HRS § 237D-1 — Definitions


§237D-1 Definitions. Whenever used in
this chapter, unless the context otherwise requires:
"Cruise fare" means the total amount
paid by a transient for a cruise ship cabin on a cruise ship, inclusive of any
mandatory fees imposed by a cruise ship operator, owner, or representative
thereof on a transient for the use of shipboard services, facilities, meals,
and onboard entertainment, but does not include optional charges for shipboard
services, meals, excursions, and onboard entertainment beyond the mandatory fee
amount.
"Cruise ship" means any ship that
docks at any port in the State that charges a fee for and provides cruise ship
cabins to transients.
"Cruise ship cabin" means an
accommodation or living quarter on a cruise ship that is provided to a
transient.
"Department" means the department of
taxation.
"Fair market rental value" means an
amount equal to one-half of the gross daily maintenance fees that are paid by
the owner and are attributable to the time share unit located in Hawaii. Gross
daily maintenance fees include maintenance costs, operational costs, insurance,
repair costs, administrative costs, taxes, other than transient accommodations
taxes, resort fees, and other costs including payments required for reserves or
sinking funds. Amounts paid for optional goods and services such as food and beverage
services or beach chair or umbrella rentals shall be excluded from fair market
rental value.
"Gross rental" or "gross rental
proceeds" means the gross receipts, cash or accrued, of the taxpayer
received as compensation for the furnishing of transient accommodations or
entering into arrangements to furnish transient accommodations and the value
proceeding or accruing from the furnishing of transient accommodations or
entering into arrangements to furnish transient accommodations, including
resort fees without any deductions on account of the cost of property or
services sold, the cost of materials used, labor cost, taxes, royalties,
interest, discounts, or any other expenses whatsoever. "Gross
rental" or "gross rental proceeds" includes the gross receipts
derived from cruise fares. Every taxpayer shall be presumed to be dealing on a
cash basis unless the taxpayer proves to the satisfaction of the department of
taxation that the taxpayer is dealing on an accrual basis and the taxpayer's
books are so kept, or unless the taxpayer employs or is required to employ the
accrual basis for the purposes of the tax imposed by chapter 237 for any
taxable year in which event the taxpayer shall report the taxpayer's gross
income for the purposes of this chapter on the accrual basis for the same
period.
The words "gross rental" or
"gross rental proceeds" shall not be construed to include the amounts
of taxes imposed by chapter 237 or this chapter on operators of transient
accommodations, transient accommodations brokers, travel agencies, and tour
packagers and passed on, collected, and received from the consumer as part of
the receipts received as compensation for the furnishing of transient
accommodations or entering into arrangements to furnish transient
accommodations.
Where transient accommodations are furnished
through arrangements made by a transient accommodations broker, travel agency,
or tour packager at noncommissionable negotiated contract rates and the gross
income is divided between the operator of transient accommodations on the one
hand and the transient accommodations broker, travel agency, or tour packager
on the other hand, the tax imposed by this chapter shall apply to each operator
and transient accommodations broker, travel agency, or tour packager with
respect to that person's respective portion of the proceeds and no more.
For purposes of this definition, where the
operator maintains a schedule of rates for identifiable groups of individuals,
such as kamaainas, upon which the accommodations are leased, let, or rented,
gross rental or gross rental proceeds means the receipts collected and received
based upon the scheduled rates and recorded as receipts in its books and
records.
"Lease", "let", or "rental"
means the leasing or renting of living quarters or sleeping or housekeeping
accommodations in hotels, apartment hotels, motels, condominiums or units
defined in chapter 514B, cooperative apartments, rooming houses, or other
places in which lodgings are regularly furnished to transients for a
consideration, without transfer of the title of such property.
"Local contact" means an individual
residing on the same island as the transient accommodation or resort time share
vacation unit or an entity with a place of business and at least one employee,
officer, partner, member, or other person working on behalf of the company who
is residing on the same island as the transient accommodation or resort time
share vacation unit.
"Occupant" means an owner of a resort
time share vacation plan or other person occupying the resort time share
vacation unit.
"Operator" means any person operating
a transient accommodation, whether as owner or proprietor or as lessee,
sublessee, mortgagee in possession, licensee, or otherwise, or engaging or
continuing in any service business which involves the actual furnishing of transient
accommodation.
"Owner" means any person who owns a
resort time share vacation interest; provided that to the extent and for those
purposes provided in an agreement of sale, the vendee under the agreement of
sale shall be considered the owner of the resort time share vacation interest.
"Plan manager" means a person who
undertakes the duties, responsibilities, and obligations of managing a resort
time share vacation plan or is required to act for a resort time share vacation
plan under this chapter.
"Resort fee" means any mandatory
charge or surcharge imposed by an operator, owner, or representative thereof to
a transient for the use of the transient accommodation's property, services, or
amenities.
"Resort time share vacation interest"
means any interest in a resort time share vacation unit or plan which entitles
the owner thereof to the use, occupancy, or possession of a resort time share
vacation unit on a periodically recurring basis.
"Resort time share vacation plan"
means any plan or program subject to chapter 514E in which the use, occupancy,
or possession of one or more resort time share vacation units circulates among
various persons for less than a sixty-day period in any year, for any
occupant. The term resort time share vacation plan includes both resort time
share vacation ownership plans and resort time share vacation use plans, as
follows:
(1) "Resort time share vacation ownership plan"
means any arrangement whether by tenancy in common, sale, deed, or by other
means, whereby the purchaser receives an ownership interest and the right to
use the property for a specific or discernible period by temporal division.
(2) "Resort time share vacation use plan"
means any arrangement, excluding normal hotel operations, whether by membership
agreement, lease, rental agreement, license, use agreement, security, or other
means, whereby the purchaser receives a right to use accommodations or
facilities, or both, in a resort time share vacation unit for a specific or
discernible period by temporal division, but does not receive an ownership
interest.
"Resort time share vacation unit"
means the actual and promised accommodations, and related facilities, which are
the subject of a resort time share vacation plan.
"Taxpayer"
means any person liable for any tax in this chapter.
"Transient accommodations" means the
furnishing of a room, apartment, suite, single family dwelling, shelter, or the
like to a transient for less than one hundred eighty consecutive days for each
letting in a hotel, apartment hotel, motel, condominium or unit as defined in
chapter 514B, cooperative apartment, vehicle equipped with or advertised as
including sleeping accommodations, dwelling unit, or rooming house that
provides living quarters, sleeping, or housekeeping accommodations, or other
place in which lodgings are regularly furnished to transients.
"Transient accommodations broker"
means any person or entity, including but not limited to persons who operate
online websites, online travel agencies, or online booking agencies, that
offers, lists, advertises, or accepts reservations or collects whole or partial
payment for transient accommodations or resort time share vacation interests,
units, or plans.