228
HOUSE OF REPRESENTATIVES             H.C.R. NO.            
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     HOUSE  CONCURRENT
                        RESOLUTION

  REQUESTING THE AUDITOR TO STUDY THE FEASIBILITY OF EXEMPTING
    SCHOOL GROUPS FROM THE GENERAL EXCISE TAX LAW.


 1        WHEREAS, in chapter 237, Hawaii Revised Statutes, the
 2   State of Hawaii imposes a general excise tax for the privilege
 3   of doing business in Hawaii, and this broad based tax provides
 4   a substantial portion of the state revenues annually; and
 5   
 6        WHEREAS, in section 237-23(a), Hawaii Revised Statutes,
 7   many school groups would be exempt from the tax, but the
 8   limitations to that exemption under section 237-23(b), Hawaii
 9   Revised Statutes, render most school group revenue-producing
10   activities outside the allowed exemption and therefore, taxable
11   under current general excise tax law; and
12   
13        WHEREAS, the Legislature believes that these school groups
14   working to support the schools with fundraising events that
15   provide much needed resources for the education of the children
16   of Hawaii are essential to the success of the educational
17   experience; and
18   
19        WHEREAS, the Legislature would like to provide additional
20   support to these groups and at the same time is mindful of the
21   effects that a full exemption may have on the state budget;
22   now, therefore,
23   
24        BE IT RESOLVED by the House of Representatives of the
25   Twentieth Legislature of the State of Hawaii, Regular Session
26   of 1999, the Senate concurring, that the Auditor with the
27   assistance of the Department of Taxation is requested to study
28   the feasibility of exempting school groups from all general
29   excise taxes, including:
30   
31        (1)  A determination of the cost to the general fund;
32   
33        (2)  Any other costs to the State;
34   
35        (3)  The difficulties of exempting school groups; and
36   

 
Page 2                                                     228
                                  H.C.R. NO.            
                                                        
                                                        

 
 1        (4)  The benefits of exempting school groups;
 2   
 3   and
 4   
 5        BE IT FURTHER RESOLVED that the Auditor is requested to
 6   report findings and recommendations to the Legislature not
 7   later than twenty days before the convening of the Regular
 8   Session of 2000; and
 9   
10        BE IT FURTHER RESOLVED that certified copies of this
11   Concurrent Resolution be transmitted to the Auditor and the
12   Director of Taxation.
13 
14 
15 
16                         OFFERED BY:  ____________________________