Fine for tax avoidance price fixing

# (a)

A person who sells, offers to sell, or otherwise conducts business offering a lower price to complete the transaction when paid for in cash than by any other payment means shall be fined $2,000; provided that if the person is a cash-based business, the fine shall be $3,000.

# (b)

It shall not be an offense under this section if the person can establish a legitimate business purpose for such differentiation. For example, a legitimate business purpose exists if some fee or cost that is associated with the alternative means of payment (including, but not limited to, credit or debit card merchant fees) is not present when payment is made in cash, provided that the discount offered does not exceed the amount of such fee or cost.

# (c)

For purposes of this section, “cash” shall include legal tender of any country, currency in whatever form, and negotiable instruments in whatever form, but shall not include charge card or debit card payments.

# (d)

Only one citation may be issued to the person in any thirty day period, and only one citation may be issued per incidence of sale or offer in violation of this section. Every citation issued under this section shall be considered as a separate violation.

Last amended: [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-98)

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