SB 667 Summary

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

• Retains GET taxation on gross income derived from "unrelated trade or business" activities as defined in Internal Revenue Code section 513, with modifications to unrelated business taxable income not applying.

• Amends Hawaii Revised Statutes section 237-23(b) to replace the "primary purpose of which is to produce income" standard with the federal "unrelated trade or business" definition.

• Takes effect July 1, 2050, with an automatic sunset and repeal on December 31, 2028, reverting the law to its prior form.