Exempts from the general excise tax gross proceeds derived from fundraisers by nonprofit entities, up to an unspecified amount of annual proceeds.

A BILL FOR AN ACT

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-   Additional amounts not taxable for nonprofit organizations. (a) In addition to the amounts not taxable under section 237-24, this chapter shall not apply to amounts received by an organization incorporated under chapter 414D from fundraisers, if the total amount raised in a taxable year does not exceed $          .

(b) For purposes of this section, "fundraiser" means any function, event, or sale of items that is intended or designed, directly or indirectly, to raise funds for the purpose of the corporation, excluding raising funds to pay expenses of the corporation. Any donation to the corporation shall be considered an amount raised by fundraising unless specifically designated and used for the expenses of the corporation."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2005.