Mich. Comp. Laws » Michigan Compiled Laws / Chapter 141 / Act 284 of 1964
Michigan Compiled Laws

Mich. Comp. Laws § 141.621 (2026)

Partial business activity in city; percentage of average net book value; gross rental value of real property.

✓ current as of July 2026
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CITY INCOME TAX ACT


Act 284 of 1964


141.621 Partial business activity in city; percentage of average net book value; gross rental value of real property.

Sec. 21.

    First, the taxpayer shall ascertain the percentage which the average net book value, of the tangible personal property owned and the real property, including leasehold improvements, owned or used by it in the business and situated within the city during the taxable period, is of the average net book value of all of such property, including leasehold improvements, owned or used by the taxpayer in the business during the same period wherever situated. Real property shall include real property rented or leased by the taxpayer and the value of such property shall be deemed to be 8 times the annual gross rental thereon. "Gross rental of real property" means the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer for the use or possession of real property and includes but is not limited to:

    (a) An amount payable for the use or possession of real property or any part thereof, whether designated as a fixed sum of money or as a percentage of sales, profits or otherwise.

    (b) An amount payable as additional rent or in lieu of rent such as interest, taxes, insurance, repairs or other amount required to be paid by the terms of a lease or other arrangement.

History: 1964, Act 284, Imd. Eff. June 12, 1964

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 2018–2024 · leading case: Honigman Miller Schwartz & Cohn LLP v. City of Detroit, 952 N.W.2d 358 (Mich. 2020).
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Honigman Miller Schwartz & Cohn LLP v. City of Detroit, 952 N.W.2d 358 (Mich. 2020). · cites it 6× “624 requires a business to calculate taxable net profit from business activity within a city— the business allocation percentage—by calculating the property factor under MCL 141.621, the payroll factor under MCL 141.”
Honigman Miller Schwartz & Cohn LLP v. City of Detroit, 915 N.W.2d 383 (Mich. Ct. App. 2018). “MCL 141.621. MCL 141.622. MCL 141.623. For the subject years, the back taxes, plus interest and penalty, exceed $1 million.”
Apex Labs. Int'l Inc v. City of Detroit (Mich. Ct. App. 2024). · cites it 3× ““In-city” percentages of property, payrolls and sales, separately computed, shall be determined in accordance with [MCL 141.621 to MCL 141.624]. [MCL 141.620.”
Honigman Miller Schwartz & Cohn LLP v. City of Detroit (Mich. Ct. App. 2018). “11 And we conclude that that plainly expressed meaning does not support respondent’s position nor the conclusion of the tribunal.”
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