HI HB798

Modifies the general excise tax (GET) exemption for nonprofit organizations by removing the "primary purpose is to produce income" language that previously disqualified activities from exemption.

Aligns Hawaii's GET exemption with federal income tax law by exempting fundraising income of tax-exempt nonprofit organizations from state taxation.

Retains the GET tax on gross income derived from "unrelated trade or business" as defined in Internal Revenue Code Section 513, ensuring nonprofits still pay tax on truly unrelated commercial activities.

Specifies that modifications to unrelated business taxable income under Internal Revenue Code Section 512(b)(3) shall not apply when determining whether an activity qualifies as an unrelated trade or business.

Effective June 30, 3000 (note: effective date appears to contain a typographical error).