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

Mich. Comp. Laws § 206.115 (2026)

Apportionment of business income; exception; calculation.

✓ current as of July 2026
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INCOME TAX ACT OF 1967


Act 281 of 1967


206.115 Apportionment of business income; exception; calculation.

Sec. 115.

    (1) Before January 1, 2012, all business income, other than income from transportation services, shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is 3.

    (2) After December 31, 2011, all business income, other than income from transportation services, shall be apportioned to this state by multiplying the income by the sales factor calculated under section 121.

History: 1967, Act 281, Eff. Oct. 1, 1967 ;-- Am. 1975, Act 233, Imd. Eff. Aug. 27, 1975 ;-- Am. 2011, Act 38, Eff. Jan. 1, 2012 ;-- Am. 2011, Act 178, Eff. Jan. 1, 2012

Notes of Decisions
Cited in 16 cases, 1981–2013 · 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). · cites it 5× “111 to MCL 206.115] and subject to [MCL 206.255], is allocated to this state.”
Malpass v. Dep't of Treasury, 295 Mich. App. 263 (Mich. Ct. App. 2011). · cites it 13× “111 to MCL 206.115] and subject to [MCL 206.255], is allocated to this state.”
Donovan Constr. Co. v. Dep't of Treasury, 337 N.W.2d 297 (Mich. Ct. App. 1983). · cites it 4× “For the tax years 1971, 1972 and 1973, the act provided the following formulary apportionment method in MCL 206.115; MSA 7.557(1115): "All business income, other than income from transportation services, domestic insurers and financial organizations, shall be apportioned to this…”
Chocola v. Dep't of Treasury, 369 N.W.2d 843 (Mich. 1985). · cites it 2× “[MCL 206.115; MSA 7.557(1115).] "Business income” is defined in Chapter 1 of the act: "Business income” means income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible…”
Bachman v. Dep't of Treasury, 544 N.W.2d 733 (Mich. Ct. App. 1996). · cites it 2× “[MCL 206.115; MSA 7.557(1115).] "Business income” is defined in Chapter 1 of the act as income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the…”
Wheeler Est. v. Dep't of Treasury, 825 N.W.2d 588 (Mich. Ct. App. 2012). · cites it 2× “Under the ITA, if a taxpayer’s income-producing activities are confined solely to Michigan, then the taxpayer’s entire income must be allocated to Michigan. MCL 206.”
Grunewald v. Dep't of Treasury Wortley, 305 N.W.2d 269 (Mich. Ct. App. 1981). “The property, payroll, and sales factors represent the percentage of the total property, payroll, or sales of the business used, paid, or made in this state. MCL 206.116; MSA 7.557(1116), MCL 206.”
Holloway Sand & Gravel Co. Inc. v. Dept. of Treasury, 393 N.W.2d 921 (Mich. Ct. App. 1986). “i Was the Texas speedway business unitary with the Michigan sand and gravel business? We begin our analysis of this issue by rejecting petitioner’s claim that the primary issue is whether the formulary apportionment method set forth in MCL 206.115; MSA 7.557(1115) and admittedly…”
Wisne v. Dep't of Treasury, 625 N.W.2d 401 (Mich. Ct. App. 2001). “[MCL 206.115; MSA 7.557(1115).] “Business income” was defined in chapter 1 of the act as income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the…”
Preston v. Dep't of Treasury, 815 N.W.2d 781 (Mich. Ct. App. 2011). · cites it 2× “” MCL 206.115. “The property, payroll, and sales factors represent the percentage of the total property, payroll, or sales of the business used, paid, or made in this state.”
Chocola v. Dep't of Treasury, 348 N.W.2d 290 (Mich. Ct. App. 1984). · cites it 3× “The other is MCL 206.115; MSA 7.557(1115), which provides a three-factor apportionment formula for "[a]ll business income”.”
Detroit Bank & Trust Co. v. Dep't of Treasury, 377 N.W.2d 425 (Mich. Ct. App. 1985). · cites it 4× “2 As such, petitioner could not employ the apportionment provisions of § 115, MCL 206.115; MSA 7.557(1115): "All business income, other than income from trans *336 portation services, domestic insurers and fínancial organizations, shall be apportioned to this state by…”
Show all 16 citing cases →
— Mich. Comp. Laws § 206.115(2) — 2 cases
Tad Malpass v. Dep't of Treasury, 833 N.W.2d 272 (Mich. 2013). “111 to MCL 206.115] and subject to [MCL 206.255], is allocated to this state.”
Est. of Thomas M Wheeler v. Dep't of Treasury (Mich. 2013).
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