CITY INCOME TAX ACT
Act 284 of 1964
141.623 Partial business activity in city; percentage of gross revenue.
Sec. 23.
Third, the taxpayer shall ascertain the percentage which the gross revenue of the taxpayer derived from sales made and services rendered in the city is of the total gross revenue from sales and services wherever made or rendered during the period covered by the return.
(1) For the purposes of this section, "sales made in the city" means all sales where the goods, merchandise or property is received in the city by the purchaser, or a person or firm designated by him. In the case of delivery of goods in the city to a common or private carrier or by other means of transportation, the place at which the delivery has been completed is considered as the place at which the goods are received by the purchaser.
The following examples are not all inclusive but may serve as a guide for determining sales made in the city:
(a) Sales to a customer in the city with shipments to a destination within the city from a location in the city or an out-of-city location are considered sales made in the city.
(b) Sales to a customer in the city with shipments to a destination within the city directly from the taxpayer's in-city supplier or out-of-city supplier are considered sales made in the city.
(c) Sales to a customer in the city with shipments directly to the customer at his regularly maintained and established out-of-city location are considered out-of-city sales.
(d) Sales to an out-of-city customer with shipments or deliveries to the customer's location within the city are considered sales made in the city.
(e) Sales to an out-of-city customer with shipments to an out-of-city destination are considered out-of-city sales.
(2) In the case of public utilities, or businesses furnishing transportation services, "gross revenue" for the purposes of this section may be measured by such means as operating revenues, vehicle miles, revenue miles, passenger miles, ton miles, tonnage, or such other method as shall reasonably measure the proportion of gross revenue obtained in the city by such business.
(3) In case the business of the taxpayer involves substantial business activities other than sales of goods and services such other method or methods of allocation shall be employed as shall reasonably measure the proportion of gross revenue obtained in the city by such business.
History: 1964, Act 284, Imd. Eff. June 12, 1964
Notes of Decisions
Honigman Miller Schwartz & Cohn LLP v. City of Detroit, 915 N.W.2d 383 (Mich. Ct. App. 2018).
· cites it 3× “The Tax Tribunal's grant of partial summary disposition in favor of respondent is reversed, and the matter is remanded to the Tax Tribunal for further proceedings consistent with this opinion.”
Apex Labs. Int'l Inc v. City of Detroit, No. 363984 (Mich. Ct. App. Jan. 4, 2024).
· cites it 7× “For the final factor, the revenue factor, MCL 141.623 provides: Third, the taxpayer shall ascertain the percentage which the gross revenue of the taxpayer derived from sales made and services rendered in the city is of the total gross revenue from sales and services wherever…”
Honigman Miller Schwartz & Cohn LLP v. City of Detroit, No. 336175 (Mich. Ct. App. Jan. 18, 2018).
· cites it 2× “4 The three factors are: (1) the property factor under § 21, considers what percentage of the business’ tangible personal and real property is located within 1 MCL 141.623. 2 MCL 141.618. 3 MCL 141.620 through MCL 141.”
Honigman Miller Schwartz & Cohn LLP v. City of Detroit, No. 157522 (Mich. Nov. 21, 2018).
“The parties shall address whether the Court of Appeals erred in its construction of the phrase “services rendered within the city” in the Uniform City Income Tax Ordinance, MCL 141.623. The time allowed for oral argument shall be 20 minutes for each side.”
Honigman Miller Schwartz & Cohn, LLP v. City of Detroit, 919 N.W.2d 404 (Mich. 2018).
“The parties shall address whether the Court of Appeals erred in its construction of the phrase "services rendered within the city" in the Uniform City Income Tax Ordinance, MCL 141.623. The time allowed for oral argument shall be 20 minutes for each side.”
Mich. Comp. Laws § 141.623(1): 2 cases
Honigman Miller Schwartz & Cohn LLP v. City of Detroit, 915 N.W.2d 383 (Mich. Ct. App. 2018).
“The Tax Tribunal's grant of partial summary disposition in favor of respondent is reversed, and the matter is remanded to the Tax Tribunal for further proceedings consistent with this opinion.”
Mich. Comp. Laws § 141.623(1)(d): 1 case
Mich. Comp. Laws § 141.623(1)(e): 1 case
Mich. Comp. Laws § 141.623(3): 1 case
Apex Labs. Int'l Inc v. City of Detroit, No. 363984 (Mich. Ct. App. Jan. 4, 2024).
“For the final factor, the revenue factor, MCL 141.623 provides: Third, the taxpayer shall ascertain the percentage which the gross revenue of the taxpayer derived from sales made and services rendered in the city is of the total gross revenue from sales and services wherever…”
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