MI SB1422

Amends the General Sales Tax Act to clarify sales tax exemptions for nonprofits and charitable organizations that are exempt from federal income tax under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code.

Exempts tangible personal property and vehicles licensed for public highways from sales tax only when used primarily to carry out the organization's stated purposes or to raise funds and obtain resources necessary for the organization's operation.

Requires exempt organizations to present either an exemption ruling letter signed by the state tax administrator or a signed statement on a department-approved form certifying the property's intended use at the time of transfer.

Makes exemption letters and signed statements prima facie evidence of tax exemption in all courts, with the statement requiring the organization to reimburse the seller for any tax if the exemption claim is disallowed.

Limits the exemption to the percentage of exempt use versus total use as determined by a reasonable formula or method approved by the Department of Revenue.