11 September 2017 Reminder: Michigan Business Tax (MBT) surcharge expired January 1, 2017 In the August 2017 Treasury Update, the Michigan Department of Treasury reminds taxpayers that the Michigan Business Tax (MBT) surcharge expired on January 1, 2017. Under Mich. Comp. Laws Ann. Section 208.1281, the surcharge would end effective January 1, 2017, if Michigan experienced "positive personal income growth" (e.g., an increase in personal income tax revenue from the prior year) in either 2014, 2015 or 2016. Michigan met these requirements, so the surcharge will no longer apply to those continuing to file an MBT return. For fiscal-year filers whose 2016 tax year end falls after January 1, 2017, the surcharge is calculated by dividing the number of months in the filer's tax year contained in calendar year 2016 by the total number of months in the filer's tax year. The resulting prorated surcharge is then applied to the taxpayer's MBT liability before application of credits. MBT forms and instructions for 2016 and 2017 tax years will reflect the end of the surcharge. Document ID: 2017-1462 |
