THE SENATE |
S.B. NO. |
1199 |
THIRTY-FIRST LEGISLATURE, 2021 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAX REPORTING.
BE IT ENACTED
BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 237-30.5, Hawaii Revised Statutes, is
amended to read as follows:
"[[]§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 such 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
which 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 as such 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
such 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 such form for the taxable year 1983. The person also
shall notify the owner that such information is being furnished and give the owner
a copy of the notice required by subsection (b).] (a)
On or before January 31 of each year, every person who has collected rent
during the previous calendar year on behalf of an owner or lessor of real property
located within the State shall provide the department with the following information,
on a form prescribed by the department:
(1) Name of the owner
or lessor;
(2) Address of the owner
or lessor;
(3) Social security
number or federal employer identification number of the owner or lessor;
(4) General excise tax
number of the owner or lessor; and
(5) Total amount of
rent collected
for real property located within the State, by county, on behalf of the owner or
lessor during the previous calendar year.
The person shall also
provide to the owner or lessor, on or before January 31 of each year, a copy of
the information furnished to the department and the following notice in writing:
"HAWAII GENERAL EXCISE TAXES MUST BE PAID ON THE
GROSS RENTS COLLECTED BY ANY PERSON RENTING REAL PROPERTY IN THE STATE OF HAWAII. A FORM WITH YOUR NAME, ADDRESS, SOCIAL SECURITY
OR FEDERAL EMPLOYER IDENTIFICATION NUMBER, GENERAL EXCISE TAX LICENSE NUMBER, AND
THE AMOUNT OF RENT COLLECTED ON YOUR BEHALF HAS BEEN OR WILL BE FILED WITH THE HAWAII
DEPARTMENT OF TAXATION."
SECTION 2. Section 237D-8.5, Hawaii Revised Statutes, is
amended to read as follows:
"[[]§237D-8.5[]] Collection of rental by third party; filing with
department; statement required.
[(a) Every person authorized under
an agreement by the owner of transient accommodations located within this State
to collect rent on behalf of such 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 or federal
identification number, and, if available, the general excise tax license and transient
accommodations tax registration numbers of the owner of the transient accommodations
being rented, the address of the property being rented, and the following statement
which shall be set forth in bold print and in ten-point type size:
"HAWAII TRANSIENT
ACCOMMODATIONS TAXES MUST BE PAID ON THE GROSS RENTS COLLECTED BY ANY PERSON RENTING
TRANSIENT ACCOMMODATIONS 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. The statement required by this
subsection may be combined with the statement required under section 237-30.5 by
adding in bold print and in ten-point type size to the front of the statement in
section 237-30.5 the following:
"HAWAII TRANSIENT
ACCOMMODATIONS TAXES AND".
(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 ninety days after June 9, 1988, or 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 or federal identification
number, and, if available, the general excise tax license and transient accommodations
tax registration numbers of the owner of such property being rented with the department
of taxation at the same time as such forms must be filed with the Internal Revenue
Service for the applicable tax year. The
person also shall notify the owner that such information is being furnished and
give the owner a copy of the notice required by subsection (b).
(d) If a person complies with the provisions of this
section, the person shall be deemed to have complied with section 237-30.5.]
(a) On or before January 31 of each year,
every person who has collected gross rental proceeds during the previous calendar
year on behalf of an operator of a transient accommodation located within the State
shall provide the department with the following information, on a form prescribed
by the department:
(1) Name of the operator;
(2) Address of the operator;
(3) Social security
number or federal employer identification number of the operator;
(4) Transient accommodations
tax registration identification number of the operator; and
(5) Total amount of
gross rental proceeds collected for transient accommodations located within the State,
by county, on behalf of the operator during the previous calendar year.
The person shall also
provide to the operator, on or before January 31 of each year, a copy of the information
furnished to the department and the following notice in writing:
"TRANSIENT ACCOMMODATIONS
TAXES MUST BE PAID ON THE GROSS RENTAL PROCEEDS COLLECTED BY ANY PERSON FURNISHING
TRANSIENT ACCOMMODATIONS IN THE STATE OF HAWAII. A FORM WITH YOUR NAME, ADDRESS, SOCIAL SECURITY
OR FEDERAL IDENTIFICATION NUMBER, TRANSIENT ACCOMMODATIONS TAX REGISTRATION IDENTIFICATION
NUMBER, AND THE AMOUNT OF GROSS RENTAL PROCEEDS COLLECTED ON YOUR BEHALF HAS BEEN
OR WILL BE FILED WITH THE HAWAII DEPARTMENT OF TAXATION."
(b) Any person who fails to comply with this section
shall be fined, for each operator for which the person has failed to provide any
of the information required under subsection (a), $500 for each month or fraction
thereof that the failure continues, unless it is shown that the failure is due to
reasonable cause and not neglect.
(c) The penalty provided under this section and section
237-30.5 shall not both be applied to the same failure to comply."
SECTION 3. This Act does not affect rights and duties that
matured, penalties
that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Required Information on Rent Collected on Behalf of an Owner of Real Property; Related Penalties
Description:
Revises the manner in which person authorized to collect rent provides information to the Department of Taxation and requires (as opposed to permits) them to report the total amount of rent collected under sections 237-30.5 and 237D-8.5, Hawaii Revised Statutes.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.