Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 23
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41The sales factor is equal to total sales in Michigan divided
by the total sales everywhere, multiplied by a weighted
Example 2
factor.
Factor
Column A
Column B
Column C
Sales of tangible personal property are attributable to
Property
10%
x
5%
=
0.5%
Michigan if the property is shipped or delivered to any
Payroll
none
purchaser within Michigan regardless of the free on board
Sales
50%
x
90%
=
45%
(F.O.B.) point or other conditions of the sales.
95%
45.5%
Sales other than the sale of tangible personal property
are attributable to Michigan if:
45.5% ÷ 95% = 47.8947% (.478947).
Enter this percentage on line 16.
1. the business activity is performed in Michigan;
2. the business activity is performed both in Michigan and
in other states, but based on the cost of performance, a
Transportation of Oil by Pipeline
greater proportion is performed in Michigan; or
The apportionment percentage used for the transportation of
3. receipts are derived from services performed for
oil by pipeline is based on barrel-miles. Enter on line 17 the
planning, designing, or construction activities within
barrel-miles transported in Michigan during the tax year.
Michigan.
Enter on line 18 the total barrel-miles transported
everywhere during the tax year. Divide line 17 by line 18.
The factor is computed by dividing the total Michigan
Use this percentage to figure your apportioned tax base on
sales on line 13 by the total sales everywhere on line 14.
Form C-8000, line 33.
Transportation of Gas by Pipeline
Example 1
The apportionment percentage used for the transportation of
Factor
Column A
Column B
Column C
gas by pipeline is based on 1,000 cubic-foot miles. Enter on
Property
10%
x
5%
=
0.5%
line 17 the 1,000 cubic-foot miles transported in Michigan
Payroll
10%
x
5%
=
0.5%
during the tax year. Enter on line 18 the total 1,000 cubic-
Sales
50%
x
90%
=
45%
foot miles transported everywhere during the tax year.
46%
Divide line 17 by line 18. Use this percentage to figure your
apportioned tax base on Form C-8000, line 33.
Your apportionment percentage is 46%.
Enter this percentage on line 16.
Other Transportation Services
The apportionment percentage used for other transportation
services is based on revenue-miles. A revenue-mile means
FORMULAS FOR SPECIAL SITUATIONS
the transportation of one net ton of property or one
passenger for the distance of one mile. For example: 40 tons
Fewer Than Three Factors
x 100 miles = 4,000 revenue miles. Enter on line 17 the
If your business does not have three factors, i.e., if line 8, 11
revenue-miles transported in Michigan during the tax year.
or 14 is zero, you must reweight the factors to compute your
Enter on line 18 the total revenue-miles transported
apportionment percentage. To reweight, add the weighted
everywhere during the tax year. Divide line 17 by line 18.
percentages in column C for the factors you have; then add
Use this percentage to figure your apportioned tax base on
the weighting factors in column B for the factors you have.
Form C-8000, line 33.
Divide the sum of column C by the sum of column B. Use
If you transport both property and passengers, determine
this percentage to figure your apportioned tax base on Form
the portion subject to Michigan tax by first computing
C-8000, line 33. See example 2.
separate percentages, as described above, for property
transported and for passengers transported. Then divide your
gross receipts for each activity by the total gross receipts.
Multiply the percentage of gross receipts by the
transportation percentage. Sum the results of both
calculations and use this percentage to figure your
apportioned tax base on Form C-8000, line 33. See
example 3 on page 37.
36
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