HB 5318 Michigan House · 2025-2026 Regular Session

Sales tax: exemptions; certain exemptions; modify. Amends secs. 4o & 4q of 1933 PA 167 (MCL 205.54o & 205.54q).

HB 5318 modifies Michigan's sales tax exemptions for fundraising by specific organizations. It raises the annual sales cap for tax-exempt fundraising events from $25,000 to $75,000 per event (adjusted for inflation) for schools, churches, hospitals, parent cooperatives, and nonprofits with 501(c)(3)/(4) status. It also increases the cap for veterans' groups (501(c)(19) organizations) from $25,000 to $75,000 per event, with both limits adjusted yearly using the Consumer Price Index. The bill affects qualifying nonprofits, schools, and veterans' organizations conducting fundraising sales under these exemptions.

Bill status in committee 1 of 4 stages cleared

Introduction

Dec 2025

Committee Review

Floor Vote

Governor

Introduced Dec 2, 2025 Last action Mar 3, 2026

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What changed between versions

House Introduced Bill → Substitute (H-1) · 3 edits

MINOR

This bill amends the Michigan General Sales Tax Act to update and clarify exemptions for charitable and veterans' fundraising events. The primary change is the addition of a specific definition for 'fund-raising event,' which now includes modern methods like online campaigns and ticketed events, ensuring these activities are covered under existing tax exemptions. The bill also reorganizes the text to better align the definition of 'fund-raising event' with the specific exemptions for schools, churches, and veterans' organizations.

Scope change

The scope of the bill's applicability was expanded to explicitly include digital and ticketed fundraising activities that were not clearly defined in the previous version.

DEFINITION

Added a new definition for 'fund-raising event' that explicitly includes online campaigns, auctions, raffles, and ticketed events to ensure they qualify for tax exemptions.

ELIGIBILITY

Reorganized the text to clarify that the $75,000 aggregate sales limit applies to each individual fund-raising event, ensuring consistency across different types of exempt organizations.

TECHNICAL

Updated the bill header and page numbering to reflect its status as a substitute bill (H-1) rather than the original introduction.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 3, 2026

Committee

referred to second reading

lower

Mar 3, 2026

Lower · Passed

reported with recommendation with substitute (H-1)

lower

Dec 2, 2025

Committee

referred to Committee on Finance

lower

Dec 2, 2025

Introduced

introduced by Representative Rep. Steve Frisbie

lower

1 primary · 7 co-sponsors