HAR §13-256-7. Business transfer fee

(a) Whenever a stockholder or owner of an interest in a corporation or other business which has been issued a commercial use permit sells or transfers stock or interest in the corporation, either as a single transaction or as aggregate of several transactions, to any person or business entity who is not a stockholder or owner of record on February 24, 1994, the seller or person transferring such stock or interest shall pay to the department a business transfer fee which is the greater of: (1) Two per cent of the gross receipts which are directly attributable to the use of the commercial use permit issued by the department for the twelve month period prior to the date of sale; or (2) Ten per cent of the net value of the sale of the stock or interest in the business as determined by the difference between the sale price and an equal percentage of the appraised value of the assets of the business. (b) The value of the stock or interest 256-14 Unofficial Compilation transferred shall be as mutually agreed to by the seller and the department. In the case of a business which engages in more than one type of business activity, only the value of the business activity which is dependent upon the possession and use of the commercial use permit shall be considered for the purposes of this section. In those cases where the transfer is made for consideration other than legal tender, the appraised or market value of the item of consideration given in exchange for the interest in the business shall be used. (c) If the seller and the department are unable to agree on the value of the interest transferred, that value shall be determined through arbitration by an independent party acceptable to both the seller and the department. The cost of the arbitration shall be borne by the party in whose favor the final value is determined. [Eff 2/24/94; am 12/31/18] (Auth: HRS §§200-2, 200-3, 200-4) (Imp: HRS §§200-2, 200-3, 200- 4) §13-256-8 Owner required to report change in ownership, address and other changes. In addition to the provisions in section 13-251-44, the holder of any commercial use permit issued under this chapter shall notify the department in writing within seven days if: (1) The owner no longer has possession of the permitted vessel or water sports equipment; or (2) All or any interest in the permitted vessels or water sports equipment is transferred to or assigned to another person or business entity as defined in these rules; or (3) The owner's address or telephone number changes. [Eff 2/24/94; am 12/31/18] (Auth: HRS §§200-2, 200-3, 200-4, 200-22, 200-24) (Imp: HRS §§200-2, 200-3, 200-4, 200-22, 200-24) 256-15 Unofficial Compilation