S.B. 2112 Summary

• Exempts fundraising income of tax-exempt charitable, religious, and educational organizations from Hawaii's general excise tax, while retaining the tax on unrelated business taxable income as defined under Internal Revenue Code Section 512.

• Removes language prohibiting exemption for activities with a primary purpose of producing income, replacing it with a specific carve-out for unrelated business taxable income.

• Applies to gross receipts received after December 31, 2020.

• Effective date is July 1, 2050.