldesignateanotherrepresentativetoserveasthepresidingofficer.Ifthedisqualifiedpresidingofficeristhedirector,thedirectorshalldesignatearepresentativetoserveasthepresidingofficerwhosefindingsoffact,conclusionsoflaw,anddecisionandordershallbefinalandbinding.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

HRS §237D-4

HRS §237D-4



§18-237D-4-21 Communications with the director or presiding officers. (a)Nopersonshallcommunicatewiththedirectororpresidingofficerregardingmatterstobedecidedbythedirectororpresidingofficerinanyagencyappealwiththeintent,ortheappearanceoftheintent,toinfluencethedecisionofthedirectororpresidingofficer,unlessallofthepartiestotheproceedingsaregivennoticeofcommunicationandanopportunitytoalsocommunicatewiththedirectororpresidingofficer.

(b) Ifacommunicationismadeprivatelywiththepresidingofficerinviolationofsubsection(a),thepresidingofficershalldisclosethecommunicationtoallpartiesontherecordoftheproceedingsandaffordallpartiesanopportunitytorespondto,refute,orotherwisecommentontheexpartecommunication.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,91-13,237D-4)

§18-237D-4-22 Computation of time. Incomputinganytimeperiodundersections18-237D-4-01through18-237D-4-35,thedayoftheact,event,ordefaultfromwhichtheperiodoftimebeginstorunshallnotbeincluded.Thelastdayoftheperiodsocomputedshallbeincluded,unlessitisaSaturday,Sunday,stateholiday,orstategovernmentfurloughday.IntermediateSaturdays,Sundays,legalholidays,orgovernmentfurloughdaysshallbeincluded.IntermediateSaturdays,Sundays,stateholidays,orstategovernmentfurloughdaysshallbeexcludedinthecomputationwhentheperiodoftimeprescribedorallowedislessthansevendays.Exceptasotherwiseprovided,wheneveranactrequiredtobeperformedundertheserulesmaybeaccomplishedbymail,theactshallbedeemedtohavebeenperformedonthedatetheitemsarepostmarked.Anyreferenceinsections18-237D-4-01through18-237D-4-35totheUnitedStatesmailshallbetreatedasincludingareferencetoadesignateddeliveryserviceandanyreferencetoapostmarkbytheUnitedStatesPostalServiceshallbetreatedasincludingareferencetoanydaterecordedormarkedbythedesignateddeliveryservice.Asusedinthissection,“designateddeliveryservice”meansanydeliveryservicedesignatedforpurposesofsection7502ofthefederalInternalRevenueCode.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-23 Filing of documents; amendment; dismissal; retention. (a)Allpleadings,submittals,petitions,applications,charges,reports,maps,exceptions,briefs,memorandums,andotherpapersrequiredtobefiledinanyagencyappealshallbefiledwiththedirectororasinstructedbythedirectororpresidingofficer.Suchpapersmaybesentelectronically,byfacsimiletransmission,byUnitedStatesmail,postageprepaid,orbyhand-deliverytothedepartment,withinthetimelimit,ifany,assetforthinanystatuteorrule,forsuchfiling.Thedateonwhichthepapersareactuallyreceivedbythedepartmentshallbedeemedthedateoffiling.

(b) Filingelectronicallymeansemailingthefilinginpdfformatorotherformatasinstructedbythedirectororpresidingofficertoanemailaddressdesignatedbythedirectororpresidingofficer.Theemailshallincludeasubjectlineidentifyingtheappealnumber,therespondent,andthehearingdateandadescriptionofthepapersbeingfiled.

(c) Allpapersfiledwiththedepartment,otherthanpapersfiledelectronicallyorbyfacsimile,shallbewritteninink,typewritten,orprinted,shallbeplainlylegible,shallbeonstrongdurablepaper,notlargerthan8-1/2by11inchesinsizeexceptthattables,maps,charts,andotherdocumentsmaybelarger,butshallbefoldedtothesizeofthedocumentstowhichtheyareattached.Papersfiledelectronicallyorbyfacsimilemustbetransmittedinaformthatcanbelegiblyandunderstandablyprintedto8-1/2by11inchpaperor8-1/2by17inchpaper.

(d) Allpapersmustbesignedininkbythepartyoradulyauthorizedagentorattorney.Thepresentationtothedirector(whetherbysigning,filing,submitting,orlateradvocating)ofanypapershallconstituteacertificationthatthepartyininteresthasreadthedocument;thattothebestoftheparty’sknowledge,information,andbeliefeverystatementcontainedinthedocumentistrueandnosuchstatementsaremisleading;andthatthedocumentisnotinterposedfordelay.

(e) Unlessotherwisespecificallyprovidedbyaparticularruleororderofthedepartment,anoriginalandtwocopiesofallpapersshallbefiled.Paperssentelectronicallyorbyfacsimiletransmissionshallnotrequireanycopies.However,theoriginalmustbepresentedtothedepartmentuponrequest.

(f) Theinitialdocumentfiledbyanypersoninanyproceedingshallstateonthedocument’sfirstpagethenameandmailingaddressofthepersonorpersonswhomaybeservedwithanydocumentsfiledintheproceeding.

(g) Allpapersfiledinanagencyappealshallbeservedonallotherpartiestothehearingbythefilingpartyinaccordancewithanydeadlinesimposedbythedirectororpresidingofficer.Servicemaybeaccomplishedby:

(1) Personalserviceontheparty,party’sofficerordirector,orparty’sregisteredagentforserviceofprocessasshownintherecordsofthedepartmentofcommerceandconsumeraffairs;or

(2) Mailtotheparty’slastknownbusinessorresidenceaddressortheaddressofrespondent’sregisteredagentforserviceasshownintherecordsofthedepartmentofcommerceandconsumeraffairs.

HRS §237D-4

HRS §237D-4

HRS §237D-4



(h) Ifanydocumentinitiatingorfiledinanagencyappealisnotinsubstantialconformitywiththeapplicablerulesofthedepartmentastothedocument’scontents,orisotherwiseinsufficient,thepresidingofficer,onhisorherownmotion,oronmotionofanyparty,maystrikethedocument,orrequireitsamendment.Thedocumentinitiatingtheagencyappealmaynotbestricken,butmaybesubjecttorequiredamendments.Ifamendmentsarerequired,thedocumentwithamendmentsshallbeeffectiveasofthedateoftheoriginalfiling.

(i) Alldocumentsfiledinanagencyappealshallberetainedinthefilesofthepresidingofficer,exceptthatthepresidingofficermaypermitthewithdrawaloforiginaldocumentsuponsubmissionofproperlyauthenticatedcopiestoreplacetheoriginaldocuments.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-24 Filed documents available for public inspection; exceptions. (a)Unlessotherwiseprovidedbystatute,rule,ororderofthepresidingofficer,allinformationcontainedinanydocumentfiledinanyagencyappealshallbeavailableforinspectionbythepublicafterfinaldecision.

(b) Confidentialtreatmentmayberequestedwhereauthorizedbystatute.Forgoodcauseshown,thepresidingofficershallgrantsucharequest.

(c) Whenpermittedorauthorized,mattersofpublicrecordmaybeinspectedintheappropriateofficesofthedepartmentduringregularofficehours.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-25 Appearances in agency appeal. (a)Anindividualmayappearontheindividual’sownbehalf;amemberofapartnershipmayrepresentapartnership;anofficerorauthorizedemployeeofacorporationortrustorassociationmayrepresentthecorporation,trust,orassociation;andanofficerorauthorizedemployeeofacorporationortrustorassociationmayrepresentthecorporation,trust,orassociationintheagencyappeal.

(b) ApersonmayberepresentedbyanattorneyqualifiedtopracticebeforethesupremecourtofHawaiiintheagencyappealundertheserules.

(c) Apersonshallnotberepresentedintheagencyappealexceptasstatedinsubsections(a)and(b).(d) Anypersonappearingonbehalfofarespondentshallfileanoticeofappearanceandapowerof

attorneyimmediatelybutnolaterthansevendayspriortothedateofthefirstappearance.Apersonmaynotappearonbehalfofarespondentwithoutproperlyfilinganoticeofappearanceandapowerofattorney.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-26 Substitution of parties. Uponmotionandforgoodcauseshown,thepresidingofficermayordersubstitutionofparties,exceptthatinthecaseofadeathofaparty,substitutionmaybeorderedwithoutthefilingofamotion.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-27 Consolidation; separate hearings. (a)Thepresidingofficer,uponhisorherowninitiativeoruponmotion,mayconsolidateforhearingorforotherpurposesormaycontemporaneouslyconsidertwoormoreproceedingsinvolvingthesamepartiesifthepresidingofficerfindsthattheconsolidationorcontemporaneoushearingwillbeconducivetotheproperdispatchofthebusinessofthedepartmentandtotheendsofjusticeandwillnotundulydelaytheproceedings.

(b) Thepresidingofficer,uponhisorherowninitiativeoruponmotion,mayseparateanyissue,appeal,orothermatterforhearingorforotherpurposesifthedirectororpresidingofficerfindsthattheseparationwillbeconducivetotheproperdispatchofthebusinessofthedepartmentandtotheendsofjustice.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-28 Intervention. Applicationstointerveneinaproceedingshallcomplywithsection18-237D-4-23andshallbeservedonallparties.Applicationsforinterventionwillbegrantedordeniedatthediscretionofthepresidingofficer.Asageneralpolicy,suchapplicationsshallbedeniedunlessthepetitionershowsthatithasaninterestinaquestionoflaworfactinvolvedinthecontestedmatterandthepetitioner’sinterventionwillnotresultinthepotentialunauthorizeddisclosureofareturnorreturninformation.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-29 Prehearing conferences; exchange of exhibits; briefs. (a)Thepresidingofficermayholdorcausetobeheldprehearingconferenceswiththepartiesforthepurposeofformulatingorsimplifyingtheissues,arrangingfortheexchangeofproposedexhibitsorproposedwrittentestimony,settingofschedules,exchangingofnamesofwitnesses,limitationofnumberofwitnesses,andsuchothermattersasmayexpediteorderlyconductanddispositionoftheproceedingaspermittedbylaw.

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-4



(b) Thepresidingofficermayrequestbriefssettingforththeissues,facts,andlegalargumentsuponwhichthepartiesintendtorelyandthepresidingofficermayfixtheconditionsandtimeforthefilingofbriefsandthenumberofpages.Exhibitsmaybereproducedinanappendixtothebrief.Abriefofmorethantwentypagesshallcontainasubjectindexandtableofauthorities.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-30 Motions. (a)Allmotionsotherthanthosemadeduringahearingshallbemadeinwritingtothepresidingofficer,shallstatethereliefsought,andshallbeaccompaniedbyanaffidavit,memorandum,orbothsettingforththegroundsuponwhichtheyarebased.Thepresidingofficershallsetthetimeforallmotionsandopposingaffidavitsandmemorandums,ifany.

(b) Themovingpartyshallserveacopyofthemotionsandallsupportingdocumentsonallotherpartiesatleastfourteendayspriortothehearingonthemotion.Serviceshallbeinaccordancewiththerulesofserviceofpapersundersection18-237D-4-23(g).

(c) Amemoranduminoppositionoracounteraffidavitshallbeservedonallpartiesnotlaterthansevendayspriortothehearing.Serviceshallbeinaccordancewiththerulesofserviceofpapersundersection18-237D-4-23(g).

(d) Failuretoserveorfileamemoranduminoppositiontoamotionorcounteraffidavitorfailuretoappearatthehearingshallbedeemedawaiverofobjectiontothegrantingordenialofthemotion.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-31 Evidence. (a)Thepresidingofficershallruleontheadmissibilityofallevidence.Thepresidingofficermayexercisediscretionintheadmissionorrejectionofevidenceandtheexclusionofimmaterial,irrelevant,orundulyrepetitiousevidencewithaviewtodoingsubstantialjustice.

(b) Evidenceshallgenerallyconsistofthecitationforfailuretodisplay,anyapplicablereports,andotherwrittenstatementssubmittedbyeitherparty,ifany.

(c) Whenobjectionsaremadetotheadmissionorexclusionofevidence,thegroundsrelieduponshallbestatedbriefly.Formalexceptionstorulingsareunnecessaryandneednotbetaken.

(d) Withtheapprovalofthepresidingofficer,awitnessmayreadtestimonyintotherecordondirectexamination.Beforeanypreparedtestimonyisread,unlessexcusedbythepresidingofficer,thewitnessshalldelivercopiesthereoftothepresidingofficerandallparties.Ifthepresidingofficerdeemsthatsubstantialsavingsintimewillresult,acopyofthepreparedtestimonymaybereceivedinevidencewithoutreading.

(e) Ifrelevantandmaterialmatterisofferedinevidenceinadocumentcontainingothermatters,thepartyofferingitshalldesignatespecificallythemattersooffered.Iftheothermatterinthedocumentwouldburdentherecord,atthediscretionofthepresidingofficer,therelevantandmaterialmattermaybereadintotherecordorcopiesofitreceivedasanexhibit.Otherpartiesshallbeaffordedopportunityatthetimetoexaminethedocument,andtoofferinevidenceotherportionsbelievedmaterialandrelevant.

(f) Ifanymattercontainedinadocumentonfileasapublicrecordwiththedepartmentisofferedinevidence,unlessotherwisedirectedbythepresidingofficer,thedocumentneednotbeproducedandmaybereceivedinevidencebyreference.

(g) OfficialnoticemaybetakenofsuchmattersasmaybejudiciallynoticedbythecourtsoftheStateofHawaii.

(h) Exhibitsshallbepreparedinthesameformatasthatrequiredforthefilingofdocumentsundersection18-237D-4-23,unlessotherwisedirectedorpermittedbythepresidingofficer.

(i) Atthehearing,thepresidingofficermayrequiretheproductionoffurtherevidenceuponanyissueandfurtherhearingsnecessaryfortheconsiderationofsuchevidence.Thepresidingofficermayauthorizethefilingofspecificdocumentaryevidenceasapartoftherecordwithinafixedtime.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-10,237D-4)

§18-237D-4-32 Continuances or extensions of time. Wheneverapersonoragencyhasarightorisrequiredtotakeactionwithintheperiodprescribedorallowedbythischapterforanagencyappeal,thepresidingofficermay:

(1) Beforeoraftertheexpirationoftheprescribedperiod,onhisownwithoutadvancenotice,extendsuchperiod;

(2) Uponmotionbeforetheexpirationoftheprescribedperiod,extendsuchperiodbygrantingacontinuance;or

(3) Uponmotionaftertheexpirationoftheprescribedperiod,permittheacttobedoneaftertheexpirationofaspecifiedperiodwherethefailuretoactisreasonablyshowntobeexcusable.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-2,237D-4)

HRS §237D-4

HRS §237D-4

HRS §237D-4



§18-237D-4-33 Service of decisions. Allfinalorders,opinions,orrulingsenteredinanagencyappealshallbeservedinaccordancewithsection91-12,HRS.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-12,237D-4)

§18-237D-4-34 Correction of transcript. Motionstocorrectthetranscriptshallbemadewithinfivedaysafterthereceiptofthetranscriptbythemovantorwithinfourteendaysfromthedatethestenographer,orsomeonesimilarlyskilled,givesnoticetoallthepartiesthatthetranscriptisavailableundersection18-237D-4-19(e),whicheverisearlier.Themotionshallbeacteduponbythepresidingofficer.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-9,237D-4)

§18-237D-4-35 Enforcement and stay. (a)Unlessotherwisestatedinafinaldecision,allmonetaryfinesandnon-monetarysanctionsshallbedueandpayablewithinthirtydaysoftheserviceofthefinaldecisionimposingsuchfinesandsanctions,providedthatifanypartyappealssuchfinaldecisiontothecircuitcourt,suchmonetaryfinesandnon-monetarysanctionsmaybestayedbythereviewingcourtundersection91-14,HRS.

(b) Thedepartmentisauthorizedtocollectanyoverduemonetaryfinesandtoenforceanyoverduenon-monetarysanctionsimposedunderanyfinaldecision,byreferralofthemattertotheattorneygeneralforsuchactionasitmaydeemnecessary.Inthedirector’sdiscretion,anyuncollectedmonetaryfinemaybereferredtothirdparties,includingacollectionagency,ormaybeoffsetagainstanyamountsowedbythedepartmenttotheperson.Anythirdpartyservicefeesincurredforthecollectionofanymonetaryfine,includingcollectionagencyfees,shallbetheresponsibilityofthepersonagainstwhichthemonetaryfinewasassessed.[Eff2/3/19](Auth:HRS§§91-2,231-3(9),237D-16(b))(Imp:HRS§§91-14,237D-4)

§18-237D-5-01 REPEALED.[R7/18/94]

§18-237D-6-01 Return and payments.(a)Ingeneral.Onorbeforethelastdayofeachcalendarmonth,everyoperatororplanmanagertaxableunderthischapterduringtheprecedingcalendarmonthshallfileaswornreturnwiththedirectorinaformprescribedbythedirectorunlesstheoperatororplanmanagerhasobtainedpermissiontomaketaxreturnsandpaymentsonaquarterlyorsemiannualbasis.

(b) Howtoreportgrossincomeorgrossproceeds.Theoperatororplanmanagershallberequiredtofilemonthly,quarterly,orsemiannualreturns,andannualreturnswiththedepartmentinthesamemannerandatthesametimeasthereturnsarefiledinaccordancewithchapter237,HRS,exceptasotherwiseprovidedinthischapter.

(c) Wheretofiletaxreturnsandmakepayments.Allrequiredtaxreturnsandpaymentsshallbefiledormadewiththetaxationdistrictofficewherethetransientaccommodationislocatedandregisteredorinthefirsttaxationdistrictoffice,830PunchbowlStreet,Honolulu,Hawaii96813.Allrequiredtaxreturnsshallindicatethetaxationdistrictwithinwhichthetransientaccommodationuponwhichthetaxisimposedissituated.Ataxreturnwhichfailstoindicatesuchtaxationdistrictshallbedeemedanincompletereturnandshallbereturnedtothetaxpayerforproperfiling.

(d) Revocationofpermissiontofilequarterlyorsemiannualreturns.Atanytime,thedirectormayrevokethepermissiongiventofileareturnandmakepaymentsthereononaquarterlyorsemiannualbasisduringthecalendaryearif:

(1) Anoperatororplanmanagerbecomesdelinquentinthefilingofthetaxreturnorthepaymentoftaxesduethereon;

(2) ThedirectordeterminesthattheoperatororplanmanagerplanstodepartquicklyfromtheStateorisdisposingoforconcealingassetsordoinganyotheracttendingtoprejudiceorjeopardizetheproperadministrationofthischapter,includingassessmentorcollectionofadeficiency.Inadditiontorevokingthepermissiongranted,thedirectormayimmediatelyassess,insofarasnotpreviouslyassessed,thetaxesimposedbythischapter;or

(3) Theoperator’sorplanmanager’stotaltaxliabilityforthecalendaryearexceeds$2,000forquarterlyreturnsor$1,000forsemiannualreturns.

Uponrevocation,theoperatororplanmanagershallfileataxreturnoftheinstallmentofthetaxdueonorbeforethelastdayofthecalendarmonthfollowingthemonth,quarter,orsemiannualperiod,asthecasemaybe,inwhichtheliabilityaroseandeachmonththereafter.Theoperatororplanmanagershalltransmitthereturnwitharemittancefortheamountofthetax,totheappropriatetaxationdistrictofficeinaccordancewithsubsection(c).[Eff11/25/88;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237-30,237D-6)

§18-237D-6-02 Remittances.Theprovisionsofsection237-31,HRS,shallapply.Allremittanceoftaxesimposedbythischaptershallbemadebymoney,bankdraft,check,cashier’scheck,moneyorder,or

HRS §237D-4

HRS §237D-4

HRS §237D-4

HRS §237D-5

HRS §237D-6

HRS §237D-6



certificateofdepositpayabletotheHawaiiStateTaxCollector.Theremittance,togetherwiththetaxreturn,shallbesenttotheappropriatetaxationdistrictofficerwherethetransientaccommodationsorresorttimesharevacationplanuponwhichthetaxisimposedislocated.Iftheoperatoroperatestransientaccommodationsorisinbusinessasaresorttimesharevacationplaninmorethanonetaxationdistrict,theremittanceandthetaxreturnmaybesenttothetaxationdistrictinwhichsuchaccommodationsorresorttimesharevacationplansareregisteredortothefirsttaxationdistrictoffice.Theoperatororplanmanagermaypaythetaxupontransientaccommodationsinmorethanonedistrictwithonecheck;providedthattheoperatororplanmanagermustprovideabreakdownofthetaxpaymentsbythetaxationdistrictinwhichthetransientaccommodationsorresorttimesharevacationplansaresituateduponwhichthetaxisimposed.[Eff11/25/88;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237-30,237D-6)

§18-237D-6-03 Penalties.Penaltiesshallbeinaccordancewithsection237-32,HRS.Penaltiesfornoncompliance,suchasfailuretofileareturnortopaytax,andinterestshallbeaddedtoandbecomeapartofthetax,whenandasprovidedbysection231-39,HRS.[Eff11/25/88](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§231-3(9),237-32,237D-6)

§18-237D-7-01 Annual return.(a)Requirementoffilingannualreturn.Inadditiontothemonthly,quarterly,orsemiannualreturn,everyoperatoroftransientaccommodationsorplanmanagershallfileanannualreturnonorbeforethetwentiethdayofthefourthmonthfollowingthecloseofthetaxableyearwiththetaxationdistrictofficerwherethetransientaccommodationorresorttimesharevacationplanislocatedandregisteredorwiththeofficeofthefirsttaxationdistrict.Iftheoperatororplanmanageroperatestransientaccommodationsorresorttimesharevacationplanslocatedinmorethanonetaxationdistrict,theoperatororplanmanagermayfileanannualreturnwiththetaxationdistrictinwhichsuchaccommodationsareregisteredorwiththefirsttaxationdistrict.Theannualreturnshallsummarizetheoperator’sorplanmanager’sliabilityunderthischapterfortheyear.

(b) Taxyearforpurposesofthetax.Withtheapprovalofthedepartment,operatorsorplanmanagerswhokeeptheirbooksonotherthanacalendaryearbasismayfiletheirannualtaxreturnsandpaytaxesfortheyearcoveringtheoperator’sorplanmanager’saccountingperiodbasedupontheirmethodofkeepingbooksinthesamemannerasreturnsarefiledpursuanttochapter237,HRS.

(c) Signatoriesofthereturn.Thereturnshallbesignedasfollows:(1) Thereturnofanindividualshallbesignedbytheindividual;(2) Thereturnofacorporationshallbesignedbyanyofficer;(3) Thereturnofapartnershipshallbesignedbyanypartner;(4) Thereturnofatrust,estate,orotherentityhavingafiduciaryshallbesignedbythepersonal

representative,trustee,guardian,orotherfiduciary,andiftheentityhasmorethanonefiduciarythereturnmaybesignedbyanyfiduciary;

(5) Thereturnofahusbandandwifewhojointlyengageinbusinessmaybesignedbyeitherthehusbandorwife;or

(6) Anyreturnmaybesignedbyapersonhavingwrittenauthoritytoactonbehalfofthetaxpayerforthispurpose;providedthatthesignerattachtothereturnacopyofthewritinggivingthesignerthatauthority.

(d) Extensionoftimetofile.Thedepartmentmayextendthetimeformakingtheannualtaxreturnontheapplicationofanytaxpayer.Thedepartmentshallgrantreasonableadditionaltimewithinwhichtomakethereturnasthedepartmentmaydeemadvisableforgoodcauseshown.

(1) Theextensionshallbegrantedonlyifallrequiredmonthly,quarterly,orsemiannualtaxreturnshavebeenfiled.

(2) Inmakinganapplicationforextension,theoperatororplanmanagershallfileanapplicationforextensiononaformprescribedbythedepartmentwiththeappropriatetaxationdistrictofficewherethetransientaccommodationorresorttimesharevacationplanislocatedorwiththeofficeofthefirsttaxationdistrictonorbeforetheduedateoftheannualtaxreturnspecifyingthereasonforthedelay.Iftheoperatororplanmanageroperatestransientaccommodationsorresorttimesharevacationplanslocatedinmorethanonetaxationdistrict,theoperatororplanmanagermayfileanapplicationforextensionwiththetaxationdistrictinwhichsuchaccommodationsorresorttimesharevacationplansareregisteredorwiththefirsttaxationdistrict.Onorbeforetheduedateprescribedbystatute,thereshallbepaidthroughmonthly,quarterly,orsemiannualtaxpaymentsorapaymentaccompanyingtheapplicationforanextensionanamountequaltotheestimatedtaxdueforthetaxableyearbutinanycasenotlessthanninetypercentofthetaxforthetaxableyear.Ifpaymentaccompaniestheapplication,theamountshallbeshownontheapplication.

HRS §237D-6

HRS §237D-7

TRANSIENT ACCOMMODATIONS TAX §18-237D-8.5-01


(3) Theannualtaxreturnwithpaymentofanytaxtotheextentnotalreadypaidandaduplicateoftheapplicationshallbefiledduringthetimeperiodspecifiedfortheextension.

(4) Thedepartmentwillconsiderthree-monthextensionsoftimeforfilingtheannualtaxreturn.Theoperatororplanmanagermustrequestandreceiveapprovalforthefirstthree-monthextensionoftimetofiletheannualreturnonformsprescribedbythedepartment.Ifasecondextensionisneeded,theoperatororplanmanagermustapplyforandreceiveapprovalofthesubsequentextension.Innoeventwillthetotalextensionperiodgrantedexceedsixmonthsfromtheoriginaldateofthereturn.

(5) Anapplicationforextensionshallbesignedbyanypersonwhomaysigntheannualreturn,orbyadulylicensedattorneyorcertifiedpublicaccountantonbehalfoftheattorney’soraccountant’sclient.[Eff11/25/88;am7/18/94;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-7)

§18-237D-7-02 Short year return; change of ownership or cessation of business.(a)Theeventofchangeofownership,completetransferoftransientaccommodationactivity,goingoutofbusiness,orotherwiseceasingtoengageintheconductofatransientaccommodationsactivityshallclosethetaxableyear.

(b) Ifthereisachangeofownershiporcompletetransferoftransientaccommodationactivity,orifanoperatororplanmanagergoesoutofbusinessorotherwiseceasestoengageintheconductoftransientaccommodationsactivity,theoperatororplanmanagershallnotifythedirectorofthechange,transfer,orcessationofbusinessnotmorethantendaysafterthechange,transfer,orcessationoccursinaccordancewithsection18-237D-4-04.

(c) Theoperatororplanmanagershallfileamonthlyreturnonorbeforethelastdayofthecalendarmonthfollowingthemonthinwhichthechangeofownership,transferoftransientaccommodationactivity,orcessationofbusinesstookplace.

(d) Iftheoperatororplanmanagerhasbeengrantedpermissiontomakequarterlyorsemiannualtaxreturnsinsteadofmonthlyreturns,theoperatororplanmanagershallfileareturnoftheinstallmentofthetaxduefortheapplicablequarterlyorsemiannualperiodonorbeforethelastdayofthecalendarmonthfollowingthemonthinwhichthechangeofownership,transferoftransientaccommodationactivity,orcessationofbusinesstookplace.

(e) Theoperatororplanmanagershallprepareandsubmitanannualtaxreturnsummarizingthemonthsoftheyearengagedinthetransientaccommodationsactivityonorbeforethetwentiethdayofthefourthmonthfollowingthemonthinwhichthechangeofownership,transferoftransientaccommodationsactivity,orcessationofbusinesstookplace.

(f) Anoperatororplanmanagerfilinganyreturnrequiredbythissectionmayapplyforanextensionassetforthinsection18-237D-7-01(d).[Eff11/25/88;am7/18/94;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§237-30,237D-7)

§18-237D-8-01 Filing of returns.(a)Timeforfilingreturns.Exceptasotherwiseprovidedinsection18-237D-7-02,thetimesforthefilingofmonthly,quarterly,orsemiannualreturnsareasfollows:

(1) Formonthlyreturns,onorbeforethelastdayofthecalendarmonthfollowingthemonthinwhichtaxesaccrued.Thereturnshallreportthegrossrentalorgrossrentalproceedsderivedfromtheimmediatelypreviousmonth.

(2) Forquarterlyreturns,onorbeforethelastdayofthemonthafterthecloseofeachquarter.Forcalendaryearoperatorsorplanmanagers,thereturnsshallbedueonorbeforeApril30,July31,October31andJanuary31.

(3) Forsemiannualreturns,onorbeforethelastdayofthemonthafterthecloseofeachsix-monthperiod.Forcalendaryearoperatorsorplanmanagers,thereturnsshallbedueonorbeforeJuly31andJanuary31.

(b) Paymentoftaxes.Paymentoftaxesshallaccompanythereturnwhetherthereturnsarefiledmonthly,quarterly,orsemiannually.

(c) Wheretoobtainthefilingforms.Theoperatororplanmanagershallobtainallformsforfilingreturnsfromthedepartmentuponregistrationofthetransientaccommodationsorresorttimesharevacationplan.[Eff11/25/88;am6/3/05](Auth:HRS§§231-3(9),237D-16(b),237D-8)(Imp:HRS§§237-30,237D-8)

§18-237D-8-02 (Reserved)

§18-237D-8.5-01 (Reserved)

HRS §237D-7

HRS §237D-8

HRS §237D-8

HRS §237D-8.5

§18-237D-8.6-01 TRANSIENT ACCOMMODATIONS TAX


§18-237D-8.6-01 Reconciliation; form requirement.(a)Everypersonrequiredtofileanannualreturnbecauseofliabilityforthepaymentoftaxesunderthischapterduringtheprecedingtaxableyearshallprovideontheannualreturn:

(1) Theperson’sgeneralexcisetaxlicensenumber;(2) Thegrossproceeds(hotelorotherrentals)subjecttothegeneralexcisetax;and(3) Theamountofgeneralexcisetaxpaidontheparagraph(2)grossproceeds.

(b) Everypersonrequiredtofileanannualreturnbecauseofliabilityforthepaymentoftaxesunderthischapterduringtheprecedingtaxableyearshallprovideontheannualgeneralexcisetaxreturnfiledunderchapter237,HRS,forliabilityforthepaymentoftaxesforthesametaxableyeartheperson’scertificateofregistrationnumberissuedunderthischapter.

(c) ThereconciliationoftransientaccommodationstaxesandgeneralexcisetaxesrequiredbythissectionshallbemadeasprescribedbythedirectorontheannualtaxreturnrequiredbythischapterafterJanuary1,1989.[Eff11/25/88](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-8.6)

§18-237D-9-01 Assessment upon failure to make return; limitation period; extension by agreement.(a)Ingeneral.Ifanyoperatororplanmanagerfailstomakeareturnasrequiredbythischapter,thedirectorshallproceedtoassessthetaxduebaseduponthebestinformationavailableandimposeanyapplicablepenaltyandinterestupontheoperatororplanmanager.

(b) Presumption.Theassessmentshallbepresumedtobecorrectunlessthecontraryshallbeclearlyprovenbythepersonassesseduponanappealdulytakenasprovidedinsection237D-11,HRS.Theburdenofproofisuponthepersonassessedtodisprovethecorrectnessoftheassessment.

(c) Applicationofthethree-yearstatuteoflimitations.Exceptasotherwiseprovidedbythissectionorsection237D-7.5,HRS,theamountoftaximposedunderthischaptershallbeassessedorleviedwithinthreeyearsaftertheannualtaxreturnwasfiledorwithinthreeyearsoftheduedateprescribedforthefilingofthetaxreturn,whicheverislater.Noproceedingincourtwithoutassessmentforthecollectionofanysuchtaxesshallbebegunaftertheexpirationoftheperiod.

(1) Taxreturnsfiledbeforetheduedate.Fortaxreturnsfiledbeforetheduedate,thelimitationsperiodonassessmentbeginstorunasofthelastdayprescribedforfiling.Thefilingofanamendedtaxreturnshallnotextendthestatute.

(2) Thestatuteoflimitationsshallbegintorunonlyuponthefilingofataxreturnwhichiscompleteandmeetsalllegalrequirements.

(3) Noannualtaxreturnorfilingofafraudulenttaxreturn.Theassessmentoftaxorproceedingforcollectionwithoutassessmentshallnotbebarredbythestatuteoflimitationsandthetaxmaybeassessedorleviedatanytimeifnoannualtaxreturnisfiledorifafalseorfraudulenttaxreturnisfiledwithintenttoevadetaxliability,andthetaxmaybeassessedorleviedatanytime.Inthecaseofareturnclaimedtobefalseorfraudulentwithintenttoevadetax,theclaimshallfirstbedeterminedbythecircuitcourtasprovidedinsection235-111(c),HRS.

(d) Extensionbyagreement.Atanytimepriortotheexpirationofthelimitationsperiod,theperiodmaybeextendedbyawrittenagreementinaformprescribedbythedepartmentandsignedbyboth(1)theoperatororplanmanagerand(2)arepresentativeofthedepartment.Theperiodagreeduponmaybeextendedbysubsequentwrittenagreementsmadebeforetheexpirationoftheperiodpreviouslyagreedupon.[Eff11/25/88;am7/18/94;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§235-111,237D-9)

§18-237D-10-01 (Reserved)

§18-237D-11-01 (Reserved)

§18-237D-12-01 Records to be kept; examination; penalties.(a)Ingeneral.Everyoperatorandplanmanagershallkeepsuitablerecordsofgrossrentalandgrossrentalproceeds,orfairmarketrentalvalue,intheEnglishlanguageforathree-yearperiodandsuchotherbooks,recordsofaccount,invoices,andcopiesofmilitaryorders,schoolregistrationstatements,orotherverifyingdocuments,asmayberequiredbythedepartment.Theoperatororplanmanagershallalsomakesuchbooks,recordsofaccount,andinvoicesasmayberequiredbythedepartmentavailableorinspectionbythedepartmentortheMultistateTaxCommissionpursuanttochapter255,HRS,oranyauthorizedrepresentativeofeither.

(b) Penaltiesfornoncompliance.Anypersonoranydirector,president,secretary,ortreasurerofacorporationwhopermits,aids,orabetsthecorporationtoviolatethissectionshallbeguiltyofamisdemeanorandshall

HRS §237D-8.6

HRS §237D-9

HRS §237D-10

HRS §237D-11

HRS §237D-12



befinednotmorethan$1,000orimprisonednotmorethanoneyear,orboth.[Eff11/25/88;am6/3/05](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§§231-34,237D-12)

§18-237D-13-01 (Reserved)

§18-237D-14-01 (Reserved)

§18-237D-15-01 Application of tax.(a)Presumptioniftheaccommodationsletlessthanonehundred-eightydays.Iftheaccommodationsareletforaperiodoflessthanone-hundred-eightyconsecutivedays,itshallbepresumedthattheaccommodationsaretransientaccommodations.

(b) Nopresumptioniftransientaccommodationletforonehundred-eightydaysormore.Iftransientaccommodationsareletforaperiodofonehundred-eightydaysormore,thereisnopresumptionregardingwhethertheaccommodationsfurnishedaretransientaccommodations.

Example.Ms.Smithrentsacondominiumapartmentonamonth-to-monthbasisfromMr.JoneswhileMs.Smith’shomeisbeingconstructed.AlthoughMs.Smithhasexecuteda280-dayconstructioncontractwithabuildingcontractor,Ms.Smithrequestsamonth-to-monthoccupancyincasethenewhomeisnotcompletedonschedule.Sincetheapartmentistobeoccupiedinexcessofthepresumptionperiodof180calendardays,thereisnopresumptionregardingwhetherMs.Smith’soccupancyisatransientaccommodation.BecauseMs.Smithintendstomaketheaccommodationsapermanentplaceofdomicileforthedurationoftheconstructionperiod,thedepartmentcouldfindthatMr.Jonesisnotsubjecttothetransientaccommodationstax.[Eff11/25/88;am7/18/94](Auth:HRS§§231-3(9),237D-16(b))(Imp:HRS§237D-15)

§18-237D-16-01 (Reserved)

§18-237D-17-01 (Reserved)

HRS §237D-13

HRS §237D-14

HRS §237D-15

HRS §237D-16

HRS §237D-17

237D-1 HAWAII ADMINISTRATIVE RULES TITLE 18 DEPARTMENT … · 237D- 226 (Unofficial Compilation) 237D-1 HAWAII ADMINISTRATIVE RULES TITLE 18 DEPARTMENT OF TAXATION CHAPTER 237D TRANSIENT

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