Pursuant to the mandate in Section 200(2) of the Michigan Business Tax Act (MBTA) [MCL 208.1200(2)], the Michigan Department of Treasury (Treasury) has issued RAB 07-6 approved on December 28th and posted on the Treasury website.

RAB 07-6 defines "actively solicits" as follows:

"Actively solicits" means purposeful solicitation of persons within this state. Solicitation means
(1) speech or conduct that explicitly or implicitly invites an order; and (2) activities that neither
explicitly nor implicitly invite an order, but are entirely ancillary to requests for an order.

Solicitation is purposeful when it is directed at or intended to reach persons within Michigan or
the Michigan market.

Active solicitation includes, but is not limited to, solicitation through (1) the use of mail,
telephone, and e-mail; (2) advertising, including print, radio, internet, television, and other
media; and (3) maintenance of an internet site over or through which sales transactions occur
with persons within Michigan.

Examples of active solicitation include sending mail order catalogs; sending credit applications;
maintaining an internet site offering online shopping, services, or subscriptions; and soliciting
through media advertising, including internet advertisements.

In evaluating whether acts of solicitation are sufficient to establish "active solicitation," the
Department of Treasury (the "Department" looks to the quality, nature, and magnitude of the
activity on a facts and circumstances basis.

Active solicitation, coupled with $350,000 in Michigan gross receipts, constitutes nexus under
the MBT and satisfies the Due Process and Commerce Clauses of the U.S. Constitution.

The same standards used to determine nexus for out-of-state taxpayers, as described herein, will
be applied to determine whether a taxpayer is taxable in another state for purposes of
apportionment under the MBT. Nexus in a state other than Michigan, for apportionment
purposes, must be documented and will be subject to verification by the Department.

The Michigan legislature has moved Michigan from a "physical presence" nexus standard in the Single Business Tax to an "economic" nexus standard in the Michigan Business Tax.  Because of the anticipated challenge to this standard it is useful to examine what a Revenue Administrative Bulletin is.  RAB 87-2 approved on April 25, 1989 provides the following guidance:

A Revenue Administrative Bulletin is a directive issued by the Commissioner of Revenue. Its purpose is to promote uniform application of tax laws throughout the State by the Bureau of Revenue personnel and provide information and guidance to taxpayers. A Revenue Administrative Bulletin states the official position of the Department, has the status of precedent in the disposition of cases unless and until revoked or modified, and may be relied on by taxpayers in situations where the facts, circumstances and issues presented are substantially similar to those set forth in the Bulletin. A taxpayer must consider the effects of subsequent legislation, regulations, court decisions, and Bulletins when relying on a Revenue Administrative Bulletin.