REPORT TITLE:
GET; Public School Exemptions


DESCRIPTION:
Exempts from the general excise tax all nonprofit groups
benefiting public elementary, intermediate or high schools.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           116
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
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                   A  BILL  FOR  AN  ACT

RELATING TO GENERAL EXCISE TAX.



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

 1      SECTION 1.  Section 237-24, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�237-24  Amounts not taxable.  This chapter shall not apply
 
 4 to the following amounts:
 
 5      (1)  Amounts received under life insurance policies and
 
 6           contracts paid by reason of the death of the insured;
 
 7      (2)  Amounts received (other than amounts paid by reason of
 
 8           death of the insured) under life insurance, endowment,
 
 9           or annuity contracts, either during the term or at
 
10           maturity or upon surrender of the contract;
 
11      (3)  Amounts received under any accident insurance or health
 
12           insurance policy or contract or under workers'
 
13           compensation acts or employers' liability acts, as
 
14           compensation for personal injuries, death, or sickness,
 
15           including also the amount of any damages or other
 
16           compensation received, whether as a result of action or
 
17           by private agreement between the parties on account of
 
18           the personal injuries, death, or sickness;
 
19      (4)  The value of all property of every kind and sort
 

 
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                                     S.B. NO.           116
                                                        
                                                        

 
 1           acquired by gift, bequest, or devise, and the value of
 
 2           all property acquired by descent or inheritance;
 
 3      (5)  Amounts received by any person as compensatory damages
 
 4           for any tort injury to the person, or to the person's
 
 5           character reputation, or received as compensatory
 
 6           damages for any tort injury to or destruction of
 
 7           property, whether as the result of action or by private
 
 8           agreement between the parties (provided that amounts
 
 9           received as punitive damages for tort injury or breach
 
10           of contract injury shall be included in gross income);
 
11      (6)  Amounts received as salaries or wages for services
 
12           rendered by an employee to an employer;
 
13      (7)  Amounts received as alimony and other similar payments
 
14           and settlements;
 
15      (8)  Amounts collected by distributors as fuel taxes on
 
16           "liquid fuel" imposed by chapter 243, and the amounts
 
17           collected by such distributors as a fuel tax imposed by
 
18           any Act of the Congress of the United States;
 
19      (9)  Taxes on liquor imposed by chapter 244D on dealers
 
20           holding permits under that chapter;
 
21     (10)  The amounts of taxes on cigarettes and tobacco products
 
22           imposed by chapter 245 on wholesalers or dealers
 

 
 
 
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                                     S.B. NO.           116
                                                        
                                                        

 
 1           holding licenses under that chapter and selling the
 
 2           products at wholesale;
 
 3     (11)  Federal excise taxes imposed on articles sold at retail
 
 4           and collected from the purchasers thereof and paid to
 
 5           the federal government by the retailer;
 
 6     (12)  The amounts of federal taxes under chapter 37 of the
 
 7           Internal Revenue Code, or similar federal taxes,
 
 8           imposed on sugar manufactured in the State, paid by the
 
 9           manufacturer to the federal government;
 
10     (13)  An amount up to, but not in excess of, $2,000 a year of
 
11           gross income received by any blind, deaf, or totally
 
12           disabled person engaging, or continuing, in any
 
13           business, trade, activity, occupation, or calling
 
14           within the State;
 
15     (14)  Amounts received by a producer of sugarcane from the
 
16           manufacturer to whom the producer sells the sugarcane,
 
17           where:
 
18           (A)  The producer is an independent cane farmer, so
 
19                classed by the Secretary of Agriculture under the
 
20                Sugar Act of 1948 (61 Stat. 922, Chapter 519) as
 
21                the Act may be amended or supplemented;
 
22           (B)  The value or gross proceeds of sale of the sugar,
 

 
 
 
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                                     S.B. NO.           116
                                                        
                                                        

 
 1                and other products manufactured from the
 
 2                sugarcane, is included in the measure of the tax
 
 3                levied on the manufacturer under section 237-13(1)
 
 4                or 237-13(2);
 
 5           (C)  The producer's gross proceeds of sales are
 
 6                dependent upon the actual value of the products
 
 7                manufactured therefrom or the average value of all
 
 8                similar products manufactured by the manufacturer;
 
 9                and
 
10           (D)  The producer's gross proceeds of sales are reduced
 
11                by reason of the tax on the value or sale of the
 
12                manufactured products;
 
13     (15)  Money paid by the State or eleemosynary child-placing
 
14           organizations to foster parents for their care of
 
15           children in foster homes; [and]
 
16     (16)  Amounts received by a cooperative housing corporation
 
17           from its shareholders in reimbursement of funds paid by
 
18           such corporation for lease rental, real property taxes,
 
19           and other expenses of operating and maintaining the
 
20           cooperative land and improvements; provided that such a
 
21           cooperative corporation is a corporation:
 
22           (A)  Having one and only one class of stock
 

 
 
 
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                                     S.B. NO.           116
                                                        
                                                        

 
 1                outstanding;
 
 2           (B)  Each of the stockholders of which is entitled
 
 3                solely by reason of the stockholder's ownership of
 
 4                stock in the corporation, to occupy for dwelling
 
 5                purposes a house, or an apartment in a building
 
 6                owned or leased by the corporation; and
 
 7           (C)  No stockholder of which is entitled (either
 
 8                conditionally or unconditionally) to receive any
 
 9                distribution not out of earnings and profits of
 
10                the corporation except in a complete or partial
 
11                liquidation of the corporation [.]; and
 
12     (17)  Amounts received by nonprofit associations exempt from
 
13           taxation under section 501(c)(3) of the Internal
 
14           Revenue Code of 1986, as amended, which both benefit
 
15           and assist public elementary, intermediate, and high
 
16           schools within the State."
 
17      SECTION 2.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 3.  This Act shall take effect on July 1, 1999.
 
20 
 
21                           INTRODUCED BY:  _______________________