HI SB3201

Exempts fundraising income of tax-exempt nonprofit organizations from Hawaii's general excise tax, aligning state law with federal income tax treatment.

Removes the previous language excluding activities whose "primary purpose is to produce income" and replaces it with a reference to "unrelated trade or business" as defined in the Internal Revenue Code Section 513.

Retains general excise tax on gross income derived from unrelated trade or business activities of nonprofit organizations, excluding fundraising income from this taxation.

Specifies that modifications to unrelated business taxable income under Internal Revenue Code Section 512(b) shall not apply when determining whether an activity qualifies as unrelated trade or business.

Takes effect January 1, 2023, with a sunset provision that repeals the Act on December 31, 2027, unless extended by the legislature.