12/16/2007
The NFIB Michigan Business Tax (MBT) Plan Estimator is an Excel 2003 spreadsheet based program. Its purpose is to allow users to estimate tax liability under the new MBT that replaces the previous Michigan Single Business Tax (SBT).
Version 7.5.1 is an update to reflect the passage of legislation in December of 2007 that applied a surcharge to the MBT to replace revenue from a repeal of the services tax. On the first worksheet, the Data Entry -- Summary sheet, the MBT surcharge amount is shown below the MBT and Alternative Profits Tax (APT) calculation area. This version also clarifies instructions in the Business Income pop-up note for purposes of entering data in the corresponding cell on the Data Entry -- Summary page.
The upper original Data Entry -- Summary worksheet with the MBT and APT calculation area was left unchanged to allow a comparison of the original MBT and the surcharged MBT.
A new worksheet titled "Surcharge" was added to calculate the surcharge. The surcharge rate is 21.99 percent; however, the total surcharge liability to a taxpayer is capped for each tax year at $6,000,000. Since there are less than a dozen taxpayers in the state that would reach the capped liability, this version does not include the cap in the calculation.
Taxpayers that qualify for the APT method of filing will be exempt from the surcharge in most circumstances. This is because the APT credit is determined by subtracting the total APT tax liability from the total surcharged MBT liability. This method of credit calculation zeroes out the surcharge. The exception are those taxpayers between the APT threshold limits because the APT credit is reduced as a taxpayer moves from the lower to the maximum threshold amounts. The threshold ranges are: Owner Income $160-180K, Gross Receipts $19-20 million. The Adjusted Business Income threshold has no range and is $1.3 million.
Version 7.5.1 also updates the MBT Information Tabbed worksheet to reflect changes from the surcharge legislation.
More information:
- Data is only accepted in the yellow highlighted cells.
- Data cells with small red triangles in the upper right corner include pop-up notes and information.
- More information can be viewed by selecting the worksheet tabs at the bottom of the screen.
The spreadsheet is intended to give the average in-state Michigan business an approximation of tax liability under the MBT. It does not attempt to calculate unique circumstances or narrow exemptions and credits that are part of the MBT but not used by most taxpayers. For more information, select the MBT Information tab at the bottom of the screen or the "Errata" tabbed worksheet at the end of the spreadsheet.
Disclaimer
NFIB/Michigan is providing the MBT Estimator free of charge as a public service to allow business owners and interested individuals to determine approximate tax liability under the MBT. NFIB assumes no liability for incorrect results or determination of tax liability. The MBT estimator is not a substitute for competent counsel from a tax professional. The Estimator may be downloaded, distributed, and shared by users without permission as long as NFIB is referenced as the source. Altering or changing the spreadsheet in any way or removing the NFIB masthead is prohibited without permission.
The spreadsheet will only calculate from information provided by the user. It is the responsibility of the user to determine if the data they input is correct relative to their specific tax situation and the definitions and criteria under the MBT.
If you receive errors after running the spreadsheet with data you input or if the numbers do not seem to be correct, e-mail the spreadsheet, as is, to charles.owens@nfib.org and I will try to determine the problem. Users should check back with the Web site periodically for updated or corrected versions. The highest version number (such as 7.5.1) will be the latest version.
The Errata tabbed worksheet at the back of the workbook lists a history of development, changes, upgrades and corrections.
