HB847

HOUSE OF REPRESENTATIVES	H.B. NO.	847
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. Section 237-23, Hawaii Revised Statutes, is amended by amending subsection (b) 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;

(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[.]; provided that the income produced from activities by charitable organizations exempted under section 501(c)(3), (4), (6), or (8) of the Internal Revenue Code of 1986, as amended, shall be exempted from this chapter."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2007 and shall apply to taxable years beginning after December 31, 2006.

INTRODUCED BY:	_____________________________