HB-4115, As Passed House, June 12, 2018

HB-4115, As Passed Senate, June 7, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4115

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 4o (MCL 205.54o), as amended by 2016 PA 503.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4o. (1) The sale of the first $10,000.00 of tangible

 

personal property in a calendar year for fund-raising purposes by a

 

school, church, hospital, parent cooperative preschool, or

 

nonprofit organization that has a tax exempt 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.

 

     (2) A club, association, auxiliary, or other organization

 

affiliated with a school, church, hospital, parent cooperative


preschool, or nonprofit organization with a tax exempt 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 President of the United States, an act of

 

congress, Congress, or an order of the governor.

 

     (b) "Armed forces 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 Armed Forces

 

of the United States.


     (c) "Service member" means a member of the armed forces Armed

 

Forces of the United States, a reserve branch of the armed forces

 

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

 

Armed Forces of the United States for a period of more than 180

 

days and separated from the armed forces 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 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.