LANSING, Mich. — Rep. Steve Frisbie today advanced legislation through the House Finance Committee to modernize Michigan’s sales tax exemptions for nonprofit fundraising, strengthening the ability of schools, churches, hospitals, veterans organizations, and other nonprofits to support their missions.

House Bill 5318 increases the current sales tax exemption cap on fundraising sales of vehicles and personal property from $25,000 to $75,000. The update reflects inflation, higher asset values, and the growing costs faced by organizations that rely on fundraising to serve their communities and support veterans and their families.

“For many nonprofits and veterans organizations, fundraising is not optional — it is how they meet real needs,” Frisbie said. “This legislation updates an outdated limit so organizations serving students, patients, veterans, and local communities are not constrained by thresholds that no longer reflect today’s economy.”

The legislation received testimony in support from Tim Paxson of the American Legion, who highlighted the importance of fundraising flexibility for veterans service organizations that provide assistance, programming, and community support across Michigan.

Current law allows qualifying nonprofit entities to exempt sales tax on certain fundraising transactions up to $25,000. House Bill 5318 preserves the existing exemption structure while adjusting the cap to better align with modern market realities, particularly for high-value donated items such as vehicles.

Frisbie emphasized that the bill does not create a new tax exemption, but responsibly updates existing law to ensure community and veterans organizations can continue serving Michigan residents effectively.

House Bill 5318 now moves forward for continued consideration in the House Finance Committee.