SB-1039, As Passed Senate, April 26, 2006
February 8, 2006, Introduced by Senators McMANUS, BIRKHOLZ, GILBERT, JELINEK, BISHOP and ALLEN and referred to the Committee on Finance.
A bill to amend 2004 PA 175, entitled
"Streamlined sales and use tax revenue equalization act,"
(MCL 205.171 to 205.191) by adding section 14.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 14. (1) A qualified person who paid a tax under the
general sales tax act may calculate a credit and seek a refund from
the department equal to 6% of the gross proceeds of a qualified
sale of an auctioned item in excess of the fair market value of
that auctioned item.
(2) A qualified person may not seek a credit or refund from
the department under this section for any portion of a qualified
sale of an auctioned item for which a tax under the general sales
tax act was collected from the purchaser, unless the tax collected
Senate Bill No. 1039 as amended April 26, 2006
was refunded to the purchaser.
(3) A qualified person seeking a credit or refund under this
section shall obtain and retain in its records a certification of
fair market value supplied by the donor of an auctioned item on a
form prescribed by the department.
(4) At the option of the qualified person, the credit
calculated under this section may be applied to reduce the tax due
under the general sales tax act, in accordance with the procedures
implementing those sales tax payment obligations.
(5) As used in this section:
(a) "General sales tax act" means the general sales tax act,
1933 PA 167, MCL 205.51 to 205.78.
(b) "Qualified person" means an organization not operated for
profit that is exempt from federal income tax under section
501(c)(3) or 501(c)(4) of the internal revenue code, 26 USC 501.
(c) "Qualified sale" means a sale made by a qualified person
through a charitable auction.
<<Enacting section 1. This amendatory act takes effect 60 days after the date it is enacted.>>