President's message:

Nonprofits rally against repeal
of state excise tax exemption

Hundreds of testimonies from nonprofit organizations and their constituencies -- 362 pages in all -- flooded the state House Finance Committee opposing House Bill 1742 at a hearing this week. Amongst other things, the bill proposed repealing the exemption from the general excise tax for all nonprofit organizations other than religious groups on all revenue other than gifts and donations. Clearly, such a repeal would devastate the sector.

Your immediate and tremendous response to HANO's alert was an exciting indication that the sector can come together in a flash to favorably impact public policy. Testimonies came from all parts of the state, from practically every island and every sub-sector and from small, medium and large organizations. The broad, deep and diverse nonprofit community spoke with a strong, clear collective voice. We thank everyone who participated. Click here to see the testimonies.

The Finance Committee deferred decision-making on the bill indefinitely. This could signal that the measure will be tabled. If the committee does not pass the bill out by March 12, it will be dead for this session. While deferral is not an immediate victory, it is reason for cautious optimism. HANO will continue to watch and work to ensure that a repeal doesn't resurface later in the session.

Mahalo,

Lisa Maruyama
President and CEO