Report Title:
Investment Securities; Broker and Agent; General Excise Tax
Description:
Requires an investment broker and agent who share compensation for their services to pay the general excise tax for only that portion of the compensation retained by each. (SD1)
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THE SENATE |
S.B. NO. |
2499 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO GENERAL EXCISE TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 237-18, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Where [insurance] the following professionals:
(1) Insurance agents, including general agents, subagents, or solicitors, who are not employees and are licensed pursuant to chapter 431[, or real];
(2) Real estate brokers or salespersons, who are not employees and are licensed pursuant to chapter 467[,]; or
(3) Investment securities brokers, or "broker" as that term is defined under section 490:8-102, or agents, who are not employees and who provide services pursuant to chapter 490, article 8,
produce commissions [which] that are divided between [such] insurance general agents, subagents, or solicitors[, or between such]; real estate brokers [or] and salespersons[,]; or investment securities brokers and agents, as the case may be, the tax levied under section 237-13(6) as to real estate brokers or salespersons[,] and investment securities brokers or agents, or under section 237-13(7) as to insurance general agents, subagents, or solicitors shall apply to each such person with respect to the person's portion of the commissions, and no more."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2005.