CONFERENCE COMMITTEE REP. NO. 167-22

 

Honolulu, Hawaii

                 , 2022

 

RE:    S.B. No. 3201

       S.D. 1

       H.D. 1

       C.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

 

Sirs:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3201, S.D. 1, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO NONPROFIT ORGANIZATIONS,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to clarify the application of the general excise tax law with regard to gross income derived from unrelated trade or business activities of nonprofit organizations.

 

     Your Committee on Conference finds that, while the federal law is clear with an extensive body of statutory interpretation, nonconforming language used in the state general excise tax provision produces incongruities in how nonprofit activities are taxed.  This measure will simplify and improve a nonprofit organization's accounting of income and exempt fundraising income from the general excise tax.

 

     Your Committee on Conference has amended this measure by:

 

     (1)  Inserting an effective date of January 1, 2023; and

 

     (2)  Inserting a sunset date of December 31, 2027.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3201, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3201, S.D. 1, H.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

 

ON THE PART OF THE SENATE

 

____________________________

SEAN QUINLAN

Co-Chair

 

____________________________

LES IHARA, JR.

Chair

____________________________

LISA KITAGAWA

Co-Chair

 

____________________________

DRU KANUHA

Co-Chair

____________________________

DANIEL HOLT

Co-Chair