The Michigan Business Tax Act (MBTA) will limit revenue from the Michigan Business Tax (MBT) starting in the 2008 state fiscal year through the 2010 state fiscal year. The MBTA specifies that half of the excess revenue above the revenue limit will be deposited in the Budget Stabilization Fund and the other half be returned to taxpayers. [MCL 208.1601]

For the 2008 fiscal year, the revenue limit is $2,398,000,000. Revenue includes the total net cash payment from both the Single Business Tax (SBT) and the Michigan Business Tax (MBT), but excluding revenue from the tax on insurance companies. [MCL 208.1601(1)]

For the 2009 fiscal year, the revenue limit is $2,398,000,000 increased by 1% and the percentage change in personal income from fiscal year 2008 to fiscal year 2009.  (Excluding revenue from the tax on insurance companies) [MCL 208.1601(2)]

For the 2010 fiscal year, the revenue limit is $2,398,000,000 increased by 2.01% and the percentage change in personal income from fiscal year 2009 to fiscal year 2010.   (Excluding revenue from the tax on insurance companies) [MCL 208.1601(3)]

If the revenue limit is exceeded by less than $5 million, all of the excess will be credited to the Budget Stabilization Fund. [MCL 208.1601(4)]

The refund available if the MBT exceeds the revenue limits shall be applied pro rata to the taxpayers that made positive net cash payments during the fiscal year. The taxpayer's pro rata share shall be the total amount to be refunded multiplied by a fraction the numerator of which is the positive net payments made by the taxpayer during the fiscal year and the denominator of which is the sum of the positive net cash payments made by all taxpayers during the fiscal year. [MCL 208.1601(5)]