February 28, 2012, Introduced by Rep. Gilbert and referred to the Committee on Tax Policy.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 4r (MCL 205.54r), as amended by 2004 PA 173.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4r. (1) All of the following are exempt from the tax
under this act:
(a) The product of the out-of-state usage percentage and the
gross proceeds otherwise taxable under this act from the sale of a
qualified truck or a trailer designed to be drawn behind a
qualified truck, purchased after December 31, 1996 and before May
1, 1999 by an interstate motor carrier and used in interstate
(b) A sale of rolling stock purchased by an interstate motor
carrier or for rental or lease to an interstate motor carrier and
used in interstate commerce.
(2) As used in this section:
(a) "Interstate motor carrier" means a person engaged in the
business of carrying persons or property, other than themselves,
their employees, or their own property, for hire across state
lines, whose fleet mileage was driven at least 10% outside of this
state in the immediately preceding tax year.
(b) "Out-of-state usage percentage" is a fraction, the
numerator of which is the number of miles driven outside of this
state in the immediately preceding tax year by qualified trucks
used by the interstate motor carrier and the denominator of which
is the total miles driven in the immediately preceding tax year by
qualified trucks used by the interstate motor carrier. Miles driven
by qualified trucks used solely in intrastate commerce shall not be
included in calculating the out-of-state usage percentage.
(c) "Qualified truck" means a commercial motor vehicle power
unit that has 2 axles and a gross vehicle weight rating in excess
of 10,000 pounds or a commercial motor vehicle power unit that has
3 or more axles.
(d) "Rolling stock" means a qualified truck, a trailer
designed to be drawn behind a qualified truck, and parts or other
tangible personal property affixed to and directly used in the
operation of either a qualified truck or a trailer designed to be
drawn behind a qualified truck.
Enacting section 1. This amendatory act is curative and
intended to clarify the original intent of 1999 PA 116.