THE SENATE                           S.C.R. NO.            124
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING THE GOVERNOR TO SUPPORT LEGISLATION TO EXEMPT
    NON-PROFIT SCHOOL ORGANIZATIONS FROM THE GENERAL EXCISE
    TAX WHEN FUNDRAISING IN THE FURTHERANCE OF EDUCATIONAL
    PROGRAMS IN THE SCHOOLS.



 1        WHEREAS, the general excise tax (GET) is a tax imposed on
 2   business activity in the State of Hawaii; and 
 3   
 4        WHEREAS, the general excise tax is a business privilege
 5   tax which applies at different rates to gross receipts from
 6   most business activities conducted in Hawaii, from
 7   manufacturing, to wholesaling, and finally to the retail sale;
 8   and 
 9   
10        WHEREAS, Section 237-23(a)(5), Hawaii Revised Statutes
11   (HRS), exempts non-profit school organizations that operate
12   "exclusively for the benefit of the community and for the
13   promotion of social welfare" from the GET; and 
14   
15        WHEREAS, despite this provision in the law, Section
16   237-23(b)(3) does not exempt a non-profit organization's
17   activity in which "the primary purpose of which is to produce
18   income"; and 
19   
20        WHEREAS, therefore, a non-profit organization's
21   fundraising is subject to the GET; and
22   
23        WHEREAS, non-profit public school related organizations
24   have been created to specifically supplement educational
25   program needs which otherwise would be funded by general excise
26   tax revenues; and 
27   
28        WHEREAS, in tight economic times, less general funds for
29   public educational programs are available, yet, students,
30   parents, educators and community residents are willing to
31   fundraise for public educational programs; and 
32   
33        WHEREAS, these non-profit groups designate in their budget
34   and devote 100% of the revenues of these fundraising projects

 
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                                  S.C.R. NO.            124
                                                        
                                                        


 1   to public school educational needs by purchasing educational
 2   equipment, programs, and supplies; now, therefore,
 3   
 4        BE IT RESOLVED by the Senate of the Twentieth Legislature
 5   of the State of Hawaii, Regular Session of 1999, the House of
 6   Representatives concurring, that the Governor is urged to
 7   support legislation to exempt non-profit organizations that
 8   fundraise in order to benefit or assist public schools; and 
 9   
10        BE IT FURTHER RESOLVED that certified copies of this
11   Concurrent Resolution be transmitted to the Governor, the
12   President of the Hawaii State Parents, Teachers and Students
13   Association, the President of the Hawaii State Teachers
14   Association, the President of the Hawaii Government Employees
15   Association, the Chairperson of the Board of Education, and the
16   Superintendent of Education.
17 
18 
19 
20                         OFFERED BY:  ____________________________