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MH-1120 MUSKEGON HEIGHTS INCOMETAX
EXTENSION NUMBER
CITY OF CORPORATION RETURN Do NotWrite in this Space
MUSKEGON for the calendar year 20___
HEIGHTS or other taxable period beginning ending
THIS IS NOT A FEDERAL RETURN
NAME Date
Where incorporated incorporated
NUMBER and STREET Principal business activity
PLEASE Main address in Muskegon Heights

TYPE CITY, TOWN or POST OFFICE STATE ZIP CODE Location of Muskegon Heights records
Person in charge of records
OR Telephone Number
PRINT Federal Employer
Identification Number

TAXABLE INCOME COMPUTATION
1. Taxable income before net operating loss deduction and special deductions (per attached copy of U.S.Corporation Income Tax
Return Form 1120 or 1120S (as filed by you with the Federal Internal Revenue Service) 1. $
2. Enter gain or loss from sale or exchange of property included in Line 1 2.
3. Result after excluding Line 2 from Line 1 3.
4. Enter items not deductible under Muskegon Heights Income TaxOrdinance (from P.2, Schedule E, Col. 1, Line 4) 4.
5. Total – add Lines 3 and 4 5.
6. Enter items not taxable under Muskegon Heights Income Tax Ordinance(from P. 2, Schedule E, Col. 2, Line 10) 6.
7. Total – Line 5 Less Line 6 7.
8. Amount in Line 2 above (after excluding any capital loss carryover) applicable to taxable period (see instructions) 8.
9. Total income – add lines 7 and 8 9.
10. Allocation percentage from P. 2, Schedule D, Line 5 – if all business was conducted in Muskegon Heights enter 100% on line 10
and DO NOT fill in Schedule D on Page 2 10. %
11. Total – multiply Line 9 by % on Line 10 11.
12. Less: Applicable portion of net operating loss carryover and/or capital loss carryover (see instructions) 12.
13. Total income subject to tax – Line 11 less Line 12 13.
14. CITY OF MUSKEGON HEIGHTS TAX– multiply Line 13 by 1% 14. •
PAYMENTS AND CREDITS
15. a.Tax paid with tentative return 15a. $
b. Payments and credits on Declaration of Estimated Muskegon Heights Income Tax 15b.
c. Other Credits – explain in attached statement 15c.
16. Total – add Lines 15. a, b, and c 16. •
TAX DUE OR REFUND
17. If your payments (Line 16) are larger than your tax (Line 14) enter amount of OVERPAYMENT 17. • $
18. If your tax (Line 14) is larger than your payments (Line 16) enter amount of BALANCE DUE 18. •
PAY IN FULL WITH THIS RETURN TO “CITY TREASURER” AND MAIL TO:
CITY INCOME TAX ADMINISTRATOR, 2724 PECK STREET, MUSKEGON HEIGHTS, MICHIGAN 49444
19. Amount on Line 17 to be: (A) Credited on next year’s Estimated Tax (B) Refunded
A. Name and address of resident agent in Michigan Do Not Write in Space Below
B. Is this a consolidated return? Yes No If yes, list names and addresses of included corporations in an attached File ITEMS
statement showing percent owned of voting stock of each corporation.
C. Number of Muskegon Heights location(s) included in this return Number of location(s) everywhere CODE
D. Indicate the last fiscal or calendar year audited by the Federal Internal Revenue Service
AUDIT RESULTS
E. Was your federal tax liability changed either by a review by the Federal Government of the Filing of an amended Federal
Return? Yes No If yes, attach an explanation if an amended City Return was not filed.

Auditor
Approval

I declare that I have examined this return (including accompanying schedules and statements) and to the best of my knowledge and belief it is true, correct and complete. If prepared by
a person other than taxpayer, his declaration is based on all information of which he has any knowledge.

DATE SIGNATURE OF OFFICER TITLE

DATE SIGNATURE OF INDIVIDUAL OR PREPARER ADDRESS
MAILTO: City Income Tax Administrator, 2724 Peck Street, Muskegon Heights, Michigan 49444

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SCHEDULE D – BUSINESS ALLOCATION FORMULA LOCATED LOCATED IN
EVERYWHERE MUSKEGON HTS. PERCENTAGE
I II II÷I

1. Average net book value of real and tangible personal property $$
a. Gross annual rent paid for real property only, multiplied by 8
b. TOTAL(Add Lines 1 and 1a) %
2. Total wages, salaries, commissions and other compensation of all employees %
3. Gross receipts from sales made or services rendered %
4. Total percentages – add the three percentages computed for Lines 1b, 2 and 3 which you entered in the last column (you must
compute a percentage for each of lines 1b, 2 and 3) %
5. Average percentage (one-third of Line 4) - enter here and on Page 1, Line 10 %
NOTE: In determining the average percentage (Line 5), a factor shall be excluded from the computation only when such factor
does not exist anywhere insofar as the taxpayer's business operatio n is concerned and, in such cases, the sum of the percentages
shall be divided by the number of factors actually used.
In the case of a taxpayer authorized by the Income Tax Administrator to use one of the special formulas, attach explanation and use the
lines provided below:
a. Numerator c. Percentage (a ÷ b) here and on Page 1, Line 10
b.Denominator d. Date of Administrator's approval letter

SCHEDULE E
Schedule E is used to adjust the income reported on Page 1, Line 1 to give effect to the requirements of the Muskegon Heights Income Tax Ordinance. The
period of time used to compute items for Schedule E must be the same as the time period used to report income on Line 1. Schedule E entries are allowed
only to the extent directly related to net income as shown on Line 1 on Page 1.
PERIOD: From to

COLUMN 1 COLUMN 2
Add – Items Not Deductible Deduct – Items NotTaxable and Allowable Deductions
1. All expenses (including interest) incurred 5. Interest from U.S. obligations and from United States
in connection with derivation of income not government units $
subject to Muskegon Heights income tax $
6. Dividends – Received deduction $
2. Muskegon Heights income tax paid or accrued $
7. Dividend gross up of foreign taxes
3.Other (submit schedule)
8. Foreign tax deduction
9. Other (submit schedule)

4. TotalAdditions (enter on Page 1, Line 4) $
10. Total Deductions (enter on Page 1, Line 6) $

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        CITY OF MUSKEGON HEIGHTS INCOME TAX

                                              CORPORATION RETURN
        Instructions for Form MH-1120 for CORPORATIONS doing business in Muskegon Heights

FILING DATE                                                                      The portion of Line 2 that represents net capital loss carryover is to be
                                                                                 entered on Line 12 in accordance with the instructions for that Line. The
Calendar year taxpayers must file byApril 30.                                    amount of gain or loss occurring after January 1, 1990 is to be determined by
Fiscal year taxpayers must file within 4 months after the end of their fiscal    either (1) computing the difference between the January 1, 1990 fair market
year.                                                                            value (December 31, 1989 closing price for traded securities) or the cost if
                                                                                 the date acquired was subsequent to January 1, 1990, and the proceeds from
REMITTANCE                                                                       the dale or exchange, or (2) by using the gain or loss for the entire holding
The tax due, if one dollar ($1.00) or more, must be paid when filing the         period, as computed for Federal income tax purposes, and computing the
return. Makeremittance payable to: CITYTREASURER.                                taxable portion of such gain or loss on the ratio that the number of months
                                                                                 held in the period subsequent to January 1, 1990 is to the total time the
MAILING ADDRESS                                                                  property washeld.
Mail your return and remittance to:
CITYINCOMETAX DIVISION                                                           Do not include capital gains and losses on the sale or exchange of United
2724 PECKSTREET                                                                  States obligations since such gains and losses are excluded from taxation
MUSKEGONHEIGHTS, MI 49444                                                        under the Muskegon Heights Ordinance.
EFFECTIVE DATE OF TAX                                                            Line 12.  Enter on this line the net capital loss carryover and net operating
                                                                                 loss carryover applicable to Muskegon Heights.
The City of Muskegon Heights income tax became effective January 1,
1990. Corporations are required to pay the tax each year on that part of their   Net capital losses sustained by a corporation for periods subsequent to
net income attributable to business activity conducted in Muskegon               January 1, 1990, may be carried forward in the same manner as under the
Heights, commencing with their first year, calendar or fiscal, ending after      Federal Internal Revenue Code. No deduction will be allowed for capital
January 1,1990.                                                                  losses sustained prior to January 1, 1990. Net operating losses carried
                                                                                 forward are to be shown on Line 12 of this return. No deduction will be
CORPORATIONS REQUIREDTO FILE                                                     allowed for net operating losses sustained prior to January 1, 1990. There
Every corporation doing business in the city, whether or not it has an office    is no provision for carryback losses.
or place of business in the city, and having income taxable under the ordi-      Carryover losses are to be allocated to Muskegon Heights at the percentage
nance, is required to file an annual City of Muskegon Heights Corporation        of business conducted in Muskegon Heights in the year in which the loss
IncomeTax Return, Form MH-1120.                                                  was sustained. If all business was not conducted in Muskegon Heights in the
Corporations cannot elect tofile and be taxed as partnerships.                   year in which the loss was sustained, use the business allocation percentage
                                                                                 formula to arrive at the deductible portion of the loss.
The ordinance specifically exempts from taxation state and national banks,
trust companies, insurance companies, building and loan and savings and          Attach a schedule showing your computation for the amount reported on
loan associations, credit unions, safety and collateral deposit companies,       this line.
and any other association, joint stock company or corporation at least 90%       SCHEDULE D – INSTRUCTIONS
of whose assets consist of intangible personal property and at least 90% of
whose gross income consists of dividends or interest or other charges            The business allocation percentage formula must be used by corporations
resulting from the use ofmoney or credit.                                        with business activity both within and without the City of Muskegon
                                                                                 Heights who have not been approved to use the separate accounting method.
FILING DATE
                                                                                 Line 1. Enter in Column I the average net book value of all real and tangible
Taxpayers on a calendar year are required to file byApril 30, those on a fiscal  personal property owned by the business, regardless of location; and in
year must file by the last day of the fourth month following the end of the      Column II show the net book value of the real and tangible personal property
fiscal year. Returns shall be for the same calendar year, fiscal year, or other  owned and located or used in the City of Muskegon Heights. The average
accountingperiod asthetaxpayer uses for Federal income tax purposes.             net book value of real and tangible personal property may be determined by
EXTENSIONS                                                                       adding the net book values at the beginning of the year and the net book
                                                                                 values at the end of the year and dividingthe sum thus obtainedbytwo.
Upon filing the form APPLICATION FOR EXTENSION OF TIME TO
FILE MUSKEGON HEIGHTS INCOMETAX RETURN (obtainable from                          Line 1a. Enter in Column I the gross annual rent multiplied by 8 for all
our office on request) on or before the date for filing a return, the IncomeTax  rented real property regardless of location. In Column II show the gross
Administrator may extend the time for filing up to six months. When an           annual rent multiplied by 8 for rented real property located in the City of
extension is requested,thetentative tax estimated to be due must be paid.        Muskegon Heights. Gross annual rent refers to real property only, rented or
                                                                                 leased during the taxable period, and should include the actual sums of
When the application form is filed, it may be assumed that the extension is      money or other consideration payable, directly or indirectly, by the taxpayer
automatically granted unless otherwise notified. When the extended               for the use or possession of such property.
Muskegon Heights Income Tax Return is filed, a copy of the application for
extension must accompany it. If the return is filed after the extended due       Line 2. Enter in Column I the total compensation paid to all employees
date,penalty and interest for late filingwill apply from the original due date.  during the year and in Column II show the amount of compensation paid to
                                                                                 employees for work or services performed within the City of Muskegon
INSTRUCTIONS FOR PAGE 1                                                          Heights during the year.
Line 8. Only the amount of the gain or loss occurring from January 1, 1990       Line 3. Enter in Column I the total gross revenue from all sales or services
to date of disposition shall be recognized for purposes of the Muskegon          rendered during the year and in Column II show the amount of revenue
Heights income tax.Adjustment for this is to be made here by removing the        derived from sales made or services rendered in the City of Muskegon
gain or loss on Line 2 and inserting, on Line 8, only the portion of the gain or Heights during the year. If there is no regularly maintained sales force
loss applicable to the holding period subsequent to January 1, 1990 to the       outside of the city, this allocation factor must be 100% for businesses with
date of disposition.Any net capital loss carryover included in Line 2 of Page    no other business activity outside the city.
1 shouldbe excludedbefore entryon Line 8.

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SCHEDULE E – INSTRUCTIONS COMPUTATION AND PAYMENT OFTAX
Line 5. The City of Muskegon Heights Income Tax Ordinance provides for After computing your Muskegon Heights Income Tax and deducting your
the specific exclusion from the tax of interest from obligations of the United credits, if there is any tax due it must be paid when filing this return. Make
States,the states or subordinate units ofgovernment of the state. check or money order payable to CITY TREASURER and mail with this
return to CITYINCOMETAXADMINISTRATOR, 2724 PECK STREET,
Line 6. If you reported dividend income, enter on this line the amount of the MUSKEGON HEIGHTS, MICHIGAN 49444. If your payments and
dividend received deduction allowed by the Federal Internal Revenue Code credits exceed the tax, show the amount of such overpayment on Line 17
fordividends received. and check the proper box on Line 19 to indicate whether you wish the
Lines 7 and 8. Taxpayers may deduct income, war profits and excess profits overpayment as a refund or as a credit on your estimated tax. Refunds will
taxes imposed by foreign countries or possessions of the United States, be made as quickly as possible, but please allow 90 days before making any
allocable to income included in taxable net income, any part of which would inquiry. Refunds of less than one dollar ($1.00) will not be made.Tax due of
be allowable as a deduction in determining federal taxable income under the less than one dollar ($1.00) need not be paid.
applicable provisions of the Federal Internal Revenue Code. DECLARATION AND PAYMENT OF ESTIMATED TAX
If a foreign tax credit, rather than a foreign tax deduction was taken on your
federal return, enter on Line 8 the portion of the foreign tax credit which was 1.WHO MUST FILE: Every corporation subject to the tax on all or part of
grossed up and included in your Muskegon Heights return as dividends its net profits must file a Declaration of Estimated Income Tax (Form 1040-
received and enter on Line 9 the "foreign taxes paid or accrued" portion of ES). A Declaration is not required from corporations if the estimated tax on
the foreign tax credit claimed on your federal return, not in excess of the Line 3 isTWO HUNDRED FIFTYDOLLARS ($250.00) or less.
federal limitations thereon. The balance of your foreign tax credit is not 2. WHEN AND WHERE TO FILE AND PAY:
deductible.
A. Declaration for Calendar Year. The Declaration for a calendar
SeparateAccounting – The Income Tax Ordinance, Section 18-19 reads as year must be filed on or before April 30th of that year. The esti-
follows: mated tax is payable in equal installments on or before April 30th,
"Sec. 18-19. The taxpayer may petition for and the administrator June 30th, September 30th and January 31st.
may grant approval of, or the administrator may require the B. Declaration for Fiscal Year. The Declaration for a year, or
separate accounting method. If such method is petitioned for, the period differing from the calendar year must be filed within four
administrator may require a statement, explaining the manner in (4) months after the beginning of each fiscal year or period. For
which the apportionment will be made, in sufficient detail to example, if your fiscal year begins onApril 1st, your Declaration
determine whether the net profits attributable to the city will be will be due on July 31st. Remaining installments will then be due
apportioned with reasonable accuracy." on the last day of the 6th, 9th and 13th months after the beginning
Generally, a corporation that is unitary in nature, i.e. has central manage- of the fiscal year.
ment, purchasing, warehousing, advertising, etc. cannot use separate C. Filing and Payment. The Declaration should be filed with the City
accounting. Taxpayers allocating on any basis other than separate account- Income Tax Administrator, 2724 Peck Street, Muskegon Heights,
ing shall include all interest, dividends, and other non-operating income to Michigan 49444. The first installment payment must accompany
arrive at the total income subject to the allocation percentage. Taxpayers the Declaration. However, the estimated tax may be paid in full
using separate accounting shall include in income subject to tax a propor- with the Declaration.
tionate share of dividends, interest, and other non-operating income of the
total corporation, using a direct allocation if the income is received by the
divisions subject to the Muskegon Heights tax, or apportioning it on the
same basis as general administrative and overhead costs are apportioned to
Muskegon Heightsactivity .

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