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.