Practices

Michigan Business Tax

The Michigan Business Tax (MBT) became effective January 1, 2008. For taxpayers other than financial institutions and insurance companies, the MBT includes a tax on gross receipts and a tax on net income, a subtraction for “purchases from other firms” and many exemptions and credits that can reduce a taxpayer’s liability. Financial institutions and insurance companies are subject to an industry–specific tax.

The MBT contains an expanded definition of nexus. Under the MBT a taxpayer may have nexus with Michigan, and be subject to the MBT, if it sells to Michigan residents even if the taxpayer does not have physical presence in Michigan. The MBT includes nexus for taxpayer’s with economic presence in Michigan.

The MBT also includes a requirement that members of a unitary business group file a unitary MBT return.

Our attorneys are familiar with all aspects of the MBT and are available to advise you on the MBT.