HOUSE BILL No. 4185


     January 30, 1997, Introduced by Reps. Hammerstrom, Baade, Brackenridge, Dobb, LaForge, Goschka, Walberg, Richner, McBryde, Jelinek, Geiger, Palamara and Perricone and referred to the Committee on Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   by amending section 4o (MCL 205.54o), as added by 1994 PA 156.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 4o.  (1) A person subject to tax under this act  with

 2     aggregate sales at retail in the calendar year of less than

 3     $5,000.00 and  not operating for profit who is a school, church,

 4    hospital, parent cooperative preschool, CHARITABLE SERVICE ORGAN-

 5    IZATION, COMMUNITY SPONSORED YOUTH SPORTS PROGRAM, or nonprofit

 6    organization  with a tax exempt status under section 4n(1)(a) or

 7     (b)  may exclude from the proceeds used for the computation of

 8    the tax the sales of tangible personal property PRICED AT LESS

 9    THAN $50.00 PER ITEM for fund-raising purposes.

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

11    affiliated with a school, church, hospital, parent cooperative


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 1    preschool, CHARITABLE SERVICE ORGANIZATION, COMMUNITY SPONSORED

 2    YOUTH SPORTS PROGRAM, or nonprofit organization  with a tax

 3     exempt status under section 4n(1)(a) or (b)  is not considered a

 4    separate person for purposes of this exemption.  As used in this

 5    section, "school" means each elementary, middle, junior, or high

 6    school site within a local school district that represents a dis-

 7    trict attendance area as established by the board of the local

 8    school district.

 9         Enacting section 1.  This amendatory act is retroactive and

10    takes effect as of September 1, 1995.




































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