Agency: Michigan Dept. of Treasury, Tax Policy Division
Contact Person/Department: Glenn R. White, Administrator
Tel. No.: (517) 373-9600
Fax No.: (517) 241-3825
Public Schools (K-12)
Private Schools (K-12)
School Groups (e.g., clubs, bands, teams)
Other parent groups
Youth Sports League
501 (c)(3) organizations
501 (c)(6) organizations
See enclosed Revenue Administrative Bulletin (RAB) 1995-3.
1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?
1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.
Candies and Confections*
Cookies and Other Baked Goods*
Nuts, popcorn and other snack food*
Other edible items (please identify)*
Paper products (e.g., calendars, cards- Not Exempt
stationery, books, gift wrap)
Decorative tins, baskets, other containers**
Decorative novelties (mugs, ornaments)**
Sundry items (please specify item below)- Not Exempt
Clothing and accessories- Not Exempt
Jewelry- Not Exempt
Plant and seeds***
Other hard good items- Not Exempt
Food or food ingredients: The Michigan sales Tax Act MCL 205.54g, exempts from tax food and food ingredients for human consumption. Retail sales of food and food ingredients for human consumption normally considered as grocery items for home consumption are tax exempt. This would include candies, baked goods, cheese products, meats, nuts, popcorn etc. This exemption does not include prepared food intended for immediate consumption. Please refer to the enclosed Revenue Administrative Bulletin 1991-19, which discusses the taxability of prepared foods sold at fund raising events.
Magazines: Publications are exempt if they have been determined to be periodicals by the United States Postal Service.
According to the General Sales Tax Act, MCL 205.54a(f) one of the exemptions allowed for publications is if the publication is "admitted under present federal postal regulations" as second class postal matter. The Act states the regulations are effective September 1, 1985. Due to reform changes within the Postal Service, effective July 1, 1996, "second class" has been renamed "periodical". "Periodical" is designed for newspapers and other periodical Due to this change, Michigans Sales and Use Tax Acts will need to be amended. However, until such time as amendments are made, the Department will allow the new "periodical" designation to be exempt from sales and use tax the same as the publications formerly known as "second class" mail matter.
A specific magazine that has been classified by the postal service as a "periodical" will state within the first five pages that it has been so classified. If the magazines sold are so designated they would not be subject to tax.
** See Letter Ruling 87-16
*** Sales of fruit / vegetable plants / seeds are exempt when made by a business authorized by the U.S. Department of Agriculture to accept food stamps, or by a business that has applied for authorization to accept food stamps and provides proof of denial of authorization. MCL 205.54g(1)(d) and 205.94d(1)(d)
2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?
2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.
See RAB 1995-3
Limits on number of fundraiser events per year
Limits on duration of fundraisers
Limits on dollar amount of each item
Limits on total amounts raised per year
See RAB 1995-3
See comments in letter.
The fundraising group (e.g., school, PTA, church) and the company distributing goods to the fundraising group.
When sales are made by schools and other nonprofit organizations, tax must be remitted on taxable sales. To help schools and other nonprofit organizations with their responsibilities when conducting fun-raising sales, the Department gives them the choice of two ways to pay the tax. The organization may register with the Department to collect and remit tax that is due, or it may remit tax directly to the supplier. If the organization chooses to remit tax to the Department, it must become registered with a sales tax license, and present an exemption certificate to the supplier. If the organization chooses instead to pay the tax to the supplier, tax must be paid based on the retail selling price of the items.
Price paid by consumer to fundraising group.
See RAB 1995-3
Last Updated: September 2005