Instructions For Form 4567 - Michigan Business Tax Annual Return (Page 6 of 11) in pdf

theater owner to a film distributor, a film producer, or a film

whose primary activity (i.e., more than 50 percent of gross

distributor and producer.

receipts) is the production of agricultural goods.

Line 19: Enter any deduction available to a Qualified

C) Enter on this line the gross receipts included on line 12

Affordable Housing Project (QAHP).

which result from the production of oil or gas, and minerals

if that production of oil or gas, and minerals is subject to the

Public Act (PA) 168 of 2008 provides for a deduction from the

Severance Tax on Oil or Gas, 1929 PA 48.

modified gross receipts and apportioned business income tax

bases for a Qualified Affordable Housing Project.

Line 26: Enter the amount of MBT Modified Gross Receipts

Tax collected in the tax year.

Qualified Affordable Housing Project means a person that

is organized, qualified, and operated as a limited dividend

Section 203(5) of the MBT Act permits new motor vehicle

housing association that has a limitation on the amount of

dealers

licensed

under

the

Michigan

Vehicle

Code,

dividends or other distributions that may be distributed to its

PA 300 of 1949, MCL 257.1 to 257.923, and dealers of new or

owners in any given year and has received funding, subsidies,

used personal watercraft to collect the Modified Gross Receipts

grants, operating support, or construction or permanent

Tax in addition to the sales price. The act states the “amount

funding through one or more public sources.

remitted to the Department for the [Modified Gross Receipts

Tax] ... shall not be less than the stated and collected amount.”

A limited dividend housing association is organized and

Therefore, the entire amount of Modified Gross Receipts Tax

qualified pursuant to Chapter 7 of the State Housing

stated and collected by new motor vehicle dealers and new or

Development Authority Act (MCL 125.1491 et seq).

used personal watercraft dealers must be remitted to Treasury.

If these criteria are satisfied, a Qualified Affordable Housing

There should be no instance where a dealer would be collecting

Project may deduct its gross receipts attributable to the

amounts of Modified Gross Receipts Tax from customers in

residential rental units in Michigan it owns multiplied by

excess of the amount of taxes remitted to Treasury. Taxpayers

a fraction, the numerator of which is the number of rent

who elect to separately collect the Modified Gross Receipts

restricted units in Michigan owned by that Qualified

Tax, in addition to sales price, under MCL 208.1203(5) may file

Affordable Housing Project and the denominator of which is

and remit the tax as estimated payments with their Corporate

the number of all residential rental units in Michigan owned by

Income Tax Quarterly Return (Form 4913).

the project. This deduction is reduced by the amount of limited

NOTE: Only new motor vehicle dealers and dealers of new or

dividends or other distributions made to the owners of the

used personal watercraft are permitted to separately itemize

project. Amounts received by the management, construction,

and collect a tax imposed under the MBT Act from customers

or development company for completion and operation of the

in addition to sales price, and that authority is limited to only

project and rental units do not constitute gross receipts for

the Modified Gross Receipts Tax imposed and levied under

purposes of the deduction.

Section 203 of the MBT Act. The statute does not authorize

MCL 208.1201(8) governs the termination of this deduction.

separate itemizing and collection of the Business Income Tax

or surcharge by any taxpayer.

UBGs: Leave lines 19a through 19f blank and carry the

amount from Form 4580, Part 2B, line 24g, column C, to Form

UBGs: Add the combined total after eliminations from Form

4567, line 19g.

4580, Part 2B, line 29, column C, to the number on Form 4567,

line 25, and enter the sum on line 26.

Line 20: Enter payments made by taxpayers licensed under

NOTE: For a UBG in which no member charged MGR

Article 25 (Real Estate Brokers and Salespersons) or Article

26 (Real Estate Appraisers) of the Occupational Code [MCL

(Modified Gross Receipts) tax as an invoice item, line 26

339.2501 to 339.2518 and 339.2601 to 339.2637] to independent

should match line 25. For a UBG in which one or more

contractors licensed under Articles 25 or 26.

members charged MGR tax as an invoice item and overcharged

(on a member-by-member basis) for the year, line 26 will be

Line 21: There are three items that qualify for entry on this

larger than line 25 by the combined amount of the members’

line. If more than one type applies, enter the combined total as

pro forma overcharges.

a single amount.

A) For a person classified under the 2002 North American

PART 2: BUSINESS INCOME TAX

Industrial Classification System (NAICS) Number 484, as

If business activity is protected under Public Law (PL) 86-272,

compiled by the United States Office of Management and

complete and include the MBT Schedule of Business Activity

Budget, that does not qualify for a credit under Section

Protected Under Public Law 86-272 (Form 4586). Leave lines

417, enter the payment, made on or after July 12, 2011, to

28 through 50 blank.

subcontractors to transport freight by motor vehicle under a

UBGs: If business activity of a UBG member is protected

contract specific to that freight to be transported by motor

vehicle. Attach a letter to explain the activity that qualifies

under PL 86-272, that member must claim protection by filing

for this subtraction and the date of the payment. Include

Form 4586 (if that member is the DM) or Form 4581 (if a non-

the NAICS code.

designated member). Report only the activities of the member

named on that form. If all members of the UBG are claiming

B) Enter on this line the gross receipts included on line

PL 86-272 protection, then the UBG will leave lines 28

12, which result from the agricultural activity of a person

through 50 blank. So long as one member of a UBG has nexus

Instructions For Form 4567 - Michigan Business Tax Annual Return Page 6

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