Michael Van Severen, who is a member of the cross-border tax services group at KPMG in Hamilton, was kind enough to forward to me a “Tax Tip-Off” (I thought it said “Tax Rip-Off” when I first received it). The tip reads in part:
Many Canadian businesses that ship products into the state of Michigan may now be surprised to learn that they are subject to the gross receipts tax component of the Michigan Business Tax (MBT). Also, many Canadian businesses that historically did not have any Michigan sales under the old sourcing rules may now have Michigan sales for purposes of determining apportionment for the MBT and therefore may have a significant MBT liability if total Michigan sales are more than $350,000 during the year.
