Mich. Comp. Laws » Michigan Compiled Laws / Chapter 206 / Act 281 of 1967
Michigan Compiled Laws

Mich. Comp. Laws § 206.111 (2026)

Rents and royalties; allocation.

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INCOME TAX ACT OF 1967


Act 281 of 1967


206.111 Rents and royalties; allocation.

Sec. 111.

    (1) Net rents and royalties from real property located in this state are allocable to this state.

    (2) Net rents and royalties from tangible personal property are allocable to this state:

    (a) If and to the extent that the property is utilized in this state; or

    (b) In their entirety if the taxpayer is a resident partnership, estate or trust or individual of this state or has a commercial domicile in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

    (3) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.

History: 1967, Act 281, Eff. Oct. 1, 1967 ;-- Am. 1969, Act 332, Imd. Eff. Nov. 4, 1969

Notes of Decisions
Cited in 4 cases, 2001–2013 · leading case: Tad Malpass v. Dep't of Treasury, 833 N.W.2d 272 (Mich. 2013).
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Tad Malpass v. Dep't of Treasury, 833 N.W.2d 272 (Mich. 2013). “all taxable income from any source whatsoever, except that attributable to another state under [MCL 206.111 to MCL 206.115] and subject to [MCL 206.”
Malpass v. Dep't of Treasury, 295 Mich. App. 263 (Mich. Ct. App. 2011). · cites it 3× “all taxable income from any source whatsoever, except that attributable to another state under [MCL 206.111 to MCL 206.115] and subject to [MCL 206.”
Wisne v. Dep't of Treasury, 625 N.W.2d 401 (Mich. Ct. App. 2001). “(b) As a distributive share of the net profits of an -unin coiporated a business, profession, enterprise, undertaking, or other activity as the result of work done, services rendered, and or other business activities conducted in this state, except as allocated to another state…”
Est. of Thomas M Wheeler v. Dep't of Treasury, No. 145367 (Mich. June 24, 2013). “22 However, if the income is derived from business activity taxable both within and without this state, the ITA requires an individual taxpayer to “allocate and apportion his net income . . . .”23 The ITA further states that, “[f]or a resident individual, .”
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