6. How are the sales of tangible personal property sourced to Michigan?

Sales of tangible personal property are in Michigan if:

(1) The property is shipped or delivered to a purchaser (other than the United States government) within Michigan regardless of the free on board (F.O.B.)  point or other conditions of the sale; or

(2) The property is shipped from an office, store, warehouse, factory or other place of storage in Michigan and the purchaser is the United States government or the taxpayer is not taxable in the state of the purchaser.  MCL 206.122

When determining the sales factor of a tangible product the Michigan sales are reported in the numerator and total sales everywhere are reported in the denominator on the Michigan Schedule of Apportionment (Form MI-1040H).  Note:  The numerator of the sales factor may include “throwback sales”.