HRS § 237-44 — Entertainment business


§237-44 Entertainment business. (a)
As used in this section:
"Admission" means the amount paid for
admission to any place, including admission by season ticket or subscription,
and also includes the amount paid for seats and tables, reserved or otherwise,
and other similar accommodations.
"Cabaret" means any roof garden,
cabaret, or other similar place furnishing a public performance, by or for any
patron or guest who is entitled to be present during any portion of the
performance, including any room in any hotel, restaurant, hall, or other public
place where music and dancing privileges or any other entertainment are
afforded the patrons in connection with the serving or selling of food,
refreshment, or merchandise.
"Transient taxpayer" refers to any
person subject to the tax imposed by this chapter who has no permanent place of
business in the State.
(b) Every person receiving admissions for any
circus, carnival, or any other place whatsoever at which a transient taxpayer
is engaged in business (whether or not further admissions are charged inside
the place, such further admissions, if any, being also subject to this
section), shall set aside from the admissions and hold in trust for the State
five per cent of the admissions, or such lesser amount as the department of
taxation shall approve as sufficient, to guarantee payment of the tax levied by
this chapter on the transient taxpayer. The amount so required to be set aside
from the admissions shall be deposited with the department promptly upon
collection thereof, from time to time, for deposit by it in a special trust
fund in the treasury of the State, there to remain until refunded upon voucher
of the department, or until applied to the payment of the taxes guaranteed
thereby with the consent of the person making the deposit, or until deposited
in court pursuant to chapter 655 or the rules of court. The department may
bring an action to obtain an adjudication of its right to apply the guarantee
fund in payment of taxes and may deposit the fund in court to await the results
of the adjudication, or may be sued by an interested person seeking to obtain
the adjudication and may be ordered to make such deposit in court,
notwithstanding that the department asserts a claim against the fund.
(c) If any person fails to deposit promptly
the guarantee fund required by this section, the department may distrain upon
the admissions or any bank account or other asset in which the same can be
found, for the purpose of obtaining and depositing in the treasury the required
guarantee fund.
(d) Whenever a transient taxpayer is engaged
in business at any place for which admissions are charged, or at any cabaret
whether or not admissions are charged, the person engaging the transient
taxpayer shall collect from the transient taxpayer, by withholding or
otherwise, the tax levied by this chapter on the transient taxpayer, shall hold
the tax in trust for the State, and shall return and pay over the tax to the
proper collecting officer of the State in the manner and at the time required
by this chapter, for the account of the transient taxpayer. If the person
fails to do so, the person shall be liable to pay to the State the amount of
the tax levied by this chapter on the transient taxpayer, together with
penalties and interest as provided by law. The amount of the liability may be
collected from the guarantee fund, if any, or may be assessed against and
collected from the person so becoming liable in the same manner as if the tax
had been levied upon the person.