HRS § 237-30.5 — Collection of rental by third party; filing with department; statement required


§237-30.5 Collection of rental by third
party; filing with department; statement required. (a) Every person
authorized under an agreement by the owner of real property located within this
State to collect rent on behalf of the owner shall be subject to this section.
(b) Every written rental collection agreement
shall have on the first page of the agreement the name, address, social
security number, and, if available, the general excise tax number of the owner
of the real property being rented, the address of the property being rented,
and the following statement that shall be set forth in bold print and in
ten-point type size:
"HAWAII GENERAL EXCISE TAXES MUST BE PAID ON
THE GROSS RENTS COLLECTED BY ANY PERSON RENTING REAL PROPERTY IN THE STATE OF
HAWAII. A COPY OF THE FIRST PAGE OF THIS AGREEMENT, OR OF FEDERAL INTERNAL
REVENUE FORM 1099 STATING THE AMOUNT OF RENTS COLLECTED, SHALL BE FILED WITH
THE HAWAII DEPARTMENT OF TAXATION."
Every person entering an oral rental collection
agreement shall furnish the department of taxation the information required
under this subsection and shall give the owner of the property a copy of the
notice required by this subsection.
(c) Every person authorized to collect rent
for another person shall file a copy of the first page of the rental collection
agreement with the department of taxation within thirty days after entering
into the agreement, or shall file a copy of federal Internal Revenue form 1099,
the property owner's social security number, and, if available, the general
excise tax license number of the owner of the property being rented with the
department of taxation at the same time that the forms must be filed with the Internal
Revenue Service.
(d) Every person authorized under an agreement
by the owner of real property located within this State to collect rent on
behalf of the owner within ninety days after the effective date of this section
shall furnish the department of taxation with the information required in
subsection (b) and in the case of federal form 1099 the form for the taxable
year 1983. The person also shall notify the owner that the information is
being furnished and give the owner a copy of the notice required by subsection (b).
(e) Failure to comply with any provision of
this section shall be unlawful. The department of taxation may issue a
citation to any person who fails to comply with any provision of this section.
A citation issued pursuant to this subsection shall include a monetary fine of
no more than $500 per violation. Any fine assessed under this subsection shall
be due and payable thirty days after issuance, subject to appeal rights
provided under this subsection. Citations may be appealed to the director or
the director's designee, and the determination of the director may be appealed
to the circuit court pursuant to chapter 91.