Michigan Business Tax
The Michigan Business Tax (MBT) establishes a new two-pronged business tax and various tax credits effective January 1, 2008. MBT replaces the Single Business Tax (SBT) that is repealed effective December 31, 2007. The Michigan Business Tax includes a Modified Gross Receipts Tax with a rate of .8% and a Modified Business Income Tax with a rate of 4.95%. An additional surtax of 21.99% of these amounts was added by Legislature in December 2007. Businesses with at least $350,000 in Michigan-sourced gross receipts will be subject to the new tax. Unitary business groups with combined Michigan-sourced gross receipts of at least $350,000 will be required to file a combined tax return. A unitary business group includes a group of businesses that is controlled by one member of the group and that has activity or operations that flow between the businesses. Click here to download a summary of the MBT. (PDF Document)
MBT Tax Calculator
The Michigan chapter of the National Federation of Independent Business has created an MBT Tax Calculator to estimate the impact of the new tax on individual businesses. Visit their Web site at www.nfib.com/page/homeMI.html to download the MBT Tax Calculator.
The Michigan Department of Treasury aslso offers more information at www.Michigan.gov/mbt. Additional legislation and regulatory guidance is expected to clarify and modify specific provisions of the new tax structure before MBT returns are actually filed. Check back for updated information and calculators.
