January 24, 2006, Introduced by Senators ALLEN, STAMAS, GOSCHKA, VAN WOERKOM, CROPSEY, HARDIMAN, BIRKHOLZ, GILBERT, GARCIA and EMERSON and referred to the Committee on Finance.
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 $25,000.00 are
exempt from the tax under this act, subject to subsection (3).
(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) Beginning January 1, 2007 and each year after 2007, the
maximum allowable aggregate sales under subsection (1) shall be
increased to the amount of gross receipts allowable under section
508(c)(1)(b) of the internal revenue code, 26 USC 508, for a
nonprofit organization exempt under section 501(c)(3) of the
internal revenue code, 26 USC 501, if that amount is greater than
the amount allowable in the immediately preceding year.