MI SB1337

Clarifies sales tax exemptions for nonprofits by allowing organizations exempt under federal tax code sections 501(c)(3) or 501(c)(4) to purchase tangible personal property without paying sales tax.

Exempts property purchases only when used to carry out the organization's stated purposes in bylaws or articles of incorporation, or to raise funds or obtain resources for those purposes.

Limits fund-raising exemptions to individual items with a sales price not exceeding $5,000.00 per transaction.

Requires nonprofits to present either an exemption ruling letter from the Department of Treasury or a signed statement with their federal exemption letter to qualify for the tax exemption at purchase.

Effective date: March 28, 2013.