Sales Tax Articles
Sales Tax State Activity Update - March 2007
Michigan Gives Back to Nonprofit Constructions
The Michigan Legislature recently enacted an exemption for property purchased by a contractor for use in constructing real property for others to the extent the property is affixed to and made a structural part of an exempt nonprofit hospital or a nonprofit housing entity.
The exemption applies retroactively for taxes levied after June 30, 1999. The legislation defines the term "affixed to and made a structural part of" to mean any physical connection to an existing county long-term medical care facility. "Nonprofit hospital" and "medical attention" are also defined for purposes of the exemption.
It should be noted the exemption does not apply to any portion of the property if income or a benefit inures directly or indirectly to an individual, private stockholder, or other private person from the independent or nonessential operation of that portion of the property.
This full text may be viewed on the Michigan Legislature web site.
( Michigan Legislature, Act No. 666, 1/10/2007)
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