§233-2 Same: application of taxes. In the event of the adoption of a rule or regulation pursuant to section 233-1:
(1) The person, firm, corporation, or the like, who is the subject of the rule or regulation and thereafter engages or continues in the business of selling tangible personal property shall be:
(A) Deemed to be selling the property to the persons or entities who would be the buyers if, in fact, the representatives, distributors, dealers, salespersons, peddlers, canvassers, carriers, truckers, or the like were employees;
(B) Deemed to be the employer of the persons classed by the rule or regulation as employees; and
(C) Subject to all of the liabilities, duties, and obligations of the sellers and employers under the tax laws administered by the department of taxation;
(2) The persons so classed as employees shall:
(A) Not be deemed to be buying the property or reselling the property;
(B) Be deemed to be the employees of the person so deemed an employer; and
(C) Be subject to all of the liabilities, duties, and obligations of employees, under the tax laws administered by the department; and
(3) The rule or regulation of the department shall:
(A) Provide for the collection, in lieu of withholding, of taxes levied upon the persons so classed as employees in cases in which the persons themselves retain, from receipts handled by them, their fees, charges, commissions, markups, percentages, or other remuneration;
(B) Designate the fees, charges, commissions, markups, percentages, or other remuneration constituting the taxable compensation of the persons classed as employees; and
(C) Contain other provisions that may be necessary or proper to effectuate this chapter. [L 1955, c 195, §2; ree L 1959, c 277, §5(a); am L Sp 1959 2d, c 1, §16; Supp, §117A-2; HRS §233-2; gen ch 1993; am L 2017, c 12, §38]