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HB 1437 Hawaii House · 2026 Regular Session

RELATING TO GENERAL EXCISE TAX EXEMPTIONS.

Summary
Establishes a general excise tax exemption on the gross proceeds or gross income received from sales of commodities or services that benefit nonprofit schools. Effective 1/1/3000. (HD2)
Issues: ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief to nonprofit schools via general excise tax exemption, aligning with tax relief indicators for support.95% confidence ✓ EducationSupports EducationProvides tax exemption for nonprofit schools, reducing operational costs and supporting their funding capacity for educational services.95% confidence
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
House Passage
Mar 2025
Senate Passage
Governor
Introduced Jan 23, 2025 Last action Dec 8, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

HB1437_HD1 → HB1437_HD2 · 3 edits
MINOR
The bill was renumbered from H.D. 1 to H.D. 2 and updated with new metadata. The core policy regarding tax exemptions for nonprofit schools remains the same, but the eligibility criteria for student groups were clarified by requiring them to hold a tax clearance certificate from the Department of Taxation, and the definition of 'Nonprofit school-sponsored student activity group' was expanded to explicitly list specific types of groups like pep squads and honor societies.
Scope change
The scope of the exemption now explicitly includes a broader, itemized list of student activity groups, provided they meet the new tax clearance requirement.
ELIGIBILITY

Student groups must now be registered with and possess a tax clearance certificate from the Department of Taxation to qualify for the exemption, replacing the previous requirement of being in good standing.

DEFINITION

The definition of 'Nonprofit school-sponsored student activity group' was expanded to explicitly list student government, athletic teams, performing groups, foreign language clubs, honor societies, and pep squads.

TECHNICAL

The bill was renumbered from H.D. 1 to H.D. 2, and the report title was slightly adjusted to 'Excise Tax; Exemption; Nonprofit Schools'.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
17
Key actions
4
Committee
6
Mar 7, 2025
Upper · Passed
The committee(s) on EDU has scheduled a public hearing on 03-12-25 3:00PM; Conference Room 229 & Videoconference.
upper
Mar 6, 2025
Committee
Referred to EDU, WAM.
upper
Mar 6, 2025
Introduced
Received from House (Hse. Com. No. 374).
upper
Mar 4, 2025
Lower · Passed
Passed Third Reading as amended in HD 2 with Representative(s) Iwamoto voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.
lower
Feb 20, 2025
Lower · Passed
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Alcos, Ward.
lower
Feb 14, 2025
Committee
Reported from EDN (Stand. Com. Rep. No. 755) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
lower
Feb 13, 2025
Lower · Passed
The committee on EDN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Woodson, La Chica, Amato, Evslin, Garrett, Kapela, Kila, Olds, Sayama, Souza; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Muraoka.
lower
Jan 27, 2025
Committee
Referred to EDN, FIN, referral sheet 4
lower
Jan 23, 2025
Introduced
Introduced and Pass First Reading.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Nadine Nakamura
Nadine Nakamura
DDemocratic
HI
15