Formulas for Special Situations
If both property and passengers are transported,
determine the portion subject to Michigan tax by first
Fewer Than Three Factors
computing separate percentages, as described above,
If a business does not have three factors (i.e., if line 8,
for property transported and for passengers transported.
11 or 14 is zero), reweight the factors to compute the
Then divide gross receipts for each activity by the total
apportionment percentage. To reweight, add the
gross receipts. Multiply the percentage of gross receipts
weighted percentages in column C for the current
by the transportation percentage. Sum the results of
factors, then add the weighting factors in column B for
both calculations and enter this percentage on line 19.
the factors. Divide the sum of column C by the sum of
See Example 3.
column B. Enter this percentage on line 16.
Example 3: Formula for Transportation Services
Example 2
Michigan revenue-miles
Gross receipts
Factor
Column A Column B
Column C
for property
for property
Property
10%
x
3.75%
=
0.375%
_________________
x
_______________
Payroll
none
Total revenue-miles
Total gross receipts
Sales
50%
x
92.5%
=
46.25%
for property
96.25%
46.625%
+
46.625% ÷ 96.25% = 48.4415% (.484415).
Michigan revenue-miles
Gross receipts
for people
for people
Enter this percentage on line 16.
_________________
x
_______________
Total revenue-miles
Total gross receipts
Transportation of Oil by Pipeline
for people
The apportionment percentage used for the
_____________________________________
transportation of oil by pipeline is based on barrel-
= The apportionment percentage
miles. Enter on line 17 the barrel-miles transported in
Michigan during the tax year. Enter on line 18 the total
Financial Organizations
barrel-miles transported everywhere during the tax year.
The apportionment percentage used by a financial
Divide line 17 by line 18. Enter this percentage on line
organization is based on gross business. Gross
19.
business is the sum of:
Transportation of Gas by Pipeline
• Fees, commissions or other compensation for
The apportionment percentage used for the
financial services;
transportation of gas by pipeline is based on 1,000
• Gross profits from trading in stocks, bonds or other
cubic-foot miles. Enter on line 17 the 1,000 cubic-foot
securities;
miles transported in Michigan during the tax year. Enter
• Interest charged to customers for carrying debit
on line 18 the total 1,000 cubic-foot miles transported
balances of margin accounts without deduction of
everywhere during the tax year. Divide line 17 by line
any costs incurred in carrying the accounts;
18. Enter this percentage on line 19.
• Interest and dividends received; plus
Other Transportation Services
• Any other gross income resulting from operations as
The apportionment percentage used for other
a financial organization.
transportation services is based on revenue-miles. A
Enter on line 17 gross business in Michigan during the
revenue-mile means the transportation of one net ton of
property or one passenger for the distance of one mile.
tax year. Refer to RAB 2002-14, Single Business Tax –
For example: 40 tons x 100 miles = 4,000 revenue
Apportionment and Sourcing for Financial Organizations, for
more information. Enter on line 18 the total gross business
miles. Enter on line 17 the revenue-miles transported in
everywhere during the tax year. Divide line 17 by line 18.
Michigan during the tax year. Enter on line 18 the total
Enter this percentage on line 19.
revenue-miles transported everywhere during the tax
year. Divide line 17 by line 18. Enter this percentage on
line 19.