Mich. Admin. Code R 205.140 — Nonprofit entities

Rule 90. (1) Sales of tangible personal property and services to properly
qualified nonprofit entities for their own use and consumption, but not for resale, are
exempt.
(2) The claimant shall meet the following requirements for exemption:
(a) Qualify as a school, hospital, home for the care and maintenance of children
or aged persons, and other health, welfare, educational, charitable, or benevolent
institutions and agencies.
(b) Be operated by an entity of government, a regularly organized church,
religious or fraternal organization, a veterans organization, or a corporation
incorporated under laws of the state.
(c) The income or benefit from the operation shall not inure, in whole or in part,
to any individuals or private shareholders, directly or indirectly.
(d) The activities of the entity or agency shall be carried on exclusively for
the benefit of the public at large and not limited to the advantage, interests, and
benefits of its members or any restricted group.
(3) When an exemption is claimed, the seller, at the time of the transfer of
the tangible property or services, shall retain, as part of the seller's records, an
executed exemption certificate which reads as follows:

CERTIFICATE IS TO BE EXECUTED WHEN TAX EXEMPT SALE
IS MADE TO AN EXEMPT INSTITUTION OR AGENCY

The undersigned hereby certifies that the item or items being purchased are to be
used or consumed in connection with the operation of the exempt institution or
agency named in the space provided below, and that the consideration for this
purchase moves from the funds of the designed institution or agency. In the event
this claim is disallowed, the transferee promises to reimburse the seller for the amount of
tax involved.

Date __________________
_________________________________________________
Name of exempt institution or agency
Courtesy of Michigan Administrative Rules

_________________________________________________
Signature and title of person making certification

(4) The department does not issue so-called "exemption numbers." If there is
some question regarding exemption status, the claimant may contact the department
for a ruling.
(5) Nonprofit entities engaged in a retail sales activity of any kind are required to
have a sales tax license. The fact that the receipts or profits from such sales may be
used for otherwise exempt purposes is not material.