Recent legislation passed by the Hawaii legislature that ends an exemption from the state’s General Excise Tax for events and exhibitions occurring in the state prompted a letter from IAEE President Stephen Hacker urging Hawaii Gov. Neil Abercrombie to restore the exemption.
Under the new law, an excise tax rate of 1 percent now applies to the value or gross income received by nonprofit organizations from certain conferences, conventions and trade show exhibitions held in the state. The legislation is in effect from July 1, 2011 through June 30, 2015.
Hacker warned the governor that the excise tax is likely to deter organization from holding events in Hawaii, given such factors as increased shipping costs and travel time from the mainland that already pose challenges for some organizations.
“This additional tax would add another reason why many organizations could look elsewhere for future events,” he stated.
