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42.23.103    EXEMPTIONS

(1) A corporation is not exempt from this tax merely because it is not organized and operated for profit. A corporation seeking the benefits of exemption must prove strict compliance with all statutory conditions authorizing the classification claimed.

(2) In order to establish its exemption and thus be relieved of the duty of filing returns and paying the tax, each organization claiming exemption must file with the department an affidavit showing:

(a) the character of the organization;

(b) the purpose for which it was organized;

(c) its actual activities;

(d) the sources and the disposition of its income;

(e) whether or not any of its income may inure to the benefit of any private shareholder or individual;

(f) a copy of the articles of incorporation;

(g) a copy of the by-laws; and

(h) copies of the latest financial statements showing the assets, liabilities, receipts, and disbursements must be submitted with the affidavit.

(3) In addition, if the IRS has granted the organization exemption from the federal income tax, a certified copy of the exemption certificate or letter shall also be filed.

History: Sec. 15-31-501, MCA; IMP, Sec. 15-31-101 and 15-31-102, MCA; Eff. 12/31/72; AMD, 1982 MAR p. 104, Eff. 1/29/82; AMD, 2001 MAR p. 2046, Eff. 10/12/01.

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