Multi-State Information

 

How does the SBT apply to taxpayers doing business in more than one state?

Taxpayers doing business in Michigan and in other states apportion their tax base to Michigan using a formula based on their percentage of property, payroll and sales in Michigan. Financial organizations and transportation companies use a single factor formula based on gross business and revenue miles, respectively. See Form C-8000H, SBT Apportionment Formula.

Does the SBT recognize the unitary method of taxation?

No. Only firms actually engaged in business activity in Michigan are subject to the SBT. A foreign subsidiary or parent corporation with no Michigan business activity is not subject to the SBT.