Bill Text: MI SB0106 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Sales tax; exemptions; tax-exempt status on aggregate sales for fund-raising purposes for certain nonprofit organizations; include veterans service organizations. Amends sec. 4o of 1933 PA 167 (MCL 205.54o).
Spectrum: Partisan Bill (Republican 12-0)
Status: (Passed) 2016-12-30 - Assigned Pa 0503'16 [SB0106 Detail]
Download: Michigan-2015-SB0106-Engrossed.html
SB-0106, As Passed House, December 13, 2016
SB-0106, As Passed Senate, March 19, 2015
SUBSTITUTE FOR
SENATE BILL NO. 106
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 4o (MCL 205.54o), as amended by 2004 PA 173.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4o. (1) The sale of tangible personal property for fund-
raising purposes by a school, church, hospital, parent cooperative
preschool, or nonprofit organization that has a tax exempt status
under section 4q(1)(a) or (b) and that has aggregate sales at
retail in the calendar year of less than $5,000.00 are exempt from
the tax under this act.
(2) A club, association, auxiliary, or other organization
affiliated with a school, church, hospital, parent cooperative
preschool, or nonprofit organization with a tax exempt status under
section 4q(1)(a) or (b) is not considered a separate person for
purposes of this exemption. As used in this section, "school" means
each elementary, middle, junior, or high school site within a local
school district that represents a district attendance area as
established by the board of the local school district.
(3) Except as otherwise limited under this subsection, the
sale of tangible personal property by a veterans' organization that
is exempt from federal income tax under section 501(c)(19) of the
internal revenue code, 26 USC 501, for the purpose of raising funds
for the benefit of an active duty service member or a veteran is
exempt from the tax under this act. The exemption under this
subsection is limited to $25,000.00 in aggregate sales of tangible
personal property for each individual fund-raising event. A club,
association, auxiliary, or other organization affiliated with a
veterans' organization that is exempt from federal income tax under
section 501(c)(19) of the internal revenue code, 26 USC 501, is not
considered a separate person for purposes of this exemption. As
used in this subsection:
(a) "Active duty" means active duty pursuant to an executive
order of the president of the United States, an act of congress, or
an order of the governor.
(b) "Armed forces of the United States" means the army, air
force, navy, marine corps, coast guard, or other military force
designated by congress as a part of the armed forces of the United
States.
(c) "Service member" means a member of the armed forces of the
United States, a reserve branch of the armed forces of the United
States, or the national guard.
(d) "Veteran" means any of the following:
(i) A person who served on active duty in the armed forces of
the United States for a period of more than 180 days and separated
from the armed forces of the United States in a manner other than a
dishonorable discharge.
(ii) A person discharged or released from active duty because
of a service-related disability.
(iii) A member of a reserve branch of the armed forces of the
United States at the time he or she was ordered to active duty
pursuant to subtitle E of title 10 of the United States Code, 10
USC 10001 to 18506, who served on active duty during a period of
war, or in a campaign or expedition for which a campaign badge is
authorized, and was released from active duty in a manner other
than a dishonorable discharge.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
