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Michigan, Nonprofits, and Sales Tax Exemptions


 Michigan Updates Sales Tax Exemptions for Nonprofits.

Effective March 28, 2013, certain charitable organization in the state of Michigan will be eligible for a sales tax exemption on purchases of personal property worth $5000 or less.

Enrolled Senate Bill No. 1337 reads:

Sec. 4q ((1) A sale of tangible personal property not for resale to the following, subject to subsection (5), is exempt from the tax under this act:

(a) A health, welfare, educational, cultural arts, charitable, or benevolent organization not operated for profit that has been issued an exemption ruling letter to purchase items exempt from tax … .

(b) An organization not operated for profit and exempt from federal income tax … ."

In order to qualify for the exemption, "the transferee shall do 1 of the following:"

(a)Present a signed exemption ruling letter "certifying that the property is to be used or consumers in connection with the operation of the organization;" or

(b)Present an approved signed statement "stating that the property is to be used or consumed in connection with the operation of the organization, to carry out the purposes of the organization, or to raise funds or obtain resources necessary for the operation of the organization, and that the organization qualifies as an exempt organization under this section, and that the sales price of any single item of tangible personal property or vehicle purchased for purposes of raising funds or obtaining resources does not exceed $5,000.00."

Read Michigan Senate Bill No. 1337 here.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.