HI SB667

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

Replaces the current "primary purpose of which is to produce income" standard with the federal "unrelated trade or business" definition from Internal Revenue Code section 513, with modifications from section 512(b)(3) not applying.

Retains general excise tax on gross income derived from unrelated trades or businesses and does not affect rental income from unrelated business activities.

Becomes effective July 1, 2050, and automatically repeals December 31, 2028, reverting Hawaii Revised Statutes section 237-23 to its previous form.