Mi22. For purposes of calculating the $350,000 filing threshold in section 505(1); will "gross receipts" as defined in section 111 be used, or will the filing threshold be determined by "sales" as defined in section 115? What

The definition of "gross receipts" will be used to calculate the $350,000.00 filing threshold not the definition of "sales." This is based upon the express language of section 505(1) that the filing threshold is determined by "apportioned or allocated gross receipts."

The term "apportioned or allocated" has the same meaning as in the Michigan Business Tax Act. When a taxpayer's business activity is subject to tax within and outside of Michigan its tax base is apportioned, and business activity confined solely to this state results in the tax base being allocated to Michigan.