Report Title:
GE Tax; Nonprofits
Description:
Simplifies the application process for nonprofit organizations seeking exemption from the payment of GE taxes and reduces the filing burden for these organizations. (SD1)
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THE SENATE |
S.B. NO. |
1193 |
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TWENTY-FIRST LEGISLATURE, 2001 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to general excise tax on nonprofit organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 237-23, Hawaii Revised Statutes, is amended by amending subsections (b), (c), and (d) to read as follows:
"(b) The exemptions enumerated in subsection (a)(3) to (6) shall apply only:
(1) To those persons who shall have registered with the department of taxation by filing a written application for registration in such form as the department shall prescribe, shall have paid the registration fee of $20, and shall have had the exemption allowed by the department or by a court or tribunal of competent jurisdiction upon appeal from any assessment resulting from disallowance of the exemption by the department; [and]
(2) To activities from which no profit inures to the benefit of any private stockholder or individual, except for death or other benefits to the members of fraternal societies; and
(3) To the fraternal, religious, charitable, scientific, educational, communal, or social welfare activities of such persons, or to the activities of such hospitals, infirmaries, and sanitaria as such, and not to any activity the primary purpose of which is to produce income even though the income is to be used for or in furtherance of the exempt activities of such persons.
(c) In order to obtain allowance of an exemption, a person under subsection (a)(3) to (6) shall either:
(1) Register with the department by filing a statement attaching a copy of the exemption received by the person, the application of the person for recognition of tax exempt status, or a copy of a group exemption letter received by the person covered by the group exemption, under section 501(c)(3), (4), (6), or (8) of the Internal Revenue Code of 1986, as amended, and any particular facts that the department may require of the person, or
(2) File an application for exemption [shall be filed] in the form of an affidavit or affidavits setting forth in general all facts affecting the right to the exemption and such particular facts as the department may require, to which shall be attached such records, papers, and other information as the department may prescribe.
[The] (d) For all persons, the statement registering the person with the department or application for exemption shall be filed on or before March 31 of the first year of registration or within three months after the commencement of business. In the event of allowance of the exemption no further statement or application therefor need be filed unless there is a material change in the facts. In the event of disallowance of the exemption, a license may be obtained upon payment of the required fee as provided by section 237-9, less the $20 already paid under this section, which shall be credited thereon. In the event the registrant has a license under this chapter no further fee shall be required for registration under this section.
[(d)] (e) The department for good cause may extend the time for registration or the time for filing an application for exemption[, but the extension or extensions shall not aggregate more than a total of two months]."
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.