STAND. COM. REP. NO. 1818-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3201

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 3201, S.D. 1, H.D. 1, entitled:

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

begs leave to report as follows:

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 received testimony in support of this measure from PHOCUSED; Hawaii Substance Abuse Coalition; Coalition for a Drug-Free Hawaii; Hawaiian Humane Society; HT Hayashi Foundation; Outrigger Duke Kahanamoku Foundation; Pacific & Asian Affairs Council; Kumukahi Health + Wellness; Kua‘āina Ulu ‘Auamo; Big Brothers Big Sisters Hawaii; Hanalei Watershed Hui; Hawai‘i Alliance of Nonprofit Organizations; Habilitat, Inc.; Molokai Arts Center; Hawaii Youth Services Network; Hawai‘i Pacific Health; Nā Hale O Maui; Hawaii Children's Cancer Foundation; Aloha Diaper Bank; Hawaii Children's Action Network Speaks!; Hawai‘i Health & Harm Reduction Center; and six individuals. Your Committee received comments on this measure from the Department of Taxation, Department of Budget and Finance, and Tax Foundation of Hawaii.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3201, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair