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Michigan Department of Treasury
4567 (Rev. 04-22), Page 1 of 3 Check if this is an
amended return.
See instructions.
2022 MICHIGAN Business Tax Annual Return
Issued under authority of Public Act 36 of 2007. MM-DD-YYYY MM-DD-YYYY

1. Return is for calendar year 2022 or for tax year beginning: and ending:
2. Taxpayer Name (print or type) 7. Federal Employer Identification Number (FEIN) or TR Number

Doing Business As (DBA) 8. Organization Type (LLC or Trust, see instructions)
C Corporation /
Street Address Check if Individual LLC C Corporation
new address.
(See instructions)
City State ZIP/Postal Code Country Code Fiduciary S Corporation /
LLC S Corporation
3. Principal Business Activity 4. Business Start Date in Michigan
Partnership / LLC Partnership

5. NAICS (North American Industry Classification System) Code 6. If Discontinued, Effective Date 9. Check if Filing Michigan Unitary Business Group Return.
(Include Form 4580.)
10. Check if line 11 includes sales of transportation services.

11. Apportionment Calculation
a. Michigan Sales (if no Michigan sales, enter zero) ................................................................. 11a. 00
b. Total Sales ............................................................................................................................. 11b. 00
c. Apportionment Percentage. Divide line 11a by line 11b ........................................................ 11c. %

PART 1: MODIFIED GROSS RECEIPTS TAX
12. Gross Receipts (see instructions)...................................................................................................................... 12. 00
Subtractions from Gross Receipts
13. Inventory acquired during the tax year .............................................................................................................. 13. 00
14. Depreciable assets acquired during the tax year .............................................................................................. 14. 00
15. Materials and supplies not included in inventory or depreciable property ......................................................... 15. 00
16. Staffing Company: Compensation of personnel supplied to customers ............................................................ 16. 00
If claiming the Small Business Alternative Credit, skip to line 18.
17. Deduction for contractors in SIC Codes 15, 16 and 17 ..................................................................................... 17. 00
SIC Code:
18. Film rental or royalty payments paid by a theater owner to a film distributor and/or film producer ................... 18. 00
19. Qualified Affordable Housing Project (QAHP) Deduction
a. Gross receipts attributable to residential rentals in Michigan ........... 19a. 00
b. Number of residential rent restricted units in Michigan owned
by the QAHP ..................................................................................... 19b.
c. Total number of residential rental units in MI owned by the QAHP .. 19c.
d. Divide line 19b by line 19c and enter as a percentage .................... 19d. %
e. Multiply line 19a by line 19d ............................................................. 19e. 00
f. Limited dividends or other distributions made to owners of the QAHP 19f. 00
g. QAHP Deduction. Subtract line 19f from line 19e ....................................................................................... 19g. 00
20. Payments made by taxpayers licensed under Article 25 or Article 26 of the Occupational Code
to independent contractors licensed under Article 25 or Article 26 .................................................................... 20. 00
21. Miscellaneous (see instructions) ....................................................................................................................... 21. 00
22. Total Subtractions from Gross Receipts. Add lines 13 through 18 and 19g through 21 .................................... 22. 00
23. Modified Gross Receipts. Subtract line 22 from line 12. If less than zero, enter zero ....................................... 23. 00
24. Apportioned Modified Gross Receipts Tax Base. Multiply line 23 by percentage on line 11c ........................... 24. 00
25. Multiply line 24 by 0.8% (0.008) ....................................................................................................................... 25. 00
26. Enrichment Prohibition for dealers of personal watercraft or new motor vehicles. Enter amount collected
during tax year ................................................................................................................................................... 26. 00
27. Modified Gross Receipts Tax Before All Credits. Enter the greater of line 25 or line 26 ............................. 27. 00

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2022 Form 4567, Page 2 of 3 FEIN or TR Number

PART 2: BUSINESS INCOME TAX

28. Business Income. If negative, enter as negative. (If business activity protected under PL 86-272, complete
and attach Form 4586 and/or 4581, as applicable; see instructions) ................................................................ 28. 00

Additions to Income
29. Interest income and dividends derived from obligations or securities of states other than Michigan ................. 29. 00
30. Taxes on or measured by net income ................................................................................................................ 30. 00
31. Tax imposed under MBT .................................................................................................................................... 31. 00
32. Any carryback or carryover of a federal net operating loss ................................................................................ 32. 00
33. Losses attributable to other flow-through entities that are taxed under the MBT ............................................... 33. 00
Account No.
34. Royalty, interest, and other expenses paid to a related person .......................................................................... 34. 00
35. Miscellaneous (see instructions) ....................................................................................................................... 35. 00
36. Total Additions to Income. Add lines 29 through 35........................................................................................... 36. 00
37. Business Income Tax Base After Additions. Add lines 28 and 36. If negative, enter as negative.............. 37. 00

Subtractions from Income
38. Dividends and royalties received from persons other than U.S. persons and foreign operating entities .......... 38. 00
39. Income attributable to other flow-through entities that are taxed under the MBT .............................................. 39. 00
Account No.
40. Interest income derived from United States obligations .................................................................................... 40. 00
41. Net earnings from self-employment. If less than zero, enter zero .................................................................... 41. 00
42. Miscellaneous (see instructions) ....................................................................................................................... 42. 00
43. Total Subtractions from Income. Add lines 38 through 42 ................................................................................ 43. 00

44. Business Income Tax Base. Subtract line 43 from line 37. If negative, enter as negative ..................................... 44. 00
45. Apportioned Business Income Tax Base. Multiply line 44 by percentage on line 11c ....................................... 45. 00
46. Available MBT business loss carryforward from previous MBT return. Enter as a positive number.................. 46. 00
47. Subtract line 46 from line 45. If negative, enter here as negative, skip line 48, and enter zero on line 49. A
negative number here is the available business loss carryforward to the next MBT filing period (see instr.) ..... 47. 00

48. Qualified Affordable Housing Deduction. If line 47 is positive, complete lines 48a through 48i as follows:
(1) If taking the QAHP deduction only, complete lines 48a through 48i. (UBGs, see instructions.) (2) If
taking the seller’s deduction only, skip lines 48a through 48h and carry the amount from Form 4579, line
5, to line 48i. (3) If taking both deductions, complete the QAHP deduction calculation on lines 48a through
48h, and add to the total at line 48i the amount from Form 4579, line 5.
a. Gross rental receipts attributable to residential units in
Michigan ........................................................................................... 48a. 00
b. Rental expenses attributable to residential rental units in Michigan ... 48b. 00
c. Taxable income attributable to residential rental units. Subtract line
48b from line 48a .............................................................................. 48c. 00
d. Number of residential rent restricted units in Michigan owned by
the Qualified Affordable Housing Project .......................................... 48d.
e. Total number of residential rental units in Michigan owned by the
Qualified Affordable Housing Project ................................................ 48e.
f. Divide line 48d by line 48e and enter as a percentage..................... 48f. %
g. Multiply line 48c by line 48f............................................................... 48g. 00
h. Limited dividends or other distributions made to the owners of
the QAHP ......................................................................................... 48h. 00
i. Qualified Affordable Housing Deduction. Subtract line 48h from line 48g. (See instructions.) .................... 48i. 00
49. Subtract line 48i from line 47. If less than zero, enter zero ............................................................................... 49. 00
50. Business Income Tax Before All Credits. Multiply line 49 by 4.95% (0.0495)....................................................... 50. 00

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2022 Form 4567, Page 3 of 3                                                                    FEIN or TR Number 

PART 3: TOTAL MICHIGAN BUSINESS TAX 
51.   Total Michigan Business Tax Before Credits.  Add lines 27 and 50  .............................................................  51.                                               00 
52.  The annual surcharge is no longer applicable. There is no amount to be entered on this line  .........................  52.                                       X X X X X X X X X 00 

53.  Enter amount from line 51. If apportioned or allocated gross receipts are less than $350,000, enter zero  ......  53.                                                               00 
54.  Nonrefundable credits from Form 4568, line 40  ................................................................................................  54.                                00 
55.   Total Tax After Nonrefundable Credits.  Subtract line 54 from line 53. If less than zero, enter zero .............  55.                                                            00 
56.  Recapture of Certain Business Tax Credits and Deductions from Form 4587, line 13 ......................................  56.                                                        00 
57.   Total MBT Tax Liability.  Add lines 55 and 56...................................................................................................  57.                              00 
58.   Corporate Income Tax adjustment from Form 4946, line 39  .............................................................................  58.                                        00 
59.   Total Tax Liability. Add lines 57 and 58 ...........................................................................................................  59.                          00 

PART 4: PAYMENTS, REFUNDABLE CREDITS AND TAX DUE 
60.  Overpayment credited from prior MBT return ....................................................................................................  60.                                00 
61.  Estimated tax payments  ....................................................................................................................................  61.                   00 
62.  There is no amount to be entered on this line. Skip to line 63...........................................................................  62.                    X X X X X X X X X 00 
63.  Tax paid with request for extension  ...................................................................................................................  63.                       00 
64.  Refundable credits from Form 4574, line 23  .....................................................................................................  64.                              00 
65.  Payment and credit total.  Add lines 60 through 64. (If not amending, then skip to line 67.) .............................  65.                                                     00 
                a. Payments made with original and/or amended returns                     66a.                         00 
      AMENDED   b.  Overpayment from original and/or amended returns .  66b.                                           00 
66.   RETURN 
      ONLY      c.  Add lines 65 and 66a and subtract line 66b 
                   from the sum..............................................................  ........................................................  66c.                            00 
67.   TAX DUE. Subtract line 65 (or line 66c, if amending) from line 59. If less than zero, leave blank ....................  67.                                                        00 
68.  Underpaid estimate penalty and interest from Form 4582, line 38 ....................................................................  68.                                           00 

69.  Annual return penalty  (a)          %  =  (b)                       00 plus interest (c)    00 .  Total ......  69d.                                                                00 
70.   PAYMENT DUE.  If line 67 is blank, go to line 71. Otherwise, add lines 67, 68 and 69d ..................................  70.                                                      00 

PART 5: REFUND OR CREDIT FORWARD 
71.   Overpayment. Subtract lines 59, 68 and 69d from line 65 (or line 66c, if amending). 
      If less than zero, leave blank (see instructions)  .................................................................................................  71.                          00 
72.   CREDIT FORWARD. Amount on line 71 to be credited forward and used as an estimate for next tax year ....  72.                                                                       00 
73.   REFUND.  Amount on line 71 to be refunded.....................................................................................................  73.                                00 

Taxpayer Certification.   I declare under penalty of perjury that the information in this Preparer Certification.   I declare under penalty of perjury that this 
return and attachments is true and complete to the best of my knowledge.                  return is based on all information of which I have any knowledge. 
                                                                                          Preparer’s PTIN, FEIN or SSN 
      By checking this box, I authorize Treasury to discuss my return with my preparer. 
Authorized Signature for Tax Matters                                                      Preparer’s Business Name (print or type) 

Authorized Signer’s Name (print or type)                Date                              Preparer’s Business Address and Telephone Number (print or type) 

Title                                          Telephone Number 

                Return is due April 30 or on or before the last day of the 4th month after the close of the tax year. 
WITHOUT PAYMENT. Mail return to:                                            WITH PAYMENT. Pay amount on line 70. Mail check and return to:
  Michigan Department of Treasury, PO Box 30783, Lansing MI  48909             Michigan Department of Treasury, PO Box 30113, Lansing MI  48909 
                                                                            Make check payable to “State of Michigan.” Print taxpayer’s FEIN or TR 
                                                                            Number, the tax year, and “MBT” on the front of the check. Do not staple the 
                                                                            check to the return. 

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                                                                         Instructions for Form 4567 
                                                 Michigan Business Tax (MBT) Annual Return 
                                                                                                              of  the  DM. 
Purpose 
To      calculate  the Modified            Gross    Receipts         Tax    and     Business                  NOTE on Designated Members:                               If the  UBG  filed MBT                      in
Income   Tax  for standard              taxpayers.        Insurance         companies                         2011  and  elected      to file  MBT      in 2012,  then  the  UBG  must  use  
should   file       the    MBT Insurance Company Annual Return for                                            the  same  DM      if the  DM  still  has  nexus  and      is still      a member      of
Michigan Business and Retaliatory Taxes                                  (Form  4588) and                     the  UBG      in 2012.      If the  DM  no  longer  has  nexus          or is no  longer  
Financial   Institutions  should  file the                       MBT Annual Return for                           a member      of the  UBG,          then  the  UBG  must select                  a new    DM.  
Financial Institutions (Form 4590).                                                                           See   the  “Supplemental  Instructions for                  Standard       Members                    in
                                                                                                              UBGs”      in Form  4600  for  the  rules  on  selecting      anew                   DM. 
NOTE: Beginning January                          1, 2012, only        those    taxpayers         with    
    a certificated credit,      which            is awarded but       not    yet   fully    claimed           NOTE  on  Certificated  Credits  and  the  UBG:          If a member  
or utilized,      may       elect       to be MBT    taxpayers.                  If a taxpayer files          of      a UBG  holds      a certificated  credit  and  wishes     to                claim  that  
an   MBT  return  and claims                      a certificated     credit,  the taxpayer                    credit   then  the  entire UBG,            and     not  only  the   member,         must             
makes  the  election      to continue      to file  and  pay  under  the  MBT                                 make  the  election      to remain  taxable  under  the  MBT.   The  UBG  
until  the  certificated  credit  and  any  carryforward      of that  credit                                 must  file  and  pay under         the     MBT     until   the  certificated        credit           
are  exhausted.                                                                                               and  any  carryforward      of that  credit  are  extinguished.  
                                                                                                              For   MBT,    taxpayer means      a person          or a UBG                  liable       for  tax,  
Special Instructions for Unitary Business Groups 
                                                                                                              interest,   or  penalty. Beginning                 January           1, 2012,    only  those         
       AUnitary Business Group (UBG)                            is a group      of United       States        taxpayers  with      a certificated            credit,  which           is awarded         but  not  
persons,  other  than      a foreign  operating  entity,  that  satisfies  the                                yet  fully  claimed           or utilized,       may  elect      to be    MBT      taxpayers.          
following  criteria:                                                                                          If      a taxpayer  files  an MBT          return    and   claims                a certificated  
                                                                                                              credit,  the  taxpayer  makes  the  election      to file  and  pay  under  the  
  •     One      of the  persons     owns      or controls,          directly      or indirectly,  
                                                                                                              MBT  until  the  certificated  credit  and  any  carryforward      of that  
        more  than  50  percent      of the  ownership  interest  with  voting  
                                                                                                              credit  are  exhausted. 
        rights   (or  rights  comparable                  to voting  rights)  of the            other    
        United  States  persons;  AND                                                                         For   more  information  on UBGs,                  see  the  instructions          for  the          
  •     The   UBG  has  operations which                result     in             a flow   of  value          MBT Unitary Business Group Combined Filing Schedule                                                 
        between   persons  in the          UBG      or  has      operations         that  are                 (Form  4580),  and  the  “Supplemental  Instructions  for  Standard  
        integrated  with,  are dependent              upon,              or contribute      to each           Members      in UBGs”      in the              MBT  Forms and  Instructions for 
        other.  Flow      of value      is determined  by  reviewing  the  totality                           Standard Taxpayers  (Form  4600). 
        of   facts and   circumstances           of business         activities     and                       The  gross  receipts                of a UBG      is the  sum      of the   gross  receipts          
        operations.                                                                                           of   each  person included             in  the   UBG,     other  than                    a foreign  
For  more  information on               the   control     and     relationship        tests     for           operating  entity          or a person  subject      to the  tax      as an  insurance  
UBGs,   see  Revenue Administrative                          Bulletin    (RAB)        2010-1                  company      or financial  institution,  less  any  gross  receipts  arising  
Michigan   Business  Tax-Unitary  Business Group                                  Control       Test          from  transactions  between  persons  included      in the  UBG.  Gross  
and   RAB  2010-2 Michigan                    Business       Tax-Unitary            Business                  receipts      of each  member  should  reflect  the  accounting  method  
Group  Relationship  Tests  on  the  Department      of Treasury  Web                                         that  member  used      to compute      its federal  taxable  income. 
site   at     www.michigan.gov/taxes   . (Click                        on   the “Reference                            business  income of                  a UBG      is the  sum of     the     business          
                                                                                                              The
Library”  link  on  the  left  side      of the  page.)                                                                    of  each person       included        in  the  UBG,     other    than                    a
                                                                                                              income
       Aforeign operating entity                means      a United States                 person             foreign   operating  entity  or                  a person  subject         to the  tax  as an        
that   would  otherwise  be                   a part  of        a UBG  that             is taxable   in       insurance   company  or financial                  institution,   less     any  items                
Michigan;  has  substantial  operations  outside  the  United  States,                                        of   income  and related          deductions       arising    from      transactions,                
the   District  of Columbia,               any   territory       or  possession       of the                  including   dividends,  between persons                    included       in  the  UBG.              
United  States  except  for  the  commonwealth      of Puerto  Rico,      or                                  Business  income      of each  member  should  reflect  the  accounting  
   a political  subdivision      of the  foregoing;  and      at least  80  percent                           method   that  member used               to  compute       its federal     taxable                   
of   its   income           is active  foreign  business  income as                 defined                in income. 
Internal  Revenue  Code  (IRC)      § 871(l)(1)(B)(ii). 
                                                                                                              In   general,  phase-ins, thresholds,              credit    limits,    and other                    
In   Michigan,      a UBG         with  standard members                    must    file   Form               components  used      to determine  tax  liability  relate      to the  group  
4567.      A Designated  Member (DM)                      must       file   the   return   on                 as      a single  taxpayer,  not      to individual  persons  that  comprise  the  
behalf   of  the standard         members           of  the      group.     In                a parent-       group.  Exceptions      to this  general  rule  are  noted      in instructions  
subsidiary  controlled  group,  the  controlling  member  must  serve                                         to  the  applicable  forms.  The  group      of persons  on  the  combined  
as  DM          if it has  nexus  with  Michigan.          If it does  not  have  nexus,                      return      is treated      as the  taxpayer      (a distinct  entity)  for  purposes  
the  controlling  member may                  appoint        any   member         with     nexus              of  the  MBT  Act. 
to  serve      as DM.  The  tax  year      of the  DM  determines  the  filing  
period  for  the UBG.          The      combined        return       must   include        each               Taxpayer Certification                  
tax  year      of each  member  that  ends  with      or within  the  tax  year                                    A return    filed  by      a UBG  must be          signed    by    an  individual               

                                                                                                                                                                                                              15

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authorized      to sign    on  behalf                   of the  DM.  Provide                a telephone              Revenue  Service  (IRS) audit                 document,                  if applicable.      Include  
number  for  that  individual      at the  DM’s  office.                                                             all  forms  filed with       the   original       return,     even                 if not  amending  
                                                                                                                     each     form.  Enter  the figures            on  the    amended            return     as they             
General Instructions                                                                                                 should  be. 
Dates  must      be entered      in MM-DD-YYYY  format.                                                              Do not include a copy of the original return with the 
For  periods  less  than  12  months,  see  the  “General  Information                                               amended return. 
for  Standard  Taxpayers”  section      in Form  4600.                                                               NOTE:   A         taxpayer  may not            amend                a return  to revoke            the     
                                                                                                                     election      to remain  taxable under                the    MBT.   Once the                 taxpayer  
    A person    that          is a disregarded            entity   for  federal income             tax             
                                                                                                                     makes      a valid election          to  claim                 a certificated credit,             the        
purposes under       the    internal          revenue         code       shall     be  classified              as   
                                                                                                                     taxpayer          must  remain in       the   MBT       until    the  credit       and  any                   
   a disregarded entity           for   the  purposes              of filing the      MBT           annual         
                                                                                                                     carryforward      of that credit          are   exhausted.           
return. 
                                                                                                                     Refund Only:   If            apportioned  or  allocated gross                      receipts       are        
                                                                                                                  
   A taxpayer,     other         than   a UBG, that does not                    file         a separate              less than       $350,000      and   there           is no recapture,          and      the  taxpayer          
federal   return  must prepare                          a pro  forma federal          return       or                   is filing      Form     4567      to claim      a refund      of estimates           paid,  skip           
equivalent   schedule  and  use                      it as   the  basis for          preparing     its                              13 through      57 and lines    64  through        67.   
                                                                                                                     lines
MBT return.       For   standard           members                     of a UBG, this       pro     forma          
requirement      is  addressed in            Form          4580,      Part  2A, and          its                     UBGs:   If        combined apportioned                     or allocated gross           receipts          of   
instructions.                                                                                                        all  members  (before eliminations)                     are   less    than   $350,000             and      
                                                                                                                     there      is no  recapture, and         the   taxpayer                   is filing  Form  4567            
UBGs:  Complete  Form 4580                        before     beginning            Form     4567.                     solely      to claim   a   refund          of estimates paid,        Form     4580       must         also   
Answer lines           1 through          8 of Form             4567      as they         apply      to the          be  included.  The designated                 member       must       complete         Part  1A,           
DM.                                                                                                                  Part 2B        (skip  lines   18    through     65),      Part         3, and Part               4 of Form  
MBT Liability:             Beginning   January 1,                       2012,              a taxpayer                4580. For         each  member      listed           in Part 1A,    complete           Part   1B      and    
calculates  MBT  liability                     as the   greater          of MBT      liability     after             2A (skip         lines  18   through      65).  See      Form         4567  for  instructions              
all   credits,  deductions, and             exemptions             or   hypothetical            CIT                  on completing          that   form.      
liability   minus  deductions and                 credits       available         under      that                  
act   and  minus certificated             credits         allowed       under        the  MBT.                       Simplified Calculation                         
This   calculation  of liability             requires                 a taxpayer  to calculate                               the  “2015  General Information                   for    Standard     Taxpayers”                   
                                                                                                                     See
                                                                                                                     in
the   business  income and               modified          gross      receipts       tax  bases                        the          Michigan Business Tax for Standard Taxpayers 
and   available  MBT credits,                including          certificated         credits,                                      4600)  for  instructions on           “Computing              the  Simplified                   
                                                                                                                     (Form
deductions,  and  exemptions available                          under     the     MBT.       Then,                                      for   eligible     taxpayers.         
                                                                                                                     Calculation”
the  taxpayer  will  calculate  the  CIT  comparison  on  the  Schedule 
of Corporate Income Tax Liability  (Form 4946).                                           A  taxpayer   is   
                                                                                                                     Line-by-Line Instructions 
permitted      to reduce  hypothetical  CIT  liability  by  all  deductions  
and  credits  which would                be  allowed         under        that  tax             as well      as      Lines not listed are explained on the form. 
the  amount      of certificated  credit  allowed  under  the  MBT.   The                                            Line  1:    If    not      a calendar-year  taxpayer, enter                  the      beginning               
amount   of   certificated  credit allowed                      under     the     MBT                    is the      and   ending  dates (MM-DD-YYYY)                           that    correspond          to the                 
amount      of nonrefundable  credit  needed      to offset  MBT  liability                                          taxable  period as      reported to      the  IRS. 
or  the  entire  amount          of a refundable  credit. 
                                                                                                                     Tax year  means  the  calendar year,                    or    the   fiscal   year      ending                
   If the   taxpayer’s     hypothetical              CIT     liability  would be                higher               during  the  calendar  year,  upon  the  basis      whichof                             the  tax  base  
than   its  MBT liability,          the   taxpayer           will     add   the  difference                          of       a taxpayer      is computed.          If a return is      made for           a      part of          a
to   MBT    liability  on line           58  of   Form       4567.        This                  is the  CIT          year,  tax  year means          the     period   for    which       the     return     is made.               
adjustment.     If   the  result               of both       steps      of the    calculation          is a          Generally,       a taxpayer’s            tax  year      is for the    same    period         as    is        
negative   number,  the taxpayer                  will       receive              a refund  of the                   covered          federalby its      income  tax  return. 
lower   negative;  but                 a nonrefundable  credit cannot                     be    used               
to   reduce liability     below          zero.    Remaining             nonrefundable                                Line  2:  Enter  the complete                 address     and,     if other      than  the                    
certificated    credit  may  be carried                   forward                 to succeeding  tax                 United  States,  enter  the  two-digit abbreviation                            for  the  country  
years.                                                                                                               code.   See  the list       of  country       codes     in                  MBT Forms and 
                                                                                                                     Instructions for Standard Taxpayers  (Form  4600). 
For purposes of this calculation:                              For      a Partnership  or                      S   
Corporation,   business  income includes                           payments          and     items                   Any   correspondence  regarding the                     return      filed    and/or       refund              
of  income  and expense             attributable                   to the  business        activity            of    will  be  sent          to the  address       used  here. Check             the    new     address           
the partnership              or S corporation and             separately           reported              to the      box      if the  address  used  on  this  line  has  changed  from  the  last  
members.                                                                                                             filing.   The     taxpayer’s  primary address                  in   the     Department            of       
                                                                                                                     Treasury          (Treasury)  files,  identified as              the  legal   address        and              
Amended Returns: To  amend                                 a current      or prior        year  annual               used     for  all  purposes other          than     refund       and   correspondence                        
return,  complete  the  Form  4567  that      is applicable  for  that  year,                                        on      a specific    MBT       return,  will not        change       until   the      customer               
check the    box       in the upper-right             corner           of the return,       and     attach           specifically      makes  the change            on      their   Michigan          Treasury                    
   a separate sheet   explaining           the     reason         for    the  changes.           Include             Online        (MTO)  account. Visit               michigan.gov/mtobusiness  for  
an   amended  federal return              or               a signed  and dated             Internal                

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more information.                                                                                           tax purposes,            including                a single member              LLC           or Q-Sub, must              
                                                                                                            file              as if it were   a   sole proprietorship                if owned by             an individual,  
UBGs:  In  the  Name field,                enter   the     name                 of the  DM  for  the    
                                                                                                            or      a branch      or division      if owned      by another business                         entity.      
standard  members      of this  UBG. 
Line  3:  Enter      a brief  description of                   business         activity    (e.g.,          Line                                                                                                                    
                                                                                                                      9: Check this box                     if filing   a Michigan                 UBG return and                   
                                                                                                            include      a Form 4580                for   each      member               of the UBG        included              in   
forestry,  fisheries,         mining,             construction,                manufacturing,            
                                                                                                            this filing.      
transportation, communication,                      electric,         gas,   sanitary        services,   
wholesale trade,       retail     trade,        finance,          or services, etc.).                       Line  10:  Check  this box                              if the  taxpayer has           sales     that  are               
                                                                                                            receipts      from  transportation services.                          Taxpayers            that  check                   
Line 4:   Enter the     start     date       of first business            activity       in Michigan. 
                                                                                                            this    box  also must            complete            lines    11a,    11b,  and 11c.            To                      
Line 5:    Enter      the  entity’s  six-digit  North American                           Industry           calculate Michigan                 Sales        from     Transportation                Services,       see       the     
Classification      System  (NAICS) code.                      For              a complete  list of         instructions for            line       11  and       the    table          in the “Sourcing               of Sales  
six-digit  NAICS  codes, see                  the  U.S.    Census          Bureau     Web     site          to Michigan”             section             of these instructions.            
  at www.census.gov/eos/www/naics/,      or enter the                               same      NAICS     
code used     when     filing     the  entity’s        U.S.      Form        1120,     Schedule      K;     Line 11:                                                                                                                
                                                                                                                             For   a Michigan-based taxpayer,                                   all sales       are                 
                                                                                                            Michigan   sales  unless the                      taxpayer       is subject           to tax  in                         
U.S.    Form  1120S; U.S.            Form       1065;      or U.S.          Form  1040,                 
                                                                                                            another  state.      A taxpayer                   will  be  deemed subject                                to a tax      in
Schedule C.   
                                                                                                            another  state      if the             taxpayer  has due               process        and    commerce                    
Line  6:  Enter      the  date,            if applicable,         on  which the          taxpayer           clause  nexus  with that                 state.     In     that  state,     the     taxpayer        must                 
went out         of existence.      If the taxpayer                is still subject           to another    be   subject  to              a business  privilege tax,                          a net  income tax,                    a
tax   administered  by Treasury,                or    continues           to  exist   but  has              franchise   tax  measured by                        net    income,                  a franchise  tax for                 
stopped doing        business           in Michigan, do            not       use   this  line.    Also,     the   privilege  of  doing business,                               a Corporation  stock tax,                    or       
do not     use  this  line        if the taxpayer                    is a UBG and      one   member            a tax      of the    type  imposed under                  the     MBT       Act,              or that     state       
has stopped      doing    business.                                                                         has  jurisdiction      to subject  the  taxpayer      to one      or more      of such  
                                                                                                            taxes  regardless                 of whether      or not  the  tax      is imposed.  
A  discontinuance          may        be       processed        by        updating     the    account    
by  using  the Michigan           Treasury         Online         (MTO)           website.    Visit                If Michigan no        sales, enter          zero.    
michigan.gov/mtobusiness for more                            information.           
                                                                                                            MBT       is  based only              on  business         activity      apportioned             to                      
Line 7:      Use    the  taxpayer’s Federal                 Employer              Identification            Michigan.      A taxpayer                 that      has  not  established nexus                     with     one         
Number   (FEIN)  or the           Michigan            Treasury            (TR)     assigned                 other   state  or             a foreign         country            is subject  to  MBT on              their             
number.  Be sure            to use  the  same account                     number  on all       forms.       entire   business  activity. Business                          activity                 is apportioned  to               
                                                                                                            Michigan based                on  sales. 
   If the  taxpayer      does  not have            an      FEIN         or TR     number,               
the  taxpayer         must         register          before               filing     this      form.        Sale   or    Sales means  the amounts                        received         by    the    taxpayer                     as
Taxpayers           are        encouraged                  to           register        online           at consideration  from  the  following: 
www.michigan.gov/mtobusiness                             . Click on        the  quick    link     “New   
                                                                                                              •    The   transfer  of  title to,              or  possession         of,    property         that                is   
Business”      for  information  on  how                       to obtain      a FEIN,        which   is   
                                                                                                                   stock   in  trade or           other     property        of                a kind  which would                    
required   to  submit           a return  through e-file.                  Taxpayers        usually     
                                                                                                                   properly  be  included                      in the  inventory      of the           taxpayer      if on  
can   obtain    an  FEIN  from the              IRS      within         48  hours.    Taxpayers         
                                                                                                                   hand      at the  close      of the  tax  period,      or property  held  by  the  
registering   with  the State         online       usually           receive      an  account           
                                                                                                                   taxpayer   primarily  for sale                   to   customers          in  the  ordinary                        
number  within  seven  days. 
                                                                                                                   course      of its     trade      or business.            For     intangible  property,  the                      
Returns received        without             a registered  account number                      will  not            amounts  received  will  be  limited      to any  gain  received  from  
be  processed  until  such  time          as a number      is provided.                                            the  disposition      of that  property. 
NOTE:  TR  numbers  are generally                          assigned         to  accounts      that            •    Performance      of services  which  constitute  business  activities. 
have  not  acquired      an FEIN.  Once      an FEIN      is received,  Treasury                              •    The   rental, leasing,             licensing,         or use      of   tangible        or                         
will   use  the FEIN     as    the    account         number,                      if provided.  To                intangible       property, including                  interest,        that     constitutes                       
change   account      numbers,              a taxpayer          should       submit  Form 163                      business activity.              
so  Treasury  can  update the              records       and      make      sure   the   account              •    Any combination                      of business activities             described         above.         
numbers  are  linked. 
                                                                                                              •    For taxpayers         not   engaged                in any other    business          activities,       sales   
UBGs:  Enter  the FEIN               or    TR   Number            of the     DM      for the                       include interest,           dividends,          and    other     income          from     investment           
standard  members      of this  UBG.                                                                               assets and        activities     and      from       trading     assets       and    activities.       
Line 8:     Check   the        box  that describes              the       DM’s     organization             Complete             the  Apportionment Calculation                           using     amounts        for            
type.      A Trust          or a Limited        Liability         Company          (LLC)  should            the  taxpayer’s  business activity                         only.     Do     not     include     amounts               
check  the  appropriate  box  based  on      its federal  return.                                           from      an interest          in a Partnership,      S Corporation,      or LLC. 
NOTE:   A       person that                is a disregarded entity           for   federal    income        Use   the    information in               the     “Sourcing          of  Sales                   to Michigan”  
tax  purposes  under  the  internal  revenue  code  shall      be classified                                section   of         these  instructions                    to determine  Michigan sales.                            If   
as      a disregarded  entity for             the  purposes          of  filing    the  MBT                 sales  reported  are  adjusted  by      a deduction  for  qualified  sales      to
annual return.       This    means          that         a disregarded entity            for   federal          a qualified customer,                    as determined  by the             Michigan            Economic  

                                                                                                                                                                                                                              17

- 7 -

Growth   Authority  (MEGA), attach                    the    Anchor   District      Tax             most  instances.  Taxpayers  and  tax  professionals  are  expected      to
Credit  Certificate      or Anchor Jobs             Tax    Credit  Certificate       from           be  familiar  with  uncommon  situations  within  their  experience,  
the  Michigan  Economic  Development  Corporation  (MEDC)      as                                   which   produce  gross  receipts not                identified       by  specific   lines               
support.                                                                                            on   Worksheet  4700, and             report      that  amount       on the   most                      
For   sales  from  the  performance of      services, see              RAB        2010-5,           appropriate                                                                                            
                                                                                                                     line. Treasury may               adjust    the figure     resulting                   
“Michigan  Business  Tax  Where  Benefit of      Services is      Received,”                        from                                                                                                   
                                                                                                              the worksheet          to account properly for such                 uncommon                 
on   the  Treasury Web          site    at          www.michigan.gov/treasury/  ,                   situations. 
under  “Reports  and  Legal  Resources.”                                                                A taxpayer     should      compute         its  gross    receipts    using  the same                
For  transportation  services  that  source  sales  based  on  revenue                              accounting  method  used                    in the  computation      of its       net  income  
miles,   enter      a sales amount           on  Line   11a   by  multiplying       total           for  federal  income  tax  purposes. 
sales   of  the  transportation service             by   the  ratio   of Michigan                   Producers  of Agricultural Goods:                          The total       gross   receipts             
revenue   miles  over revenue                miles    everywhere      as provided                   from   all  business activity           must    be reported          on line  12,                       
in  the  “Sourcing of      Sales to      Michigan” chart           for  that    type   of           including   the  gross receipts             from    agricultural      activity    of                     a
transportation service.            Revenue mile            means  the transportation                person  whose  primary  activity      is the  production      of agricultural  
for       a consideration      of one     net    ton      in weight or      one passenger           goods.   A  subtraction is          allowed        on  line   21 for     the  gross                     
the  distance of      one  mile.                                                                    receipts  that  have  been  included  on  this  line  that  are  from  the  
NOTE: Only transportation                      services  are  sourced  using  revenue               agricultural  activity          of a person  whose  primary  activity      is the  
miles.   To  the  extent the        taxpayer        has  business     activities     or             production      of agricultural  goods.  
revenue   streams not         from       transportation       services,     those                                                                                           The  total gross                
                                                                                                    Producers of Oil or Gas, and Minerals: 
receipts  should be      sourced  accordingly.                                                                   from  all  business  activity  must  be  reported  on  line  12,  
                                                                                                    receipts
PART 1:    MODIFIED GROSS RECEIPTS TAX                                                              including  the  gross  receipts  from  the  production      of oil  and  gas  
Line 12:     Gross receipts  means                  the  entire  amount received          by        even      if this  activity      is subject      to the     Severance      Tax  on  Oil                or
the  taxpayer,      as determined by           using     the  taxpayer’s    method       of         Gas,   and     Minerals,  1929 PA            48.          A subtraction      is allowed            on  
accounting  for  federal  income tax                purposes,     from      any   activity,         line  21  for  the gross      receipts      that    have    been     included     on  this              
whether in      intrastate,  interstate, or      foreign  commerce,  carried  out                   line  that  are  from  the  production      of oil  and  gas  that  are  subject  
for  direct   indirect   or gain,        benefit      oradvantage to   the        taxpayer      or  to  the  Severance  Tax  on  Oil      or Gas,  and  Minerals. 
to  others,  with  certain  exceptions. 
                                                                                                    Line  13:  Enter inventory              acquired       during      the tax   year,                      
Calculation      ofgross receipts         also   involves     a deduction         of any            including   freight,  shipping, delivery,                 or  engineering         charges               
amount  deducted      as bad debt              for  federal   income    tax  purposes               included      in the  original  contract price              for    that  inventory,       and           
that   corresponds  to items             of  gross    receipts   included       in the              any  pre-paid  sales  tax  required          to be paid  on  the  inventory      at the  
modified   gross  receipts tax            base      for  the  current  tax  year     or             time      of purchase.      Neither     pre-paid  sales  tax, nor          the    sales        tax      
past  tax  years.  This  reduction      isreflected in      the          Gross Receipts             collected  upon  resale              of that   inventory      is excluded         from         gross  
Worksheet (Worksheet  4700)  discussed  below.  Receipts  include,                                  receipts  calculated  on Worksheet                  4700.    This    must    be   reported              
but  are  not  limited    to:                                                                       on  line  12      of Form  4567. 
  • Some      allor      receipts  (sales  proceeds)  from  the  sale      assetsof                 Inventory  means  the stock                    of goods,    including  electricity  and                 
    used           ina business  activity.                                                          natural   gas,     held  for  resale            in the  ordinary  course                    of a retail  
  • Sale      products.of                                                                           or   wholesale  business,  and finished                 goods,     goods   in  process                  
  • Services  performed.                                                                            of      a manufacturer,       and  raw  materials purchased                from    another              
                                                                                                    person.   Inventory  also includes                shipping    and     engineering                       
  • Gratuities  stipulated  on a      bill. 
                                                                                                    charges   so   long  as such        charges        are  included               in the  original         
  • Sales  tax  collected  on  the  sale      tangibleof             personal  property,            contract   price  for the         associated       inventory       and  floor     plan                  
    subject to           a phase-out  schedule.                                                     interest  for  licensed  new  car  dealers.  
  • Dividend  and  interest  income. 
                                                                                                    For   purposes  of this       deduction,                floor  plan  interest             means  
  • Gross  commissions  earned.                                                                     interest  paid  that  finances  any  part      of the  person’s  purchase      of
  • Rents.                                                                                          new  motor  vehicle  inventory  from      a manufacturer,  distributor,  
  • Royalties.                                                                                      or   supplier.  However, amounts                  attributable       to  any  invoiced                  
  • Sales of      scrap  and  other  similar  items.                                                items                                                                                               
                                                                                                              used   to provide         more favorable floor plan assistance                            to
                                                                                                       a person    subject      to the    tax  imposed under             this  act  than                     to a
  • Client  reimbursed  expenses  not  obtained          in an agency  capacity.                    person  not  subject      to this  tax  are  considered  interest  paid  by      a
  • Gross    proceeds  from sales              between       affiliated  companies,                 manufacturer,  distributor,      or supplier. 
    including members                     of a UBG. 
                                                                                                    For      a person  that          is a securities     trader,    broker,      or dealer          or a
Use Worksheet           4700,       in Form  4600,      to calculate  gross  receipts.              person  included      in the        UBG      of that        securities  trader, broker,                 
                                                                                                    or   dealer  that  buys and         sells   for   its  own    account,     inventory                    
Attach   the  worksheet to          the      return.  Gross   receipts      are not                                contracts that       are  subject     to the  Commodity                                  
                                                                                                    includes
necessarily   derived  from the                federal   return,  however,          the                              Act,       7 USC         1 to  27f; the    cost     of  securities    as               
                                                                                                    Exchange
worksheet   will  calculate  gross receipts                  as  defined    by    law  in                       under   IRC           § 475(c)(2); and       for       a securities trader,           the   
                                                                                                    defined

18

- 8 -

cost      of commodities      as defined under              IRC       § 475(e)(2); and      for              calculating  total  income  on  the  taxpayer’s  federal  income  tax  
    a broker      or dealer,  the  cost           of commodities      as defined        under                return.  
IRC      § 475(e)(2)(b),      (c),  and (d),         excluding    interest    expense                 
other  than  interest  expense  related      to repurchase  agreements.                                  UBGs:                                                                                                         
                                                                                                                  This subtraction                 is only       available     to a member   of the 
                                                                                                         UBG      if the  group    does  not claim               the   SBAC         for        the  tax  year.          
As  used         in this  provision: 
                                                                                                         However,   for  purposes of             the     SIC     code     requirement,                           it is  
  • Broker  and          dealer  mean  those terms             as   defined      under                   sufficient  that  the  UBG  member  that  made  the  payments  listed  
    section  78c(a)(4)  and  (a)(5)      of the  Securities  Exchange  Act      of                       above   be  included           in SIC      codes  15,  16,  or 17.               Therefore,         the        
    1934,      15 USC  78c.                                                                              relevant   SIC    code         is entered  in  the member’s                      page      of  Form            
  • Securities trader means   a   person                 that   engages          in the trade     or     4580  (Part  2A,  Line  22),  and  the  SIC  code  field  on  Form  4567  
    business      of purchasing          and   selling  investments  and trading                         should      be left  blank          by a UBG. 
    assets.                                                                                              Persons   included in          SIC     codes     15, 16,         and     17    include                         
Inventory  does  not  include  any      of the  following:                                               general                                                                                                       
                                                                                                                   contractors  (of  residential  buildings  including 
                                                                                                         single-family          homes;                 industrial,                commercial,                  and  
  • Personal   property  under lease                 or  principally    intended        for              institutional   buildings; bridges,                 roads,       and     infrastructure,                       
    lease  rather  than  sale.                                                                           etc.);  operative      builders;             and          trade          contractors              (such        
  • Property  allowed      a deduction      or allowance  for  depreciation                              as  electricians,      plumbers,                painters,          masons,                 etc.).   See        
    or  depletion  under  the  IRC.                                                                      http://www.osha.gov/pls/imis/sic_manual.html  for a                                         more               
                                                                                                         complete list.    
  • Labor  costs. 
                                                                                                            Asubcontractor   is         an    Individual  or entity               that    enters      into             a
Line  14:  Enter  assets  purchased from                   other    firms,    including                  contract and      assumes         some           or all      of the  obligations          of a person  
the  costs      of fabrication  and  installation,  acquired  during  the  tax                           included      in SIC  codes  15,  16,  and          17 as set  forth      in the  primary  
year          of a type  that  are,      or under  the  IRC  will  become,  eligible                     contract   specific  to              a project.  Thus, payments                  made       to  an             
for   depreciation, amortization,              or    accelerated     capital     cost                    independent contractor                  to provide general              labor     services              to the  
recovery  for  federal  income  tax  purposes.                                                           contractor  not specific                   to a particular  contract do                 not  constitute  
                                                                                                         purchases   from  other firms.                However,           payments             made   to               a
Line   15:  To  the  extent  not  included      in inventory      or depreciable  
                                                                                                         subcontractor       for  services and            materials            provided           under             a   
property,   enter  materials  and supplies,                including       repair     parts           
                                                                                                         contract  specific             to a particular          construction  project  (such as                        
and  fuel. 
                                                                                                         the   construction  of  commercial property                           on  Main           Street)  do           
Materials and supplies               means  tangible personal                 property                   constitute purchases            from     other    firms.          There          is no limitation          or   
purchased in the tax year that are ordinary and necessary                                                condition  that  the subcontractors                           to whom      such          payments  are         
expenses to be used in carrying on a trade or business                                                  .made      be licensed. 
Materials   and  supplies includes                repair   parts  and      fuel.    Fuel                 The    taxpayer  bears the           burden      to  prove                         it is entitled     to   a   
means  materials  used  and  consumed      to produce  heat      or power                                deduction      in computing  its tax                liability.                     It is presumed     that  
by  burning.  Fuel  does  not  include  electricity.                                                     good  business  practice would                  include       documentation                such            as   
Line 16:   A  staffing company                 may   deduct    compensation             of                  a written contract    that      would         support               a deduction from            gross       
personnel   supplied  to its          clients,       including  wages,       benefits,                   receipts   for  payments to            subcontractors                as  purchases         from                
workers’   compensation  costs, and                  all   payroll  taxes     paid    for                other   firms.  The supporting                information             for  payments         to             a   
personnel   provided  to the          clients        of  staffing   companies         as                 subcontractor  could  be incorporated                      into       the  contract        for  the            
defined  under  MBT.          Staffing company              means          a taxpayer  whose             specific   project  or  memorialized                              in a separate          contract  with        
business   activities  are  included                    in Industry  Group  736 under                       a subcontractor      specifying  the project                      to  which        the  costs               
the  Standard  Industrial Classification                   (SIC)  Code             as compiled           pertain. 
by  the  United  States  Department      of Labor.                                                               18:  Enter  film rental           or    royalty       payments           paid      by              a   
                                                                                                         Line 
Payments          to a staffing    company           by      a client  do  not  constitute               theater owner               to a film   distributor,      a film           producer,          or a film  
purchases  from  other  firms.                                                                           distributor and      producer.          
Line  17:  For       taxpayers  that fall         under    SIC  major        groups     15               Line                                                                                                          
                                                                                                                 19:  Enter any           deduction       available            to                 a Qualified          
                                                                                                         Affordable Housing              Project    (QAHP).          
(Building   Construction General                  Contractors       and    Operative             
Builders),   16  (Heavy Construction                 Other     Than     Building                         Public  Act  (PA)  168      of 2008  provides  for      a deduction  from  the  
Construction  Contractors),  and  17  (Construction  Special  Trade                                      modified   gross  receipts  and apportioned                           business        income      tax          
Contractors)  and  do not          claim     the     Small   Business        Alternative                 bases  for      aQualified       Affordable  Housing  Project. 
Credit   (SBAC)          under  MCL  208.1417,  the  following payments                               
                                                                                                         Qualified  Affordable  Housing  Project                                 means      a person  that              
are  considered  purchases  from  other  firms: 
                                                                                                            is organized,    qualified,          and     operated  as                   a limited  dividend             
  • Payments      to subcontractors  for      a construction  project  under                             housing   association  that has                       a limitation  on the               amount     of         
        a contract  specific      to that  project,  and                                                 dividends      or other        distributions  that  may be                 distributed                  to its  
  • To   the  extent  not  deducted as               inventory  and     materials       and              owners      in any  given  year  and  has  received  funding,  subsidies,  
    supplies,   payments  for materials                 deducted     as purchases                        grants,   operating support,              or  construction             or permanent                            
    in   determining  the cost           of  goods      sold   for  the  purpose      of                 funding  through  one      or more  public  sources. 

                                                                                                                                                                                                                 19

- 9 -

      Alimited    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.  
                                                                                                               There  should      be no  instance  where      a dealer  would      be collecting  
   If these      criteria      are   satisfied,      a Qualified        Affordable  Housing              
                                                                                                               amounts     of  Modified  Gross Receipts                       Tax   from     customers            in         
Project   may  deduct its              gross    receipts    attributable        to the                       
                                                                                                               excess      of the   amount      of taxes           remitted      to Treasury.            Taxpayers  
residential   rental  units in         Michigan                     it owns  multiplied by               
                                                                                                               who   elect  to  separately collect                the   Modified         Gross     Receipts                  
   a fraction,     the     numerator  of which              is  the    number     of rent                
                                                                                                               Tax,      in addition      to sales  price,  under  MCL  208.1203(5)  may  file  
restricted       units in      Michigan      owned          by that     Qualified                        
                                                                                                               and  remit  the tax              as estimated         payments  with  their               Corporate 
Affordable        Housing  Project  and the                 denominator                 of which   is   
                                                                                                               Income Tax Quarterly Return  (Form  4913).  
the number              of all residential    rental    units         in Michigan owned                by    
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                
                                                                                                               separate  itemizing  and collection                          of the  Business         Income  Tax             
MCL 208.1201(8)              governs    the      termination              of this deduction.          
                                                                                                               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             
                                                                                                               4580, Part   2B,      line    29,    column                C, to the number        on  Form         4567,     
4567,  line  19g. 
                                                                                                               line 25,    and  enter    the   sum       on   line     26.  
Line 20:  Enter  payments  made by                      taxpayers          licensed       under              
Article   25  (Real  Estate Brokers                   and   Salespersons)         or    Article                NOTE:                                                                                                        
                                                                                                                             For   a UBG in          which        no    member        charged        MGR                    
                                                                                                               (Modified      Gross  Receipts) tax                as  an   invoice       item,     line 26                   
26   (Real    Estate  Appraisers)                  of the   Occupational  Code [MCL                      
                                                                                                               should      match  line 25.         For             a UBG  in which           one    or  more                 
339.2501      to 339.2518 and           339.2601             to 339.2637]      to independent  
                                                                                                               members charged             MGR        tax            as an invoice item    and      overcharged               
contractors  licensed  under  Articles          25 or 26. 
                                                                                                               (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
       contract  specific      to that          freight      to be      transported       by  motor            UBGs:                                                                                                         
                                                                                                                             If business           activity     of   a UBG member                     is protected 
                                                                                                               under PL     86-272,        that     member         must     claim      protection         by       filing    
       vehicle. Attach               a letter      to explain  the  activity  that  qualifies  
                                                                                                               Form 4586          (if that member               is the DM)            or Form 4581                 (if a non-
       for   this  subtraction  and the               date          of the   payment.  Include               
                                                                                                               designated  member).  Report  only the                         activities            of the    member  
       the  NAICS  code. 
                                                                                                               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        
       whose  primary  activity  (i.e.,  more  than  50  percent      of gross                                 with   Michigan  and  exceeds the                   protections                 of PL   86-272,  all          
       receipts)      is the  production      of agricultural  goods.                                          members      of the      UBG  —  including members                         protected           under          
                                                                                                               PL   86-272     —  must be          included          when      calculating        the    UBG’s               
       C)  Enter  on  this  line  the  gross  receipts  included  on  line  12  
                                                                                                               Business Income           Tax     base      and     apportionment             formula.          PL       86- 
       which  result  from  the  production      of oil      or gas,  and  minerals  
                                                                                                               272 will     only     remove      business          income        from      the    apportionable              
          if that  production      of oil      or gas,  and  minerals      is subject      to the  
                                                                                                               Business  Income  Tax  base when                      all   members                of the    UBG          are  
       Severance  Tax      on Oil      or Gas,  1929 PA              48.    
                                                                                                               protected under          PL   86-272.       
Line  26: Enter  the amount                        of MBT     Modified          Gross  Receipts              
Tax collected              in the tax   year.                                                                  Line        Business income                                                                                  
                                                                                                                       28:                                  means that part of              federal      taxable            
                                                                                                               income      derived  from business               activity.       For   MBT         purposes,                  
Section       203(5)    of  the MBT          Act      permits   new        motor  vehicle                      federal taxable income means taxable                            income           as defined by      IRC       
dealers   licensed   under   the   Michigan   Vehicle   Code,                                                     § 63, except  that    federal       taxable       income       shall         be calculated          as if
PA  300      of 1949,         MCL      257.1      to 257.923,         and    dealers      of new      or       IRC      § 168(k) [as    applied            to qualified property           placed              in service  
used  personal  watercraft      to collect  the  Modified  Gross  Receipts                                     after December          31,   2007]       and   IRC            § 199 were   not           in effect. For      
Tax      in addition      to the       sales    price.  The act         states  the     “amount                   a Partnership          or S Corporation (or          LLC       federally        taxed        as such),  
remitted      to the       Department  for the          [Modified            Gross      Receipts               business    income       includes  payments and                   items    of     income        and           
Tax]      ... shall  not  be  less  than  the  stated  and  collected  amount.”                                expense     that are     attributable         to business         activity        of the                      

20

- 10 -

Partnership   or      S Corporation  and separately                      reported          to    the               to   that  individual, or                a common  trust established                  under    the        
partners      or shareholders.                                                                                     Collective Investment            Funds        Act       of 1941,      is not included              in the  
                                                                                                                   Business       Income     Tax  base.  This exclusion                only        applies            to the  
Use   the       Business Income  Worksheet                      (Worksheet                 4746),  in          
                                                                                                                   specific types            of taxpayers identified           above.      Investment           income       
Form 4600,             to calculate business            income.     Attach           the  worksheet            
                                                                                                                   and  any  other  types                of income   earned      or received             by   all   other  
to     the  return. The       worksheet       will     calculate     business            income                
                                                                                                                   types      of persons      or taxpayers not        specifically           referenced        must        be   
as     defined  by law        in  most    instances.        Taxpayers           and tax                        
                                                                                                                   included      in the business        income          of the  taxpayer. 
professionals         are  expected to        be       familiar  with           uncommon                       
situations   within  their experience,                 which       produce            business                     Additions to Income 
income  not  identified by              specific       lines  on   the  worksheet,               and               Additions  are  generally required                to    the    extent    deducted          in             
report  that  amount  on  the  most  appropriate  line.  Treasury  may                                             arriving      at federal  taxable  income.  (Business  income,  line  28.) 
adjust   the  figure resulting            from       Worksheet         4746        to account                  
properly  for  such  uncommon  situations.                                                                         Line  29:  Enter  any interest               income        and  dividends           from                  
                                                                                                                   bonds  and  similar  obligations      or securities      of states  other  than  
For   an  organization that                       is a mutual  or  cooperative electric                            Michigan  and  their political               subdivisions               in the   same  amount             
company   exempt  under IRC                         § 501(c)(12),               business  income                   that  was  excluded  from federal                 taxable      income      (as   defined         for      
equals   the  organization’s excess                    or  deficiency           of revenues                        MBT  purposes).  Reduce  this  addition  by  any  expenses  related  
over  expenses      as reported      to the            federal     government  by  those                           to   the  foregoing  income that              were   disallowed          on     the     federal           
organizations   exempt  from  the federal                     income            tax      under   the               return      by IRC      § 265      or 291. 
IRC,  less  capital  credits  paid      to members      of that  organization,  
less   income      attributed             to equity      in another      organization’s  net                       Line  30:  Enter  all taxes              on,  or  measured       by, net        income                    
income,       and  less income          resulting      from                a charge  approved                      including  city  and  state  taxes,  Foreign  Income  Tax,  and  Federal  
by      a state  or  federal regulatory              agency    that                   is restricted  for           Environmental  Tax  claimed          as a deduction      on the  federal  return. 
     a specified    purpose       and    refundable                       if it is not   used    for   the         Line  31:  Enter the           Michigan        Business         Tax, including                            
specified purpose.                                                                                                 surcharge,  claimed          as a deduction  on  the  federal  return. 
For      a tax-exempt  person,                business income             means  only that                         Line  32: Enter  any net            operating     loss     carryback                   or carryover  
part      of federal    taxable        income  (as  defined  for MBT                     purposes)                 that   was  deducted in         arriving                at federal  taxable income                 (as    
derived from        unrelated        business         activity.                                                    defined   for  MBT purposes)                 reported      on    line    28.  Enter      this             
For    an    Individual  or an         Estate,  or     for           a Partnership  or  Trust                      amount          as a positive  number. 
organized  for  estate      or gift  planning  purposes,  business  income                                         Line   33:  Enter  any  losses  included      in federal  taxable  income                                 
       is that  part  of  federal  taxable  income (as                 defined           for  MBT                  (as   defined   for  MBT purposes)                that     are  attributable                   to other  
purposes)  derived  from                 transactions,  activities,  and  sources                               in entities    that  have  made      a valid  election      to file  under  the  MBT                         
the  regular  course                of the  person’s   trade      or business,             including               and  have  filed  under  the  MBT.      If there      is only  one  such  entity  
the  following:                                                                                                    to     report,  enter its    FEIN        or  TR   number                  in the   field  on this         
  •    All   income  from tangible            and      intangible      property                        if the      form.     If   there        is more      than  one such        entity            to report,      enter    
       acquisition,  rental,  lease,  management,      or disposition      of the                                  on   the  form  the FEIN           or    TR   number       of one      of the    entities                   
       property   constitutes  integral parts               of  the    person’s          regular                   and   attach      a list  of  the account         numbers        of      all.   On    the  list           
       trade      or business  operations.                                                                         include      a breakdown              of the  amount      of this  loss           add-back  that  
  •    Gains      or losses  incurred      in the  taxpayer’s  trade      or business                                     is attributable      to each  entity.      In any  case,       the      amount  on  line           
       from   stock  and securities           of  any      foreign     or domestic                                 33  should       be  the  total      of all  losses,  not  just  the  loss      of the  one  
       corporation  and  dividend  and  interest  income.                                                          entity  identified  on  the  form.             
  •    Income   derived  from isolated                 sales,  leases,          assignments,                       UBGs:   It      is  not necessary          to  attach                  a list of  entities     in         
       licenses,   divisions,   or   other   infrequently   occurring                                              connection   with  this  line item             because         all  entities     for     which            
       dispositions,   transfers,  or transactions                 involving             tangible,                    a loss      add-back      is being      reported  have  been identified                  on   the      
       intangible,      or real  property      if the  property          is or was  used      in                   corresponding  line      of Form              4580,          or a similar       list    required      as
       the  person’s  trade      or business  operation.                                                           an  attachment      to Form  4580. 
  •    Income  derived  from  the  sale          of an interest          in a business  that                       Line  34: Enter any              royalty,     interest,          or other expense            paid         to   
       constitutes  an  integral  part      of the  person;’s  regular  trade      or                                 a person     related      to the      taxpayer  by ownership                       or control     for  
       business.                                                                                                   the   use  of  an intangible          asset             if the  person           is not  included         
                                                                                                                   in   the  taxpayer’s UBG.             Royalty,    interest,      or  other       expense                  
  •    Income  derived  from  the  lease      or rental      of real  property 
                                                                                                                   described        here      is not  required             to be  included            if the  taxpayer  
NOTE:  Personal  investment  income, gains                             from         the  sale    of                can   demonstrate  that the              transaction       has             a nontax  business             
property  held  for  personal  use  and  enjoyment,      or other  assets  not                                     purpose   other  than  avoidance                        of this  tax,        is conducted  with             
used          in a trade      or business, and  any     other    income             not   specifically             arm’s-length   pricing and                 rates  and   terms    as applied           in                  
derived  from            a trade  or  business that                 is earned,           received,  or             accordance  with  IRC                 § 482    and  1274(d),  and  satisfies one                           of
otherwise   acquired  by  an Individual,                    an  Estate,         or             a Trust    or       the  following: 
Partnership  organized      or established                  for    estate      or gift         planning              •  Is      a pass-through  of another           transaction         between                    a third  
purposes,      a person organized              exclusively            to conduct investment                             party   and  the related         person      with     comparable           rates    and              
activity     solely    for      a third     party  individual                    or a person     related  

                                                                                                                                                                                                                        21

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    terms.                                                                                                             A)    For   tax  years that       begin       after      December         31,      2009,                  to
  • Results   in double          taxation.          For   this  purpose,          double                               the   extent  included in            federal     taxable         income,          deduct                
    taxation  exists      if the  transaction      is subject      to tax      in another                              the   amount  of               a charitable contribution                 made        to  the            
    jurisdiction.                                                                                                      Advance   Tuition           Payment  fund created                   under         section                 9
                                                                                                                       of   the  Michigan Education                  Trust       Act,   PA    316        of 1986,                 
  •      Is unreasonable      as determined      by Treasury, and                        the   taxpayer          
                                                                                                                       MCL   390.1429.             This      is deductible             only      to the     extent  that       
    agrees  that  the  addition  would      be unreasonable based                                  on    the     
    taxpayer’s facts         and      circumstances.                                                                                               NOT federally                                  
                                                                                                                       contribution  was                                       deductible.
  • The related      person        (recipient                of the transaction)             is organized              B)   Eligible         licensed  marihuana trades                 or  businesses              may        
    under      the  laws  of               a foreign  nation which             has   in    force             a         subtract ordinary            and    necessary           expenses          paid           or incurred  
    comprehensive  income  tax  treaty  with  the  United  States.                                                     during the          tax  year     that  would        be     allowed            if section 280E          
                                                                                                                       of   the  internal revenue            code       were     not    in effect.        Under                
Line 35:  There  currently are                   no    additions         required         that    are                  the  Michigan  Regulation and                    Taxation                 of Marihuana             Act     
recorded  on  this  line.  Leave  this  line  blank.                                                                   (which allows           for  what          is often referred                  to as “recreational”  
                                                                                                                       or   “adult  use” marihuana),                          a marihuana establishment                        
Subtractions from Income                                                                                               licensed          under  that act     is  allowed                      a deduction from                 
Subtractions  are        generally  available                         to the  extent  included                  in     Michigan                                                                                               
                                                                                                                                          income tax for        certain       expenses          not     allowed               in
arriving      at federal  taxable  income  (Business  Income,  line  28).                                              arriving                                                                                               
                                                                                                                                       at federal       taxable income. IRC 280E                          prohibits           a
                                                                                                                       deduction for           any   amount         paid            or incurred      in carrying on            
Line  38:  Enter  any dividends                     and      royalties       received      from                            a trade      or business that      consists              of trafficking      in Schedule  
persons  other  than  United  States  persons  and  foreign  operating                                                     I and      II controlled substances           (e.g.,      marihuana).              However,         
entities,     including,  but not            limited      to,   amounts          determined                            the IRC            is also  structured              to recognize     the  cost              of goods  
under  IRC              § 78 or IRC      § 951      to 965.                                                            sold   before  reaching gross                 profit,     regardless         whether                    
                                                                                                                       taxpayer      is in  the business              of   trafficking      in  marihuana.                     
NOTE:  To          the  extent  deducted                     in arriving      at federal          taxable  
                                                                                                                       Therefore, any           expenses        related             to cost      of goods sold          (and   
income,  any  deduction  under  IRC  250(a)(1)(B)  should      be added  
                                                                                                                       any   other  expenses already                  allowed          in  reaching        federal             
back  on  this  line  (i.e.,  netted  against  subtractions  made  on  this  
                                                                                                                       taxable income)           may      not   be     subtracted           from         the  Michigan         
line). 
                                                                                                                       base. 
Line  39: Enter  any  income  included      in federal  taxable  income  (as  
defined  for  MBT  purposes)  that  are attributable                                   to other    entities            C)                                                                                                     
                                                                                                                             Enter       the Book-Tax deduction                      to the     extent available.               
that  have  made      a valid           election      to file       under      the  MBT         and   have             The                                                                                                    
                                                                                                                              deduction   is only available     to a taxpayer that reported 
                                                                                                                           a Book-Tax          amount       on    Form        4593      with    an      original  2008         
filed  under  the  MBT.             If there      is only       one      such     entity      to report,  
enter      its FEIN      or TR number               in the field     on   this  form.             If there   is        MBT                               
                                                                                                                               annual return.
more than       one  such    entity           to report, enter            on the form    the     FEIN        or    The  Book-Tax  deduction      is calculated      as follows: 
TR number            of one      of the entities        and      attach        a list      of the account   
numbers      of all. On      the      list    include        a breakdown      of the amount                  of        1)   Total      of amount         reported       on  Column                      C of Form         4593  
this  income  subtraction  that                     is attributable      to each        entity.      In any            with   the  original  2008 MBT                   annual         return.   (For               UBGs   ,
case,  the  amount  on  line      39 should      be the  total      of all  income,  not                               compute           the  sum        of the   amounts  reported by                    all  current         
just  the income           of the  one  entity  identified      on the  form.                                          members      of the group            who filed          Form      4593.)    
UBGs:   It     is  not necessary              to  attach                  a list of  entities        in                2)   Calculate        the  amount  needed                    to offset    the      net  deferred        
connection with          this  line         item   because        all     entities    for      which       an          tax   liability of       the  taxpayer         which       results     from the                         
income  subtraction                 is being     reported  have been               identified         on               imposition      of the       business          income        tax,             at a rate      of 4.95%,  
the corresponding           line           of Form 4580,                  or a similar list    required                and   the  modified gross             receipts         tax,                at a rate    of  0.8%,       
as      an attachment      to Form 4580.                                                                               calculated         for  the  first  fiscal period            ending       after      July    12,        
                                                                                                                       2007. 
Line  40: To  the  extent included                           in federal      taxable       income  (as  
defined       for  MBT purposes),             deduct         interest        income       derived                      3)  Take  the  lesser      of the  result      of (1)      or (2). 
from United         States   obligations.            
                                                                                                                       4)   Report  on this        line   4%      of  the     result    of step                        3. The  
Line  41: To  the  extent included                           in federal      taxable       income  (as                 remaining   percentage      of the               amount  from  step                        3 will   be  
defined       for  MBT  purposes), deduct                    any    earnings        that      are  net                 deductible      in future  years. 
earnings       from  self-employment  as defined                          under     IRC               § 1402  
                                                                                                                      A taxpayer         claiming     the   Book-Tax             deduction        must  maintain               
of  the  taxpayer,                or a partner      or LLC       member      of the             taxpayer.  
The     amount  deducted  shall be                  the   amount         properly       reported                   records                                                                                                    
                                                                                                                             and      work papers necessary                      to support       the calculation             
on      a schedule   K-1-form              1065      as self-employment                 earnings  for              and                                                                                                        
                                                                                                                       journal entry identified for the same length   of time that the                                           
federal income        tax    purposes          for      the   tax  year.                                           deduction                                                                                                  
                                                                                                                                 is available,          and   to support   a potential                    audit   of the 
                                                                                                                   taxpayer’s  business      by the  Michigan  Department      of Treasury. 
Line 42:       There    are  three  items that                  qualify      for  entry    on     this           
line.      If more  than  one type             applies, enter          the      combined total                  as Line                                                                                                       
                                                                                                                          45:    If line 45   is negative, enter     as a negative number.   A
                                                                                                                   loss  on  line  45  will  create  (or  increase)  the  MBT  business  loss  
    a single  amount.  
                                                                                                                   carryforward  for  the  next  year. 

22

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Line  46:  Deduct  any available                    MBT           business        loss    incurred                   agreement)   less  rental expenses                        attributable       to residential                     
after  December 31,              2007.    Enter               as a positive number.                                  rental  units      in Michigan,  including,  but  not  limited  to,  repairs,  
                                                                                                                     interest,  insurance,  maintenance,  utilities,  and  depreciation. 
Business loss means      a negative business                             income        tax    base,     after  
apportionment,      if applicable.                                                                                   Specifically,  Partnerships  may  use      a Rental  Real  Estate  Income  
Only  an  MBT  business loss                  may     be       used     and      only     from     prior             and                                                                                                            
                                                                                                                            Expenses            of a Partnership   or an   S Corporation (U.S. Form 
consecutive years           when         the   taxpayer         was           an MBT taxpayer.                       8825)                                                                                                          
                                                                                                                                 to determine   its taxable income attributable   to residential 
                                                                                                                     rental   units  in Michigan.                To   the      extent     that  the Qualified                        
NOTE:  MBT              business  loss carryforward                              is not   the  same  as              Affordable   Housing  Project                          is taxed   as  something other                  than     
the   federal  net operating             loss    carryforward              or  carryback.                     It        a Partnership           or      S Corporation, the              Qualified         Affordable                 
   is also    not   the   same          as a Corporate             Income        Tax      business       loss        Housing   Project  may  use the                   Supplemental               Income       and     Loss          
carryforward.      A CIT                business  loss carryforward                    may        not  be            (U.S.  Form  1040, Schedule                      E)         or the   relevant  portions                 of the  
entered     on  this  line or           applied     against       the   MBT         tax   base.               A      U.S.     Corporation  Income Tax                     Return       (U.S.      Form       1120),    as            
taxpayer      that  acquires  the assets                   of  another     corporation                           in aappropriate.      If the           Qualified  Affordable Housing                        Project                   is a
transaction  described  under section                        381(a)(1)                 or (2)      of the  IRC       Corporation, the            expenses         permitted          should             be limited      to those  
may  deduct  any MBT                 business       loss     carryforward              attributable                  also listed        on  the  Low-Income                Housing         Credit      Agencies         Report       
to that  distributor             or transfer      or corporation.                                                    of   Noncompliance  or  Building Disposition                                 (U.S.    Form     8823)            
                                                                                                                     and U.S.         Form   1040,       Schedule                E. Rental receipts         and     expenses         
Line  47: Subtract  line 46                from     line       45.   Any      negative         amount             
                                                                                                                     must be         calculated        without         regard          to any gain          or loss resulting        
on    line  47       is an  MBT business                   loss  which        may      be  carried                
                                                                                                                     from the         disposition             of rental property.          Also,   since      Partnerships           
forward      to the next         filing   period,           except         to the extent        that   all    or   
                                                                                                                     are   subject  to tax        as                a person under        MBT,         flow-through                  
some portion              of this    business       loss  has  exceeded  its usable                    life       
                                                                                                                     amounts from            other       Partnerships           are  not   considered.            
of ten  tax    years.    
                                                                                                                     Improvements that                 increase        the   value         of the property               or extend  
NOTE: Any  business loss                     created       on    this   return       may       only   be          
                                                                                                                     its   life,  such  as replacing                   a roof    or  renovating               a kitchen,        are  
applied against               a subsequent          MBT  business  income tax                         base.         
                                                                                                                     not   deductible  rental expenses.                     Any     passive       activity       loss                
This   business  loss  may not                be    applied        against                   a subsequent  
                                                                                                                     limitations           applicable  to the         Qualified           Affordable         Housing                 
Corporate Income               Tax     tax  base.    
                                                                                                                     Project’s         federal  return also           apply      for  purposes         of MCL                        
Line  48:   If      line   47      is positive,            enter   the  Qualified  Affordable                        208.1201(7). 
Housing Deduction,                    if applicable.                                                                         Qualified            Affordable             Housing            Project’s            deduction           
                                                                                                                     The
NOTE:   If        claiming both           the  seller’s         and   the     QAHP         deductions,                  is reduced         by   the  amount of             limited      dividends         or other                   
complete the         QAHP        deduction           calculation          on      lines    48a     through           distributions         made  to the          owners        of the     project.      Income                       
48h,   and  add           to the  total          at line     48i  the amount              from     Form              received          by  the management,                construction,           or  development                    
4579, line     5.                                                                                                    company   for  completion and                     operation          of  the  project        and                
                                                                                                                     rental  units  does not            constitute         taxable      income        attributable                    to
PA 168         of 2008 provides           for       a deduction from               the     apportioned               residential  rental  units. 
Business  Income  Tax base                              to a Qualified        Affordable           Housing  
Project  and          a seller   of  residential rental                 units                 to a Qualified         UBGs:  Leave  lines 48a                  through          48h  blank         and  carry      the                
Affordable        Housing  Project. Qualified                      Affordable             Housing                    amount  from  Form 4580,                    Part     2B,    line   45i,      column     C,              to line  
Project      is defined under            instructions           for   line  19.                                      48i. 
The seller     may     take           a deduction from             its   apportioned              Business           When   the        seller  claims               a deduction        for  the year         of  sale,      the      
Income      Tax  base equal              to  the    gain     from       the sale      of  the                        State  will  place               a lien  on    the  property  equal                  to the   amount      of
residential     rental  units to           the  Qualified            Affordable           Housing                    the  seller’s  deduction.      If the  buyer  fails      to qualify          as a Qualified  
Project,    as calculated            on  the  MBT            Qualified           Affordable                          Affordable   Housing  Project or                      fails    to  operate       any  of the                    
Housing       Seller’s     Deduction (Form                   4579).        Enter      the    amount                  residential   rental  units as              rent     restricted      units     in accordance                    
from Form       4579,     line         5. (All MBT          forms,       including         Form        4579,         with   the  operation  agreement within                        15    years       after  the  date               
are available      online          at   www.michigan.gov/mbt.)                                                       of   purchase,  the  lien placed                 on   the   property         for  the  amount                   
                                                                                                                     of   the  seller’s  deduction becomes                     payable          to  the   State.   The               
The   Qualified  Affordable  Housing Project                               may      deduct        from                           is payable     through             a “recapture”      to be          added            to the   tax  
                                                                                                                     lien
its   apportioned  Business Income                         Tax    base     an    amount          equal                                 of  the  buyer         in the   year  the recapture              event      occurs.           
                                                                                                                     liability
to the  product           of the taxable       income             attributable               to residential                  recapture      is calculated             on    MBT Schedule of Recapture of 
                                                                                                                     The
rental   units  in Michigan                      it owns  multiplied by                         a fraction,                                                                                                 (Form  4587),            
                                                                                                                     Certain Business Tax  Credits and Deductions 
the numerator             of which      is the      number      of rent               restricted  units                          is reduced proportionally              for     the  number               of years the     buyer     
                                                                                                                     and
in   Michigan  owned by                 that  Qualified           Affordable           Housing                                         for  the  deduction. 
                                                                                                                     qualified
Project     and  the denominator               of   which                     is the  number of         all       
residential rental        units            in Michigan owned                by    the   project.       MCL           PART   3: TOTAL                    MICHIGAN BUSINESS TAX 
208.1201(8) governs              the     termination                 of this deduction.                              Line  53:         IMPORTANT:   If                     apportioned  or allocated                  gross          
In   general,  taxable income                 attributable           to  residential           rental                receipts   are        less  than $350,000,             enter               a zero  on  this line.                A
units      is gross   rental  receipts attributable                            to residential         rental         return   to  report tax            credit   recapture                   is mandatory,  however,                 
units   in Michigan           (purchased            pursuant         to an       operation                           even          if a taxpayer      is otherwise  not  required                           to file      a return    
                                                                                                                     because      it does  not  meet  the  filing  threshold      of $350,000. 

                                                                                                                                                                                                                                23

- 13 -

Tax Years Less Than 12 Months: If the reported tax year is Refer theto “Computing Penalty and Interest” section Formin
less than 12 months, gross receipts must be annualized. If 4600 todetermine the annual return penalty rate and use the
annualized gross receipts do not exceed $350,000, enter zero on following “Overdue Tax Penalty” and “Overdue Tax Interest”
this line. worksheets.
Annualizing
Multiply each applicable amount, total gross receipts, adjusted WORKSHEET – OVERDUE TAX PENALTY
business income, and shareholder, officer, and partner income, A. Tax due from Form 4567, line 67......... 00
and, for fiscal filers , divide the result by the number of months B. Late/extension insufficientor
the business operated. Generally, a business is considered in payment penalty percentage................ %
business for one month if the business operated for more than C. Multiply line A byline B..................... 00
half the days of the month. If the tax year is less than one month, Carry amount from line C to Form 4567, line 69b.
consider the tax year to be one month for the purposes of the
calculation. WORKSHEET – OVERDUE TAX INTEREST
A. Tax due from Form 4567, line 67......... 00
UBGs: If apportioned or allocated gross receipts before B. Applicable daily interest percentage .. %
intercompany eliminations (gross receipts from Form 4580, C. Number daysof return was past due...
Part 2B, line 17, column A, multiplied by the apportionment D. Multiply line B byline C .................... %
percentage reported on Form 4567, line 11c) are less than E. Multiply line A byline D .................... 00
$350,000, enter a zero on this line. Group members reporting
a period of less than 12 months with this group return must Carry
amount from line E to Form 4567, line 69c.
annualize their gross receipts figure on a member by member
basis. Use each member’s number of months reported in the Line 69c: NOTE: If the late period spans more than one
group’s tax year. Once all applicable members’ gross receipts interest rate period, divide the late period into the number
figures are annualized, add all members’ figures to determine of days in each of the interest rate periods identified in the
the group’s annualized apportioned or allocated gross receipts. “Computing Penalty and Interest” section in Form 4600, and
Line 58: If the amount entered on Form 4946, line 39, is a apply the calculations thein “Overdue Tax Interest” worksheet
positive number, enter that amount on this line. Only a positive separately toeach portion of the late period. Combine these
amount may be entered on this line. interest subtotals and carry the total lineto 66c.
NOTE: Include a completed copy of Form 4946 with this PART 5:REFUND OR CREDIT FORWARD
return regardless of whether an amount is entered on Line 58. Line 71: If the amount of the overpayment, less any penalty
and interest due on lines 68 and 69d is less than zero, enter the
PART 4: PAYMENTS, REFUNDABLE CREDITS, AND difference (as a positive number) on line 70. If the amount is
TAX DUE greater than zero, enter on line 71.
Line 61: Enter the total estimated taxes paid. Include all NOTE: If an overpayment exists, a taxpayer must elect a
payments made on returns that apply to the current tax year. refund ofall or aportion of the amount and/or designate all or
For example, calendar year filers include money paid with the a portion theof overpayment beto used anas estimate for the
combined returns for return periods January through December. next MBT tax year. Complete lines 72 and 73 as applicable.
Line 72: If the taxpayer anticipates an MBT liability in the
Amended Returns Only: filing period subsequent to this return, some or all of any
Line 66a: Enter total payment(s) made with original and/or overpayment from line 71 may be credited forward theto next
prior amended returns for this period. tax year anas estimated payment. Enter the desired amount to
Line 66b: Enter net overpayment received (refund(s) received use estimateas an for the next MBT tax year.
plus credit forward(s) created) from the original
Reminder: Taxpayers must sign and date returns. Preparers
and/or prior amended returns for this period.
must provide a Preparer Taxpayer Identification Number
Line 66c: Add lines 65 and 66a and subtract line 66b from (PTIN), FEIN or Social Security number (SSN), a business
the sum. name, and a business address and phone number.

Line 68: If penalty and interest are owed for not filing Other Supporting Forms and Schedules
estimated returns or for underestimating tax, complete
Federal Forms: Attach copies of these forms to the return.
the MBT Penalty and Interest Computation for Underpaid
Estimated Tax (Form 4582) to compute penalty and interest UBGs: See Form 4580 instructions for information regarding
due. Ifa taxpayer chooses not to file this form, Treasury will federal attachments for members UBGs.of
compute penalty and interest and bill for payment. • U.S. Form 1120 (pages 1 through 4),
C Corporations:
Line 69: Enter the annual return penalty rate on line 69a. Add Schedule D , Form 851 , Form 4562, and Form 4797. If filing
the overdue tax penalty on line 69b to the overdue tax interest as part of a consolidated federal return, attach a pro forma
in line 69c. Enter total on line 69d. or consolidated schedule.
• S Corporations: U.S. Form 1120-S (pages 1 through 4)*,

- 14 -

    Schedule D     , Form  851   , Form  4562   , Form  4797   , Form  8825. 
  • Individuals: U.S.  Form  1040 (pages      1 and 2),          Schedules  C, 
    C-EZ, D, E,  and  Form  4797. 
  • Fiduciaries: U.S.  Form        1041 (pages      1 through 2),  Schedule 
    D,  and  Form  4797. 
  • Partnerships:  U.S. Form         1065       , (pages      1 through 5)*,       
    Schedule D    , Form  4797,  and  Form  8825. 
  • Limited Liability Companies:   Attach   appropriate  
    schedules  listed  above  based  on  federal  return  filed. 
  • Federally Exempt Entities:              In certain  circumstances,             
       a federally  tax  exempt    entity  must  file  an  MBT  return.        In 
    those  cases,  attach  U.S.  Form  990-T  (pages      1 through  4). 
   * Do  not  send  copies      of K-1s.  Treasury  will  request them            if
    necessary. 

                                                                                    25

- 15 -

                                                                       Sourcing of Sales to Michigan 
                                                                                                                   franchises, licenses, contracts, customer lists, 
TANGIBLE AND REAL PROPERTY                                                      
                                                                                                                   computer software, or similar items 
Sale of tangible personal property 
                                                                                                                   Property       is used    by  the    purchaser      in this State.         If      property is      
Property      is shipped      or delivered,               or,      in the      case      of electricity            used      inmore than  one    state,    royalties        or      other income       will   be        
and   gas,  the  contract requires               the     property                    to be  shipped  or            apportioned      tothis State      pro  rata     according         to the      portion    of          
delivered,        to  any purchaser             within    this    State     based       on the                     use   this   in State.   
ultimate destination                  at the point     that   the   property             comes          to rest  
regardless      of the free            on  board       point       or other conditions                   of the       If the   portion      of use      in this  State  cannot be         determined,          the     
sales.                                                                                                             royalties    or  other income           will  be  excluded          from   both  the                 
                                                                                                                   numerator and        the  denominator.             
Property stored                 in transit   for   60  days          or more         prior      to receipt  
by the    purchaser                or the purchaser’s         designee,                  or in the case       of      If the   purchaser      of intangible         property       uses          it or the  rights to      
   a dock sale     not  picked         up   for  60    days        or more, shall               be deemed          the   intangible  property,      in the regular             course     of  its  business             
to   have  come to           rest  at  this     ultimate     destination.         Property                         operations       in  this State,    regardless         of the      location    of the               
stored      in transit  for  fewer  than 60              days      prior             to receipt      by    the     purchaser’s customers.           
purchaser      or the purchaser’s                designee,                  or in the case            of a dock  
                                                                                                                                                                                                                  (IN 
sale not  picked        up     before      60    days,         is not deemed               to have come            SALES FROM PERFORMANCE OF SERVICES
to rest        at this ultimate        destination.                                                                GENERAL) 
                                                                                                                   Receipts from performance of services, in general 
NOTE: Tangible personal property means that                                        term           as defined  
in Section               2 of the     Use  Tax     Act,   Public       Act     (PA)  94              of 1937,      Recipient      of services receives             all      of the benefit         of the  services  
MCL 205.92.                                                                                                        in  this  State.  
Sale, lease, rental or licensing of real property                                                                     If the   recipient      of the  services      receives  some              of the    benefit      of
                                                                                                                   the  services      in this  State,  receipts  are  included      in the  numerator  
Property      is located      in this State.                                                                           the  apportionment  factor      in proportion      to the  extent  that  the  
                                                                                                                   of
Lease or rental of tangible personal property                                                                      recipient receives        benefit         of the services         in this State.     
To  the  extent the          property              is used      in this  State.  Extent      of use                For   more  information regarding                how              a taxpayer  determines             
   is determined           by   multiplying           the    receipts  by               a fraction,  the           where    the recipient        of  services       performed         receives         the              
numerator      is the         number  of days            of  physical          location       of  the              benefit   of those     services,        see RAB          2010-5,    Michigan                         
property      in this        State  during  the lease                    or rental      period      in the         Business       Tax   Where  Benefit                of Services      is Received,           on  the   
tax year     and     the    denominator               is the number               of days      of physical         Michigan         Department of          Treasury       (Treasury)      Web          site  at        
location      of the       property  everywhere  during all                       lease             or rental      www.michigan.gov/taxes. 
periods      in the tax       year.      
   If the   physical         location      of   the  property during              the     lease      or            FINANCIAL SERVICES 
rental period             is unknown      or cannot      be determined, the                       tangible         Sales derived from securities brokerage services 
personal  property                  is used      in the   state          in which       the  property              including  commissions on transactions, the spread 
was   located  at the           time     the    lease  or rental       payer      obtained                         earned on principal transactions in which broker buys 
possession.                                                                                                        or sells from its account, total margin interest  paid 
                                                                                                                   on behalf of brokerage accounts owned  by broker’s 
Lease or rental of mobile transportation property                                                                  customers, and fees and receipts of all kinds from 
owned by the taxpayer                                                                                              underwriting of securities 
To  the  extent property                     is used      in this  State.  For  example,  the                                     the  total dollar    amount         of    receipts   from       securities            
                                                                                                                   Multiply
extent   an  aircraft will             be  deemed        to  be  used                   is determined                              services     by   fraction,   a     the    numerator      ofwhich is   the           
                                                                                                                   brokerage
by   multiplying  all the              receipts    from      the   lease       or rental      of                               securities brokerage        services         to      customers within        this        
                                                                                                                   sales of
the   aircraft  by            a fraction,  the numerator               of      the   fraction                 is           and  the denominator            of      which is      the sales   of      securities         
                                                                                                                   State,
the   number  of  landings of                the   aircraft    in  this     State       and the                                     services      allto  customers.  
                                                                                                                   brokerage
denominator      of the            fraction      is the      total   number      of landings   of   
the aircraft.                                                                                                         If receipts    from     brokerage         services  can be          associated        with        
                                                                                                                      a particular     customer,       but          it is impractical to  associate          the        
                                                                                                                 
  If the    extent   of use   of any            transportation property within this                                receipts  with  the address          of      the customer,       then  the     address      of        
State  cannot  be determined,                   then   the   receipts       are               in this  State            customer  will  be  presumed      beto                the  address      theof          branch  
                                                                                                                   the
                                                                                                              
  if the property has   its principal base   of operations   in this State.                                        office  that  generates  the  transactions  for  the  customer. 
INTANGIBLE PROPERTY (IN GENERAL) 
                                                                                                                   Sales of services  derived directly or indirectly from 
Royalties and other income received for use of or for                                                              sale of management, distribution,  administration, 
the privilege of using intangible  property including                                                              or securities  brokerage  services  to, or on behalf of, 
patents, knowhow,  formulas, designs,  processes,                                                                  a  regulated  investment  company  or  its  beneficial 
patterns,  copyrights,  trade names, service names,                                                                owners,  including  receipts derived directly or 
26

- 16 -

indirectly  from  trustees, sponsors,  or  participants                                                   Gains  from sale of  a loan  not  secured by  real 
of  employee  benefit  plans  that  have  accounts  in  a                                                 property,  including  income  recorded under  coupon 
regulated investment company                                                                              stripping rules of IRC 1286 
To     the  extent the     shareholders         of  the      regulated      investment                    Borrower       is located   this   in        State.*       
company         are  domiciled within              this  State.       For  this  purpose,                
domicile  means  the shareholder’s                   mailing          address      on the                 Credit card receivables, including interest, fees, and                                                     
records   the   of      regulated    investment         company.                                          penalties from credit card receivables and receipts                                                        
                                                                                                          from fees charged to cardholders, such as annual fees 
       If the  regulated     investment        company      or the          person  providing            
management  services   the   to             regulated         investment         company            has   Billing  address   the   of             cardholder      islocated in   this         State.   
actual       knowledge       that  the shareholder’s                primary    residence         or      
                                                                                                          Sale of credit card or other receivables 
principal       place      of business is      different than          the   shareholder’s               
mailing        address,  then the        shareholder’s             primary     residence        or        Billing  address   the   of             customer      islocated in   this          State.  
principal  place      ofbusiness is   the           shareholder’s            domicile.        
                                                                                                          Credit card issuer’s reimbursements fees 
       A separate computation          must     be    made        with   respect   receipts   to         
derived      from each        regulated        investment          company.        Total                  Billing                                                                                      
                                                                                                                      address of   the cardholder is   located in   this State.
amount       of  sales attributable            to  this  State      must    be equal      to              Merchant discounts, computed net of any cardholder 
total  receipts  received by           each     regulated          investment       company               chargebacks, but  not  reduced by any interchange 
multiplied           bya fraction     determined   follows:   as                                          transaction fees or by any issuer’s reimbursement 
  •    The  numerator      of the fraction           is      the average    of      the sum     of        fees  paid to another for charges  made by its 
       the   beginning-of-year  and end-of-year                       number     of  shares               cardholders 
       owned      by   the  regulated investment                 company       shareholders               Commercial  domicile   the   of                  merchant      islocated in   this          State.      
       who have      their   domicile   this   in     State.        
  •    The  denominator      of the fraction           is      the average      of      the sum           Loan  servicing fees derived from loans of another 
       of  the  beginning-of-year and              end-of-year         number         of      shares      secured by real property 
       owned   all   by    shareholders.                                                                  Real  property      islocated in   this               State.     
  •    For  purposes   the   of      fraction,      the   year        will   the   be  tax    year      of
                                                                                                          Real property                is located both           in and out         of this  State and   one           or
       the  regulated  investment company                    that     ends  with      or      within     
                                                                                                          more states            if more than           50 percent      of the fair     market   value           of the  
       the tax    year   the   of taxpayer.      
                                                                                                          real property             is located      in this State.    
Receipts from the origination of a loan or gains from 
                                                                                                          More       than  50 percent             of  the  fair  market       value    of the     real                  
sale of a loan secured by residential real property 
                                                                                                          property      is not        located      in any        one  state,  and the           borrower            is   
Only       if one      moreor of   the    following       apply:                                          located      in this State.*           
  •    Real  property      islocated in   this        State.                                                     If the location       of the security          cannot     be  determined,          then    loan      
  •    Real   property      is located both          within      this  State    and     one     or        servicing fees          for   servicing        either      the    secured          or the unsecured           
       more    other  states and       more     than     50  percent        of the     fair               loans      of another are             in this State          if the lender         to whom the    loan        
       market  value   the   of    real    property   located   is          within     this    State.     servicing service                  is provided      is located      in this State.     
  •    More  than  50 percent          of      the real  property      is      not located      in        
       any one     state   and   the   borrower      islocated in   this            State.*               Loan servicing fees derived from loans of another not 
                                                                                                          secured by real property 
Interest from loans secured by real property 
                                                                                                          Borrower      is located      in this State.*              
Property       is located   this   in   State.      
                                                                                                                 If location     of  the     security      cannot be       determined,          then  loan              
       If property   located   is   both   this   in  State         and   one   more   or        other    servicing fees          for   servicing        either      the    secured          or the unsecured           
states,       if more     than   50   percent      of the  fair market           value      of      the   loans      of another are             in this State          if the lender         to whom the    loan        
real  property   located   is        within     this   State.                                             servicing service                  is provided      is located      in this State.     
       If more    than    50  percent     of   the  fair market        value       of  the    real        
property       is not located        within      any   one         state,   the   if  borrower      is    Sale  of  securities  and  other assets from  investment 
located   this   in     State.*                                                                           and trading  activities, including,  but not  limited  to, 
                                                                                                          interest, dividends, and gains 
The  determination   whether   of               the   real    property         securing   loan   a       
       is located      in this  State  will    be  made      at the time        the    original           Attributable           to  the State              if the  person’s  customer                  is in  this     
                    was  made  and any            and  all  subsequent            substitutions           State,  or          if the  location  of the         person’s       customer          cannot     be           
agreement
     collateral       will   disregarded.   be                                                            determined, both                   of the following:       
of
                                                                                                            •    Interest,    dividends,  and other              income       from     investment                       
Interest from a loan not secured by real property 
                                                                                                                 assets  and  activities and            from     trading      assets   and      activities,             
Borrower       is located   this   in     State.*                                                                including,  but  not  limited to,             investment           securities;     trading             

*A  borrower   considered   is             located      thisin        State      theif  borrower’s  billing  address          thisis in    State.    

                                                                                                                                                                                                                 27

- 17 -

    account assets;           federal    funds;          securities    purchased           and   sold                   gross  receipts  for the          barrel      miles      transported                  in this  State  
    under   agreements      to resell             or  repurchase; options;                   futures                    bear      to the gross    receipts        for    the   barrel     miles     transported           by   
    contracts;      forward  contracts; notional                 principal          contracts                           the person      everywhere.           
    such   as    swaps;  equities; and            foreign        currency      transactions                        •    Gas  by  pipeline              – Proportioned            based  on  the ratio         that  the       
    are      in this  State      if the  average  value      of the  assets      is assigned                            gross  receipts  for the          1,000       cubic      feet  miles    transported                 in   
    to      a regular  place  of business               of  the  taxpayer      within        this                       this State     bear       to the gross         receipts    for    the    1,000      cubic       feet   
    State.                                                                                                              miles transported                 by the person      everywhere.         
    ○ Interest          from  federal funds                sold  and     purchased           and           
          from  securities  purchased  under  resale  agreements  and                                            NOTE:        If a taxpayer can               show       that      revenue      mile      information         
          securities  sold  under  repurchase  agreements  are      in this                                             is not  available     or    cannot       be  obtained without              unreasonable                 
          State      if the     average  value                of the  assets      is assigned      to            expense      to the taxpayer,             receipts         attributable             to this State      will    
                 a regular   place      of business      of the       taxpayer          within  this             be     that  portion of      the     revenue         derived     from    transportation                        
          State.                                                                                                 services everywhere                 performed           that     the  miles          of transportation  
                                                                                                                 services       performed in           this     State   bears     to the  miles         of                      
    ○ Amount                 of receipts    and     other  income  from investment                                                        services  performed everywhere.                         If Treasury                   
                                                                                                                 transportation
          assets and       activities                is in this State       if assets are     assigned                                that  the  information required                   for  the   calculations               
                                                                                                                 determines
          to      a regular  place      of business      of the  taxpayer  within  this                                       are not  available          or cannot        be obtained          without                        
                                                                                                                 above
          State.                                                                                                                        expense              to the taxpayer,      Treasury         may      use   other        
                                                                                                                 unreasonable
  • Amount         of  receipts from        trading         assets    and activities,                            available information                that         in the opinion           of Treasury will       result      
    including,       but     not  limited to,       assets       and  activities        in the                   in      an equitable  allocation      of the taxpayer’s                   receipts      to this  State. 
    matched book,                  in the  arbitrage  book,  and foreign                  currency         
    transactions,         but  excluding  amounts otherwise                         sourced     in               NOTE: For  transportation services                           that  source      sales      based    on         
    this  section,  are            in this  State      if the    assets        are  assigned                 to arevenue miles,          enter   a   sales       amount        on  Form      4567,        Line     11a,   by    
    regular place            of business      of the taxpayer          within        this     State.             multiplying total           sales           of the transportation          service by          the  ratio  
                                                                                                                 of  Michigan  revenue miles                    over    revenue       miles     everywhere                  as   
TRANSPORTATION SERVICES                                                                                          provided      in the table          on   this    page      for    that  type         of transportation  
                                                                                                                 service.       Revenue  mile                means the            transportation         for a                  
Receipts from transportation services                                                                            consideration         of   one  net ton         in     weight    or  one      passenger          the           
Generally, receipts            will be       proportioned  based  on  the  ratio  that                           distance                                                                                                      
                                                                                                                                 of one mile. Only transportation services are sourced 
revenue  miles      of the            person      in this   State  bear              to the  revenue             using                                                                                                         
                                                                                                                             revenue     miles. To the extent                 the taxpayer         has    business             
miles      of the  person  everywhere.                                                                           activities                                                                                                   
                                                                                                                                   or revenue          streams      not from transportation services,                         
                                                                                                                 those receipts         should            be sourced accordingly.               
Receipts   from maritime              transportation             services      will be                     
attributable      to this  State      as follows:                                                                TELECOMMUNICATIONS  SERVICES 
  • 50 percent            of those receipts      that    either   originate               or terminate           Sale of telecommunications service  or mobile 
    in  this  State.                                                                                             telecommunications service, in general 
  • 100   percent  of those           receipts      that    both  originate         and                          Customer’s  place      of primary use                        of the  service          is in this  State.  
    terminate      in this  State.                                                                               As   used  here,          place of primary use                     means  the customer’s                      
Receipts  attributable      to this         State          of a person         whose         business            residential        street  address or           primary         business      street     address               
activity  consists      of the  transportation  of:                                                              where        the  customer’s  use of            the    telecommunications                 service             
                                                                                                                 primarily  occurs.  
  • Property  and  individuals                    – Proportioned            based  on  the  total          
    gross   receipts      for  passenger miles              and  ton        mile    fractions,                   For   mobile telecommunications                        service,       the customer’s                           
    separately  computed  and  individually  weighted  by  the  ratio                                            residential  street  address      or primary  business  street  address      is
    of gross      receipts    from     passenger            transportation                to total gross         the  place      of primary  use  only              if it is within  the  licensed  service  
    receipts   from  all  transportation, and                    by   the      ratio  of gross                   area      of the customer’s          home        service      provider.        
    receipts   from  freight  transportation                           to total  gross  receipts           
                                                                                                                 Sale of telecommunications service  sold on an 
    from  all  transportation,  respectively. 
                                                                                                                 individual call-by-call basis 
      Michigan Ton Miles                                      Gross Receipts from                                Call  both  originates  and  terminates      in this State.                        
                                                  x 
          Total Ton Miles                                  Transportation of Property                            Call either     originates               or terminates      in this State         and     the     service     
                                                                                                                 address      is located      in this State.           

    Michigan Passenger Miles                +                    Gross Receipts from                             Sale of postpaid telecommunications service 
                                                  x 
    Total Passenger Miles                               Transportation of Passengers                                                   point of     telecommunication                  signal   (as first                     
                                                                                                                 Origination
                                                                                                                 identified  by  the service              provider’s          telecommunication                  system       
            =  Michigan Sales from Transportation Services                                                       or      as identified     by    information  received  by the                    seller     from      its    
                                                                                                                 service provider                if system used               to transport telecommunication                  
  • Oil   by     pipeline          – Proportioned          based  on the       ratio      that  the              signals      is not the    seller’s)           is located      in this State.      

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Sale of prepaid telecommunications service  or                                                              Taxpayer whose business activities include live radio 
prepaid mobile telecommunications service                                                                   or television programming as described in Subsector 
Purchaser        obtains the  prepaid        card    or similar        means  of                            Code  7922 of  Industry  Group  792 or  are included  in 
conveyance          at a location      in this State.                                                       Industry Groups 483, 484, 781, or 782, under the SIC 
                                                                                                            Code as compiled by the U.S. Department of Labor, or 
Recharging a prepaid telecommunications service or                                                          any combination of the business activities included in 
mobile telecommunications service                                                                           those groups 
Purchaser’s billing        information         indicates   a   location            in this State.           Media   receipts  are attributable             to  this  State  only if         the               
                                                                                                            commercial   domicile      of the            customer          is in this       State   and  the  
Sale of private communication services                                                                      customer   has      a direct connection               or   relationship       with   the          
100   percent  of the      receipts   from     the      sale  of each        channel                        taxpayer  pursuant          to a contract  under  which  the  media  receipts  
termination  point  within  this  State.                                                                    are  derived. 
100  percent      of the      receipts   from  the sale              of the     total  channel              Media  receipts  from the            sale          of advertising        are  attributable         to
mileage  between  each  termination  point  within  this  State.                                            this  State      if the  customer      of that        advertising      is commercially  
                                                                                                            domiciled   in  this State          and   receives         some     of the    benefit  of         
50  percent      of the  receipts  from  the  sale      of service  segments  for                           the  sale      of that  advertising      in this        State.      Sales  are  included           in
   a channel     between      two   customer       channel  termination points,                             proportion      to the     extent    that  the  customer receives               the  benefit      
one      of which      is located      in this  State  and  the other                    is located         of  the  advertising      in this  State. 
outside      of this  State,  which  segments  are  separately  charged.  
                                                                                                               If the    taxpayer          is a broadcaster       and      if the   customer  receives        
Receipts  from  the sale              of service   for   segments          with          a channel          some      of the  benefit      of the        advertising      in this      State,  the  media     
termination  point  located      in this  State  and      in two      or more  other                        receipts  for  that  sale      of advertising  from  that  customer  will  be  
states   or  equivalent jurisdictions,            and   which       segments          are                   proportioned  based  on  the  ratio  that  the  broadcaster’s  viewing  
not   separately  billed,  are            in this  State  based on                 a percentage             or  listening  audience      in this  State  bears      to its  total  viewing      or
determined       by  dividing the        number         of customer        channel                          listening  audience  everywhere. 
termination  points      in this  State  by  the  total  number      of customer  
channel  termination  points.                                                                               Media property          means  motion  pictures, television                     programs,         
                                                                                                            Internet  programs  and  Web  sites,  other  audiovisual  works,  and  
Sale  of  billing  services and  ancillary  services for                                                    any  other  similar property          embodying            words,       ideas,  concepts,         
telecommunications service                                                                                  images,      or sound       without  regard              to the     means        or methods      of
Based  on  the  location      of the  purchaser’s  customers.                                               distribution      or the  medium      in which  the  property      is embodied. 
   If the   location      of the  purchaser’s  customers                     is not  known  or              Media receipts means  receipts  from  the  sale,  license,  broadcast,  
cannot      be determined,  the  sale      of billing  services  and  ancillary                             transmission,   distribution,  exhibition, or                       other  use  of  media         
services for      telecommunications             service  are      in this  State  based                    property  and  receipts from              the  sale              of media  services.  Media       
on  the  location      of the  purchaser.                                                                   receipts  do  not  include  receipts  from  the  sale      of media  property  
                                                                                                            that          is a consumer  product  that      is ultimately  sold      at retail. 
To access  a carrier’s network or from the sale of 
telecommunications services for resale                                                                      Media services        means  services                   in which    the  use      of the  media  
                                                                                                            property      is integral      to the  performance      of those  services. 
100   percent  of the      receipts   from     access      fees    attributable           to               
intrastate  telecommunications  service that                   both     originates          and             NOTE: Terms  used      to describe  the  sale      of telecommunications  
terminates      in this State.                                                                              service   or  mobile  telecommunications service                         have    the  same        
                                                                                                            meaning      as those       terms  defined              in the   Streamlined  Sales  and          
50   percent  of the      receipts  from       access    fees    attributable         to                    Use   Tax  Agreement administered                     under      the Streamlined                  
interstate   telecommunications service                  if  the   interstate        call                   Sales  and  Use  Tax  Administration  Act,  PA  174      of 2004,  MCL  
either originates          or terminates      in this State.                                                205.801      to 205.833. 
100   percent  of  receipts from          interstate     end     user    access       line              
                                                                                                            OTHER 
charges,      if customer’s  service address                        is in  this State.      As          
used   here,  “interstate  end user          access     line   charges”         includes,                   Default for  all  other  receipts not  otherwise  sourced 
but      is not  limited  to, the   surcharge        approved          by  the  federal                     here 
communications commission                  and   levied     pursuant                   to 47 CFR 69.        Sourced  based  on  where  the  benefit      to the  customer      is received,  
Gross    receipts  from sales       of    telecommunications                 services       to              or      if where  the  benefit            to the  customer      is received         cannot  be    
other   telecommunication  service providers                     for   resale        will   be              determined,  sourced      to the  customer’s  location. 
sourced      to this  State  using the         apportionment           concepts           used              For   more  information regarding                 how             a taxpayer  determines          
for   non-resale  receipts  of telecommunications                      services                  if the     where  the  recipient             of services     performed  receives  the benefit                
information      is readily available                to make that       determination.                 If   of   those  services, see         RAB     2010-5,       Michigan         Business    Tax          
the information            is not readily  available,       then        the   taxpayer        may           Where  Benefit      of Services      is Received,                   on  the  Treasury Web         
use  any  other  reasonable  and  consistent  method.                                                       site      at www.michigan.gov/taxes. 

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