Which taxes do parent-teacher organizations and other nonprofit, school-related organizations usually obtain exemptions from?
Nonprofit, school-related organizations usually obtain tax exemptions from the federal income tax and also from the Hawaii income and general excise taxes. Federal and State income taxes are sometimes called “net income” taxes because only the taxpayer’s net income (i.e., the taxpayer’s total income less associated expenses) is subject to taxation. The Hawaii general excise tax is sometimes called a “gross income” or “gross receipts” tax because the taxpayer’s gross income (i.e., total income before deducting any expenses) is subject to taxation.
