SB-1373, As Passed Senate, September 20, 2006

SUBSTITUTE FOR

SENATE BILL NO. 1373

     A bill to amend 1937 PA 94, entitled

"Use tax act,"

by amending section 6a (MCL 205.96a), as amended by 2004 PA 172.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 6a. (1) The organizing entity of a qualified athletic

event that sells corporate sponsor contracts for the event that

include both taxable tangible personal property and services may

exempt the sale of taxable tangible personal property or taxable

services if all of the following criteria have been met:

     (a) The organizing entity is exempt or is wholly owned by an

entity exempt under section 501(c)(6) of the internal revenue code,

26 USC 501.

     (b) The organizing entity provided both of the following to

the department at least  180  60 days in advance of entering into

the first corporate sponsor contract:

     (i) Written notice of its intent to enter into corporate

sponsor contracts.

     (ii) An itemized schedule of the tangible personal property and

services that will be provided under each corporate sponsor

contract.

     (c) The department has given written approval to the

organizing entity.

     (2) As used in this section, "qualified athletic event" means

either  1 or more of the following:

     (a) A professional sporting competition in which individuals

officially representing at least 2 countries or nations compete.

     (b) A professional football competition in which teams compete

in a postseason event to determine the league champion.

     (c) A professional golfers' association competition in which

individuals compete in an event to determine a champion.

     (d) A collegiate basketball competition in which teams compete

in a postseason event to determine the national champion.

     (3) This section is repealed effective January 1,  2007  2010.