Nonprofits GET taken by state
There's a reason it's called "legalese."
After all, at what dinner party would you hear the phrase: "To the fraternal, religious, charitable, scientific, educational, communal, or social welfare activities of such persons, or to the activities of such hospitals, infirmaries, and sanitaria as such, and not to any activity the primary purpose of which is to produce income even though the income is to be used for or in furtherance of the exempt activities of such persons"?
The excerpt above is otherwise known as Hawaii Statute 237-23.5 and actually applies to nonprofit tax exemptions. To the untrained eye, the law, even when read in its entirety, is not easy to interpret. In fact, while reporting my article on nonprofits and the General Excise Tax, the difficulty in understanding the law became apparent. Nonprofits don't read it the same way.