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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6516

May 20, 1988

SALES TAX: Exemption for veterans' organizations

VETERANS: Sales tax exemption

Sales at retail of tangible personal property made to veterans' organizations when operating schools, hospitals, homes for the care and maintenance of children or aged persons, or other health, welfare, education, charitable, or benevolent institutions or agencies, are exempt from the sales tax as provided in MCL 205.54a(a); MSA 7.725(a).

Honorable D. J. Jacobetti

State Representative

The Capitol

Lansing, MI 48909

You have requested my opinion as to whether sales at retail of tangible personal property made to veterans' organizations are excluded from determinations of a retailer's sales tax obligations.

The sales tax act, 1933 PA 167, MCL 205.51 et seq; MSA 7.521 et seq, imposes a privilege tax upon any person or entity engaging in the business of making sales at retail of tangible personal property. Gardner-White Co v Dunckel, 296 Mich 225; 295 NW2d 624 (1941). The tax is equal to 4% of the gross proceeds of the business making sales at retail. Act 167, Sec. 2. In computing the amount of tax levied for any month, the retailer need not include the gross proceeds from certain sales. Act 167, Sec. 4a(a), provides:

'A person subject to tax under this act need not include in the amount of the gross proceeds used for the computation of the tax, sales of tangible personal property:

'(a) Not for resale, and when not operated for profit, to a school, hospital, home for the care and maintenance of children or aged persons, or other health, welfare, educational, charitable, or benevolent institution or agency, operated by an entity of government, a regularly organized church, religious, or fraternal organization, a veterans' organization, or a corporation incorporated under the laws of the state, when the income or benefit from the operation does not inure, in whole or in part, to an individual or private shareholder, directly or indirectly, and when the activities of the entity or agency are carried on exclusively for the benefit of the public at large and are not limited to the advantage, interests, and benefits of its members or any restricted group. . . .'

Under the plain language of this statute, the Legislature has exempted sales to veteran organizations when operating certain institutions or agencies. Sales, for example, to a national home or a billet for the care of children operated by a veterans' organization may qualify for an exemption. There is, however, no general exclusion from gross proceeds of sales at retail to veterans' organizations.

It is my opinion, therefore, that sales at retail of tangible personal property made to veterans' organizations when operating schools, hospitals, homes for the care and maintenance of children or aged persons, or other health, welfare, education, charitable, or benevolent institutions or agencies, are exempt from the sales tax as provided in MCL 205.54a(a); MSA 7.725(a).

Frank J. Kelley

Attorney General


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