HOUSE BILL No. 6002


     May 7, 2002, Introduced by Reps. Bisbee and Vear and referred to the Committee on Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   (MCL 205.51 to 205.78) by adding section 5b; and to repeal acts

   and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC. 5B.  (1) NOTWITHSTANDING THE PROVISIONS OF SECTION 2,

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        THE ORGANIZING ENTITY OF AN INTERNATIONAL ATHLETIC EVENT THAT

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        SELLS CORPORATE SPONSOR CONTRACTS FOR THE EVENT THAT INCLUDE BOTH

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        TAXABLE TANGIBLE PERSONAL PROPERTY AND NONTAXABLE SERVICES MAY

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        APPLY THE TAX ONLY TO THE AMOUNT CHARGED FOR THE TAXABLE TANGIBLE

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        PERSONAL PROPERTY IF ALL OF THE FOLLOWING CRITERIA HAVE BEEN

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        MET:

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             (A) THE ORGANIZING ENTITY IS EXEMPT OR IS WHOLLY OWNED BY AN

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        ENTITY EXEMPT UNDER SECTION 501(c)(6) OF THE INTERNAL REVENUE

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        CODE OF 1986.


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             (B) THE ORGANIZING ENTITY PROVIDED BOTH OF THE FOLLOWING TO

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        THE DEPARTMENT AT LEAST 180 DAYS IN ADVANCE OF ENTERING INTO THE

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        FIRST CORPORATE SPONSOR CONTRACT:

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             (i) WRITTEN NOTICE OF ITS INTENT TO ENTER INTO CORPORATE

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        SPONSOR CONTRACTS.

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             (ii) AN ITEMIZED SCHEDULE OF THE TAXABLE TANGIBLE PERSONAL

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        PROPERTY AND NONTAXABLE SERVICES THAT WILL BE PROVIDED UNDER EACH

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        CORPORATE SPONSOR CONTRACT.

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             (C) THE DEPARTMENT HAS GIVEN WRITTEN APPROVAL TO THE ORGA-

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        NIZING ENTITY'S ALLOCATION OF THE TAX AMONG TAXABLE TANGIBLE PER-

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        SONAL PROPERTY AND NONTAXABLE SERVICES.

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             (2) AS USED IN THIS SECTION, "INTERNATIONAL ATHLETIC EVENT"

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        MEANS A SPORTING COMPETITION IN WHICH INDIVIDUALS OFFICIALLY REP-

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        RESENTING AT LEAST 2 COUNTRIES OR NATIONS COMPETE.

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             (3) THIS SECTION IS REPEALED EFFECTIVE JANUARY 1, 2005.



























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