Mich. Comp. Laws » Michigan Compiled Laws / Chapter 208 / Act 36 of 2007
Michigan Compiled Laws

Mich. Comp. Laws § 208.1303 (2026)

Sales factor; calculation.

✓ current as of July 2026
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MICHIGAN BUSINESS TAX ACT


Act 36 of 2007


208.1303 Sales factor; calculation.

Sec. 303.

    (1) Except as otherwise provided in subsection (2) and section 311, the sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax year and the denominator of which is the total sales of the taxpayer everywhere during the tax year.

    (2) Except as otherwise provided under this subsection, for a taxpayer that is a unitary business group, sales include sales in this state of every person included in the unitary business group without regard to whether the person has nexus in this state. Sales between persons included in a unitary business group must be eliminated in calculating the sales factor.

History: 2007, Act 36, Eff. Jan. 1, 2008

Compiler's Notes:

    Enacting section 1 of Act 36 of 2007 provides:

    "Enacting section 1. This act takes effect January 1, 2008 and applies to all business activity occurring after December 31, 2007."

PopularName Notes:

MBT
Notes of Decisions
Cited in 5 cases (1 in the last 5 years), 2014–2023 · leading case: Int'l Bus. MacHines Corp. v. Dep't of Treasury, 852 N.W.2d 865 (Mich. 2014).
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Int'l Bus. MacHines Corp. v. Dep't of Treasury, 852 N.W.2d 865 (Mich. 2014). · cites it 2× “1301(2); MCL 208.1303(1). Neither the Compact nor its apportionment provisions are referred to anywhere in the BTA.”
Gillette Com. Operations North Am. & Subsidiaries v. Dep't of Treasury, 312 Mich. App. 394 (Mich. Ct. App. 2015). “The Michigan Business Tax Act, enacted into law in 2007 and effective January 1, 2008, required foreign business taxpayers to use the apportionment formula contained in the act.”
Vectren Infrastructure Servs. Corp v. Dep't of Treasury (Mich. 2023). · cites it 6× “For a taxpayer whose business activities are subject to tax within and outside Michigan, its tax base is apportioned to Michigan by multiplying its tax base by the sales factor calculated under MCL 208.1303. The sales factor is a fraction, in which the numerator is total sales…”
Graphic Packaging Corp. v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas & Ken Paxton, Attorney Gen. of the State of Texas (Tex. App. 2015). “1301(2); MCL 208.1303(1). Neither the Compact nor its apportionment provisions are referred to In sum, the Legislature in 2011 created a window in anywhere in the BTA.”
EMC Corp. v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas & Ken Paxton, Attorney Gen. of the State of Texas (Tex. App. 2015). “1301(2); MCL 208.1303(1). I disagree that this is a case where Neither the Compact nor its reconciliation is possible.”
— Mich. Comp. Laws § 208.1303(1) — 4 cases
Int'l Bus. MacHines Corp. v. Dep't of Treasury, 852 N.W.2d 865 (Mich. 2014). “1301(2); MCL 208.1303(1). Neither the Compact nor its apportionment provisions are referred to anywhere in the BTA.”
Vectren Infrastructure Servs. Corp v. Dep't of Treasury (Mich. 2023). “For a taxpayer whose business activities are subject to tax within and outside Michigan, its tax base is apportioned to Michigan by multiplying its tax base by the sales factor calculated under MCL 208.1303. The sales factor is a fraction, in which the numerator is total sales…”
Graphic Packaging Corp. v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas & Ken Paxton, Attorney Gen. of the State of Texas (Tex. App. 2015). “1301(2); MCL 208.1303(1). Neither the Compact nor its apportionment provisions are referred to In sum, the Legislature in 2011 created a window in anywhere in the BTA.”
EMC Corp. v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas & Ken Paxton, Attorney Gen. of the State of Texas (Tex. App. 2015). “1301(2); MCL 208.1303(1). I disagree that this is a case where Neither the Compact nor its reconciliation is possible.”
— Mich. Comp. Laws § 208.1303(10) — 1 case
Vectren Infrastructure Servs. Corp v. Dep't of Treasury (Mich. 2023). “For a taxpayer whose business activities are subject to tax within and outside Michigan, its tax base is apportioned to Michigan by multiplying its tax base by the sales factor calculated under MCL 208.1303. The sales factor is a fraction, in which the numerator is total sales…”
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