REPORT TITLE: 
GET; PTSA/PTSO 
DESCRIPTION:
Exempts from the general excise tax, any purchase, including
purchase for resale, sale, or use of goods and services by a
public school PTSA/PTSO.

 
HB HMIA 2000-55
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2382
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO EXEMPTIONS FROM THE GENERAL EXCISE TAX FOR PUBLIC
   SCHOOLS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:


 1      SECTION 1.  The condition of our public schools are in
 
 2 deplorable condition because of continuously declining
 
 3 appropriations.  Year after year, a smaller portion of the
 
 4 department of education budget is earmarked for the construction,
 
 5 repair or maintenance of school facilities and equipment.
 
 6      With the State's depressed economy and continual declining
 
 7 resources, our children are faced with learning in environments
 
 8 that are often substandard, unhealthy, and unsafe unless we
 
 9 encourage the help of the private sector.
 
10      Public schools already have a mechanism for raising funds to
 
11 maintain school infrastructure --the PTSA/PTSO.
 
12      If the State cannot appropriate more funds for public school
 
13 infrastructure and equipment, the State should give public
 
14 service organizations, such as the PTSA/PTSO, tax breaks and
 
15 other incentives to encourage help from the private sector.
 
16      The purpose of this Act is to encourage fundraising and the
 
17 purchase and use of goods and services for building or improving
 
18 public schools by exempting from the general excise tax, proceeds
 
19 from fundraising activities and the purchase goods or services
 

HB HMIA 2000-55
Page 2                                                     2382
                                     H.B. NO.           
                                                        
                                                        

 
 1 for donation to DOE for the benefit of public schools.
 
 2      SECTION 2.  Section 237-24.3, Hawaii Revised statutes, is
 
 3 amended to read as follows:
 
 4      "§237-24.3  Additional amounts not taxable.  In addition to
 
 5 the amounts not taxable under section 237-24, this chapter shall
 
 6 not apply to:
 
 7      (1)  Amounts received from the loading, transportation, and
 
 8           unloading of agricultural commodities shipped for a
 
 9           producer or produce dealer on one island of this State
 
10           to a person, firm, or organization on another island of
 
11           this State.  The terms "agricultural commodity",
 
12           "producer", and "produce dealer" shall be defined in
 
13           the same manner as they are defined in section 147-1;
 
14           provided that agricultural commodities need not have
 
15           been produced in the State;
 
16      (2)  Amounts received from sales of:
 
17           (A)  Intoxicating liquor as the term "liquor" is
 
18                defined in chapter 244D;
 
19           (B)  Cigarettes and tobacco products as defined in
 
20                chapter 245; and
 
21           (C)  Agricultural, meat, or fish products grown,
 
22                raised, or caught in Hawaii, to any person or
 
23                common carrier in interstate or foreign commerce,
 

 
HB HMIA 2000-55
Page 3                                                     2382
                                     H.B. NO.           
                                                        
                                                        

 
 1                or both, whether ocean-going or air, for
 
 2                consumption out-of-state on the shipper's vessels
 
 3                or airplanes;
 
 4      (3)  Amounts received by the manager or board of directors
 
 5           of:
 
 6           (A)  An association of apartment owners of a
 
 7                condominium property regime established in
 
 8                accordance with chapter 514A; or
 
 9           (B)  A nonprofit homeowners or community association
 
10                incorporated in accordance with chapter 415B or
 
11                any predecessor thereto and existing pursuant to
 
12                covenants running with the land,
 
13           in reimbursement of sums paid for common expenses;
 
14      (4)  Amounts received or accrued from:
 
15           (A)  The loading or unloading of cargo from ships,
 
16                barges, vessels, or aircraft, whether or not the
 
17                ships, barges, vessels, or aircraft travel between
 
18                the State and other states or countries or between
 
19                the islands of the State;
 
20           (B)  Tugboat services including pilotage fees performed
 
21                within the State, and the towage of ships, barges,
 
22                or vessels in and out of state harbors, or from
 
23                one pier to another; and
 

 
HB HMIA 2000-55
Page 4                                                     2382
                                     H.B. NO.           
                                                        
                                                        

 
 1           (C)  The transportation of pilots or governmental
 
 2                officials to ships, barges, or vessels offshore;
 
 3                rigging gear; checking freight and similar
 
 4                services; standby charges; and use of moorings and
 
 5                running mooring lines;
 
 6      (5)  Amounts received by an employee benefit plan by way of
 
 7           contributions, dividends, interest, and other income;
 
 8           and amounts received by a nonprofit organization or
 
 9           office, as payments for costs and expenses incurred for
 
10           the administration of an employee benefit plan;
 
11           provided that this exemption shall not apply to any
 
12           gross rental income or gross rental proceeds received
 
13           after June 30, 1994, as income from investments in real
 
14           property in this State; and provided further that gross
 
15           rental income or gross rental proceeds from investments
 
16           in real property received by an employee benefit plan
 
17           after June 30, 1994, under written contracts executed
 
18           prior to July 1, 1994, shall not be taxed until the
 
19           contracts are renegotiated, renewed, or extended, or
 
20           until after December 31, 1998, whichever is earlier.
 
21           For the purposes of this paragraph, "employee benefit
 
22           plan" means any plan as defined in section 1002(3) of
 
23           title 29 of the United States Code, as amended;
 

 
HB HMIA 2000-55
Page 5                                                     2382
                                     H.B. NO.           
                                                        
                                                        

 
 1      (6)  Amounts received for purchases made with United States
 
 2           Department of Agriculture food coupons under the
 
 3           federal food stamp program, and amounts received for
 
 4           purchases made with United States Department of
 
 5           Agriculture food vouchers under the Special
 
 6           Supplemental Foods Program for Women, Infants and
 
 7           Children;
 
 8      (7)  Amounts received by a hospital, infirmary, medical
 
 9           clinic, health care facility, pharmacy, or a
 
10           practitioner licensed to administer the drug to an
 
11           individual for selling prescription drugs or prosthetic
 
12           devices to an individual; provided that this paragraph
 
13           shall not apply to any amounts received for services
 
14           provided in selling prescription drugs or prosthetic
 
15           devices.  As used in this paragraph:
 
16           (A)  "Prescription drugs" are those drugs defined under
 
17                section [328-1] and dispensed by filling or
 
18                refilling a written or oral prescription by a
 
19                practitioner licensed under law to administer the
 
20                drug and sold by a licensed pharmacist under
 
21                section 328-16 or practitioners licensed to
 
22                administer drugs; and
 
23           (B)  "Prosthetic device" means any artificial device or
 

 
HB HMIA 2000-55
Page 6                                                     2382
                                     H.B. NO.           
                                                        
                                                        

 
 1                appliance, instrument, apparatus, or contrivance,
 
 2                including their components, parts, accessories,
 
 3                and replacements thereof, used to replace a
 
 4                missing or surgically removed part of the human
 
 5                body, which is prescribed by a licensed
 
 6                practitioner of medicine, osteopathy, or podiatry
 
 7                and which is sold by the practitioner or which is
 
 8                dispensed and sold by a dealer of prosthetic
 
 9                devices; provided that "prosthetic device" shall
 
10                not mean any auditory, ophthalmic, dental, or
 
11                ocular device or appliance, instrument, apparatus,
 
12                or contrivance;
 
13      (8)  Taxes on transient accommodations imposed by chapter
 
14           237D and passed on and collected by operators holding
 
15           certificates of registration under that chapter;
 
16      (9)  Amounts received as dues by an unincorporated merchants
 
17           association from its membership for advertising media,
 
18           promotional, and advertising costs for the promotion of
 
19           the association for the benefit of its members as a
 
20           whole and not for the benefit of an individual member
 
21           or group of members less than the entire membership;
 
22           and
 
23     (10)  Amounts received by a labor organization for real
 

 
HB HMIA 2000-55
Page 7                                                     2382
                                     H.B. NO.           
                                                        
                                                        

 
 1           property leased to:
 
 2           (A)  A labor organization; or
 
 3           (B)  A trust fund established by a labor organization
 
 4                for the benefit of its members, families, and
 
 5                dependents for medical or hospital care, pensions
 
 6                on retirement or death of employees,
 
 7                apprenticeship and training, and other membership
 
 8                service programs.
 
 9           As used in this paragraph, "labor organization" means a
 
10           labor organization exempt from federal income tax under
 
11           section 501(c)(5) of the Internal Revenue Code, as
 
12           amended. 
 
13      (11) Any purchase, including purchase for resale, sale, or
 
14           use of goods or services by any public school parent-
 
15           teacher-student association (PTSA) or any public school
 
16           parent-teacher-student organization (PTSO).
 
17      SECTION 3.  New statutory material is underscored.
 
18      SECTION 4.  This Act shall take effect on July 1, 2000.
 
19 
 
20 
 
21                         INTRODUCED BY:___________________________
 

 
HB HMIA 2000-55