HI HB1437

Establishes a new general excise tax exemption for gross proceeds or gross income from sales of commodities or services that benefit nonprofit schools.

Exemption applies to sales made by either a nonprofit school or a nonprofit school-sponsored student activity group.

Defines "nonprofit school" as a 501(c)(3) charitable organization organized for educational purposes that is registered with the Hawaii Department of Taxation and holds a tax clearance certificate.

Defines "nonprofit school-sponsored student activity group" to include student government, athletic teams, performing groups, clubs, honor societies, pep squads, and other student groups under school control.

Requires that all sale proceeds, minus only the actual cost of goods or services, must be donated to the nonprofit school and used exclusively for its tax-exempt educational purposes.