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 on only that portion of the compensation retained by each.  Effective 7/1/2007. (SD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	92
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

RELATING TO THE 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 agents, including general agents, subagents, or solicitors,] commissions are produced by:

(1) Insurance producers 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[, produce]; or

(3) Securities professionals, including brokers, dealers, salespersons, and investment advisers, who are not employees and are licensed pursuant to chapter 485 or applicable federal securities laws,

and the commissions [which] are divided between [such general agents, subagents, or solicitors, or between such] those insurance producers, or real estate brokers [or] and salespersons, or securities professionals, as the case may be, the tax levied under section 237-13(6) as to real estate brokers or salespersons[,] and securities professionals, or under section 237‑13(7) as to insurance [general agents, subagents, or solicitors] producers, 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  Statutory material to be repealed is bracketed and stricken.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 on July 1, 2007 and shall apply to gross income or gross proceeds received after June 30, 2007.