Instructions For Form C-8000h - Michigan Sbt Apportionment Formula (Page 3 of 3) in pdf

PART 1: Computation of Apportionment

Example 3: Formula for Transportation Services

Percentage

Michigan revenue-miles

Gross receipts

Line 9, Percentage. Multiply the amount in column

for property

A by 3.75 percent and enter the total in column C.

_________________

_______________

Total revenue-miles

Total gross receipts

Note: The State Treasurer may require periodic

for property

averaging of property values during the tax year if this

is reasonably required to reflect the average value of

Michigan revenue-miles

Gross receipts

the filer’s property.

for people

Line 12, Percentage. Multiply the amount in column

_________________

_______________

A by 3.75 percent and enter the total in column C.

Total revenue-miles

Total gross receipts

for people

Line 15, Percentage. Multiply the amount in column

_____________________________________

A by 92.5 percent and enter the total in column C.

= The apportionment percentage

Line 16, Apportionment Percentage. Add the

percentages in column C, lines 9, 12 and 15 to arrive at

Financial Organizations

the apportionment percentage. Use this percentage to

The apportionment percentage used by a financial

apportion: (1) the tax base on Form C-8000, line 33,

organization is based on gross business. Gross business

unless the taxpayer has fewer than three factors or

is the sum of:

uses a formula for a special situation, (2) the recapture

• Fees, commissions or other compensation for financial

of capital acquisition deduction on Form C-8000D,

services;

and (3) the capital investments and recapture on Form

C-8000ITC.

• Gross profits from trading in stocks, bonds or other

securities;

PART 2: Transportation Services, Financial

• Interest charged to customers for carrying debit

Organizations, or Taxpayers Authorized to Use a

balances of margin accounts without deduction of any

Special Formula

costs incurred in carrying the accounts;

Lines 17-19. Use these lines if the taxpayer: (1)

provides transportation services, (2) is a financial

• Interest and dividends received; plus

organization, or (3) is authorized by the State

• Any other gross income resulting from operations as a

Treasurer to use a special formula. See “Formulas for

financial organization.

Special Situations” on page 37. Attach a detailed

Enter on line 17 gross business in Michigan during the

explanation if these lines are used.

tax year. Refer to RAB 2002-14, Single Business Tax –

PART 3: Capital Acquisition Apportionment

Apportionment and Sourcing for Financial Organizations,

for more information. Enter on line 18 the total gross

Complete this section only if the taxpayer disposed of

business everywhere during the tax year. Divide line 17

depreciable personal property that was acquired in a tax

by line 18. Use this percentage to figure apportioned tax

year beginning before October 1, 1989.

base on Form C-8000, Single Business Tax Annual

Line 23, Average Percentage. If both property and

Return, line 33.

payroll factors exist (e.g., amounts greater than zero

Line-By-Line Instructions

were entered on lines 8 and 11), divide line 22 by 2 to

get the average percentage. If only one factor exists,

If 100 percent of the property and payroll are

enter the percentage shown on line 22.

attributable to Michigan, the taxpayer must show

Use this percentage to compute the recapture of

proof that nexus has been created with another state.

capital acquisition deduction on Form C-8000D, line

Attach the name of the state and a description of the

11.

activity, including the number of days in that state, to

help us verify nexus.

Attach this schedule to the return.

Lines not listed are explained on the form.

Line 2, Account Number. Enter the same account

number used on page 1 of the annual return.

Instructions For Form C-8000h - Michigan Sbt Apportionment Formula Page 3

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