USE TAX EXEMPTION: DONATED AND RAFFLED VEHICLES
House Bill 4971
Sponsor: Rep. Joanne Voorhees
Committee: Tax Policy
A SUMMARY OF HOUSE BILL 4971 AS INTRODUCED 6-19-01
Under the Use Tax Act, generally speaking, property or services sold to nonprofit organizations are exempt from the tax. This does not apply, however, to sales of tangible personal property and motor vehicles that are not used primarily to carry out the purposes of the organization. House Bill 4971 would amend the act to allow an exemption for a motor vehicle donated to a nonprofit organization for the purpose of being raffled off in a fund-raising event for the benefit of the nonprofit organization.
MCL 205.94
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.