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.