Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 2
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41GENERAL INFORMATION
Single Business Tax
For example:
The Single Business Tax (SBT) is the only general
- services provided by an independent contractor
business tax levied by the State of Michigan. It was
(e.g., a building contractor or plumber).
enacted in 1976 to replace several previous business
Nontaxable business activity includes:
taxes including the corporate net income tax. The SBT
1. services provided by an employee to his or her
replaced profits-based taxation with value added
employer only;
taxation.
2. services as a director of a corporation;
Before You Begin
3. a casual transaction (e.g. sale of personal
This combined booklet includes the forms and
residence).
instructions for all single business tax filers. The areas
Who Must File an SBT Annual Return?
that apply only to a particular organization type are
Every person who is engaged in business activity in
identified with a bullet and by bolding the organization
Michigan and whose adjusted gross receipts are
type.
$250,000 or more must file an annual return. Adjusted
Example:
gross receipts means gross receipts plus recapture of
• Corporations
the capital acquisition deduction. For companies doing
business outside Michigan, it means apportioned gross
• Individuals
receipts plus recapture of the capital acquisition
The forms are designed for the calendar year 2001 or
deduction. See SBT Reductions to Adjusted Tax Base
for fiscal years beginning in 2001.
(Form C-8000S), page 53, Part 2, lines 9-13 for
Before preparing your SBT return, complete all
calculation. In these instructions, person means an
federal tax forms. These forms may include:
individual, firm, bank, financial institution, limited
• Individuals, Partnerships or Fiduciaries - U.S.
partnership, copartnership, partnership, joint venture,
1040, 1041, 1065 and related Schedules C, C-EZ,
association, corporation, receiver, estate, trust, limited
D, E, K and 4797
liability company or any other combination acting as a
unit for business purposes.
• Corporations - U.S. 1120, 1120A, 1120S and
Schedule K, and U.S. 940.
If your business operated less than 12 months,
annualize your gross receipts to determine if you
• Limited Liability Companies (LLC) - federal
should file. See page 6 for more information.
forms listed above depending on how you have
If you are a member of an affiliated group, a
elected to file your federal return.
controlled group of corporations or an entity under
You will need to reference these federal forms to
common control, the group must sum its members’
complete your Michigan SBT return.
adjusted gross receipts on SBT Adjusted Gross
How Do I Use This Booklet?
Receipts for Controlled Groups (Form C-8010AGR),
Read the General Information. Then review the table
page 61, to determine if members of the group need to
on page 74 to help you determine which forms and
file. Do not include members whose adjusted gross
schedules you need to file.
receipts are less than $100,000; these members are not
required to file an SBT return. If the sum of the
To help you determine your gross receipts and
members adjusted gross receipts are $250,000 or more,
business income, use one of the worksheets on page
all members with adjusted gross receipts that equal
16. Select the appropriate worksheet based on the
$100,000 or more must file an annual return.
organization type of the business.
Members whose adjusted gross receipts are less than
What Is Business Activity?
$100,000 must include their business activity when
Taxable business activity includes:
computing a small business credit on the SBT
1. sale or rental of property, whether the property is
Allocation of Statutory Exemption, Standard Small
real, personal, tangible or intangible.
Business Credit and Alternate Tax for Members of
For example:
Controlled Groups (Form C-8009). These members
must also include their adjusted gross receipts to
- rental of a house or lease of a car;
determine the group’s Investment Tax Credit adjusted
- sale or rental of property used in a business
gross receipts percentage.
activity (e.g., the sale of an income-generating
apartment complex).
2. performance of services for gain, including services
performed outside Michigan.
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