The bill amends the General Sales Tax Act of 1933 by updating Section 4a to clarify and expand the list of exemptions from sales tax. Notable insertions include exemptions for sales of tangible personal property to nonprofit organizations such as schools, hospitals, and churches, as well as specific provisions for parent cooperative preschools. Additionally, the bill introduces exemptions for feminine hygiene products and children's diapers, defining these terms to ensure clarity in their application. Other exemptions include sales related to agricultural activities, commercial fishing, and certain educational materials.

The bill also specifies that the exemptions are limited to the extent that the property is used for the stated exempt purposes and outlines the conditions under which these exemptions apply. It emphasizes that certain exemptions do not cover transfers of food, fuel, or clothing for personal use unless they fall under specific agricultural categories. The amendments are intended to be retroactive, applying to all periods open under the relevant tax law, but do not apply to refund claims filed before April 9, 2018. The bill is set to take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 205.54