Bill > HB1437

This bill establishes a general excise tax (GET) exemption for sales made by nonprofit schools or their student activity groups, provided that the sales benefit the school. Specifically, the bill defines a "nonprofit school" as an organization recognized by the Internal Revenue Service as a tax-exempt charitable educational organization under section 501(c)(3), and registered with the state tax department. The bill also broadly defines "nonprofit school-sponsored student activity groups" to include student government, athletic teams, performing arts groups, clubs, honor societies, and other student organizations under the school's control. To qualify for the tax exemption, all proceeds from the sale (minus the actual cost of the commodity or service) must be donated to the school and used exclusively to further its tax-exempt educational purpose. This means that fundraising activities by schools or student groups, such as bake sales, car washes, or merchandise sales, would be exempt from general excise tax. The bill is set to take effect on January 1, 3000, which appears to be a placeholder date typically used when the exact implementation date is not yet determined.

Budget and Finance, Education

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1437&year=2026