MI HB4421

Increases the sales tax exemption threshold for fund-raising activities by schools, churches, hospitals, parent cooperative preschools, and tax-exempt nonprofit organizations from $5,000 to $10,000 in aggregate annual retail sales.

Organizations with tax-exempt status under section 4q(1)(a) or (b) that fall below the $10,000 annual sales threshold are exempt from Michigan's general sales tax on tangible personal property sold for fund-raising purposes.

Clarifies that clubs, associations, auxiliaries, or other organizations affiliated with exempt entities are not treated as separate persons for purposes of this exemption, meaning their sales are counted toward the parent organization's aggregate total.

Defines "school" as each individual elementary, middle, junior, or high school site within a local school district that represents a district attendance area.

Takes effect 90 days after enactment into law.