STAND. COM. REP. NO. 1027

Honolulu, Hawaii

, 2025

RE: H.B. No. 1437

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1437, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX EXEMPTIONS,"

begs leave to report as follows:

The purpose of this measure is to establish a general excise tax exemption on the gross proceeds or gross income received from sales of commodities or services that benefit nonprofit schools.

Your Committee received testimony in support of this measure from Maui Preparatory Academy; ʻIolani School; Hawaii Association of Independent Schools; Island School; Punahou School; Kauai Christian Academy; Waimea Country School; and three individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee has amended this measure by:

(1) Specifying that a nonprofit school be registered with and in possession of a tax clearance certificate from the Department of Taxation, rather than in good standing with the Department; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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 H.B. No. 1437, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1437, H.D. 2.

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

____________________________

KYLE T. YAMASHITA, Chair