HOUSE OF REPRESENTATIVES

H.B. NO.

178

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO GENERAL EXCISE TAX.

 

 

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

 


     SECTION 1.  The purpose of this Act is to completely exempt from general excise taxes all income received by hospitals, infirmaries, and sanitaria without exception.

     SECTION 2.  Section 237-23, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  The exemptions enumerated in subsection (a)(3) to [(6)] (5) shall apply only:

     (1)  To those persons who shall have registered with the department of taxation by filing a written application for registration in such form as the department shall prescribe, shall have paid the registration fee of $20, and shall have had the exemption allowed by the department or by a court or tribunal of competent jurisdiction upon appeal from any assessment resulting from disallowance of the exemption by the department;

     (2)  To activities from which no profit inures to the benefit of any private stockholder or individual, except for death or other benefits to the members of fraternal societies; and

     (3)  To the fraternal, religious, charitable, scientific, educational, communal, or social welfare activities of such persons, [or to the activities of such hospitals, infirmaries, and sanitaria as such,] and not to any activity the primary purpose of which is to produce income even though the income is to be used for or in furtherance of the exempt activities of such persons.

     (c)  To obtain allowance of an exemption:

     (1)  A person under subsection (a)(3) to [(6)] (5), who has received or applied for recognition of tax exempt status under section 501(c)(3), (4), (6), or (8) of the Internal Revenue Code of 1986, as amended, or who is a subordinate person of a person who has received a group exemption letter under section 501(c)(3), (4), (6), or (8) of the Internal Revenue Code of 1986, as amended, shall register with the department by filing a statement attaching a copy of the exemption or application for recognition of exempt status and any particular facts that the department may require; and

     (2)  All other persons under subsection (a)(3) to [(6)] (5) shall file an application for exemption in the form of an affidavit or affidavits setting forth in general all facts affecting the right to the exemption and such particular facts as the department may require, to which shall be attached such records, papers, and other information as the department may prescribe."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

General Excise Tax; Exemption For Activities Of Hospitals, Infirmaries, and Sanitaria

 

Description:

Removes limitations on the general excise tax exemption provided for hospitals, infirmaries, and sanitaria.

 

 

 

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