The Michigan Business Tax (MBT) filing threshold is $350,000.  If gross receipts are less than $350,000, the taxpayer does not need to file a return or pay a tax.

Although the total gross proceeds from the sale of business assets and the gain from the sale of capital assets are included in the modified gross receipts tax base, they are not included in gross receipts for purposes of the filing threshold.  Gross receipts for purposes of the filing threshold is defined in Section 115 of the Michigan Business Tax Act (MBTA).

Gross receipts for purposes of the modified gross receipts tax base is defined in Section 111(1) of the MBTA. See the instructions for Form 4567, Page 1, Line 11. The definition is all inclusive and includes the total gross proceeds from the sale of business assets and gains from the sale of capital assets.

Sales for purposes of apportionment are defined in Section 115 of the MBTA. It does not include casual transactions, isolated sales, gross proceeds from the sale of business assets or capital gains. See the instruction for Form 4567, Page 1, Line 10.  The definition does not include receipts from the sale of business assets or other non business income.

Section 505 of the Michigan Business Tax Act states: “A taxpayer … whose apportioned or allocated gross receipts are less than $350,000.00 does not need to file a return or pay the tax imposed under this act. The apportioned or allocated gross receipts are defined in Section 115, not Section 111 of the Michigan Business Tax Act.

(1) An annual or final return shall be filed with the department in the form and content prescribed by the department by the last day of the fourth month after the end of the taxpayer's tax year. Any final liability shall be remitted with this return. A taxpayer, other than a taxpayer subject to the tax imposed under chapter 2A or 2B, whose apportioned or allocated gross receipts are less than $350,000.00 does not need to file a return or pay the tax imposed under this act.