HOUSE BILL No. 4015


     January 8, 1997, Introduced by Rep. McNutt 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) or (b) may exclude from the proceeds used

 7    for the computation of the tax  the  $5,000.00 OF sales of tangi-

 8    ble personal property SOLD for fund-raising purposes.

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

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

11    preschool, or nonprofit organization with a tax exempt status


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 1    under section 4n(1)(a) or (b), SECTION 4N AS ADDED BY 1994

 2    PA 156, MCL 205.54N[1], is not considered a separate person for

 3    purposes of this exemption.  As used in this section, "school"

 4    means each elementary, middle, junior, or high school site within

 5    a local school district that represents a district attendance

 6    area as established by the board of the local school district.












































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