HB5423 Amendment Summary

• Amends the Use Tax Act and Retailers' Occupation Tax Act to clarify that "occasional" fundraising activities by charitable, religious, or educational organizations are limited to not more than 2 such activities per calendar year.

• Requires that effective July 1, 2012, sales of tangible personal property at qualifying occasional dinners, socials, and similar fundraising events are exempt from taxation only if 100% of gross revenues (after reasonable expenses) are used for charitable, religious, or educational purposes.

• Defines "gross revenues generated from the activity" to include admission or ticket sales, sales of tangible personal property, sponsorships, and broadcast rights.

• Expands the definition of qualifying activities to include ice cream socials, fun fairs, carnivals, rummage sales, bazaars, bake sales, charity auctions, street fairs, and indoor or outdoor concerts or performances.

• Specifies that items sold at qualifying occasional activities are exempt whether purchased or donated, and whether the activity is open to the public or restricted to members, provided the 2-activity annual limit is not exceeded.