HOUSE BILL No. 4112


     February 2, 1999, Introduced by Reps. Stamas, Jelinek, Kukuk, Jansen, DeHart, Van Woerkom and Sanborn 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, or  nonprofit  OTHER

 5
      organization, NOT OPERATING FOR PROFIT, with a tax exempt status

 6
      under section  4n(1)(a)  4Q(1)(A) or (b) may exclude from the

 7
      proceeds used for the computation of the tax  the  $5,000.00 OF

 8
      sales of tangible personal property SOLD for fund-raising

 9
      purposes.

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

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


   00829'99                                                 CSC
                                              2

 1
      preschool, or nonprofit organization with a tax exempt status

 2
      under section  4n(1)(a)  4Q(1)(A) or (b) is not considered a sep-

 3
      arate person for purposes of this exemption.  As used in this

 4
      section, "school" means each elementary, middle, junior, or high

 5
      school site within a local school district that represents a dis-

 6
      trict attendance area as established by the board of the local

 7
      school district.










































   00829'99          Final page.                            CSC