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.