Bill > HB5318

This bill modifies the Michigan General Sales Tax Act by expanding sales tax exemptions for nonprofit organizations and veterans' groups during fundraising events. The bill increases the aggregate sales limit for tax-exempt fundraising from $25,000 to $75,000 for each individual event for both nonprofit organizations and veterans' organizations. Additionally, the bill introduces an annual inflation adjustment mechanism where the state treasurer will review and potentially increase these monetary limits each calendar year based on changes in the Consumer Price Index. The bill clarifies definitions of key terms like "active duty", "service member", and "veteran", ensuring that organizations affiliated with schools, churches, hospitals, and veterans' groups can be considered together for exemption purposes. The changes aim to provide more flexibility and financial support for charitable and veterans' organizations by allowing them to raise more funds without incurring sales tax, while also ensuring the exemption amounts keep pace with economic changes through the inflation adjustment provision.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5318