The Tax And Business Climate In Michigan, United States

Every month, we focus one blog on a “state of the month” where we share not only the state tax ramifications (including economic nexus rules for sales tax, among others), but also some information about the geography, business climate, various tax insights, and of course, some fun facts.

This month takes us to the Wolverine State of Michigan. The origins of this name are obscure, but may be derived from a busy trade in Wolverine furs during the 18th Century.

Its largest city, Detroit, is famed as the seat of the U.S. auto industry, which inspired Diego Riviera’s murals at the Detroit institute of Arts. Also in Detroit is Hitsville U.S.A., the original headquarters of the Motown Record Company. Michigan is home to many great musicians including The Supremes, The Temptations, Stevie Wonder, Smokey Robinson, Bob Seger, Kid Rock and Alice Cooper.

Michigan is the only state to consist of two peninsulas. The Lower Peninsula, to which the name Michigan was originally applied, is often noted to be shaped like a mitten. The Upper Peninsula (often referred to as “the U.P.”) is separated from the Lower Peninsula by the Straits of Mackinac, a five-mile channel that joins Lake Huron to Lake Michigan.

The heavily forested Upper Peninsula is relatively mountainous in the west. The Porcupine Mountains, which are part of one of the oldest mountain chains in the world, rise to an altitude of almost 2,000 feet above sea level and form the watershed between the streams flowing into Lake Superior and Lake Michigan.

A wide variety of commodity crops, fruits, and vegetables are grown in Michigan, making it second only to California among U.S. states in the diversity of its agriculture. Michigan is a leading grower of fruit in the U.S., including blueberries, apples, tart cherries, grapes, and peaches.

Business Climate 

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