HOUSE BILL No. 4982

 

June 22, 2005, Introduced by Rep. Baxter and referred to the Committee on Tax Policy.

 

     A bill to amend 1975 PA 228, entitled

 

"Single business tax act,"

 

(MCL 208.1 to 208.145) by adding section 35d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 35d. (1) For tax years that begin on or after January 1,

 

2006, a taxpayer may claim a credit equal to 10% of the property

 

taxes paid in the tax year by the taxpayer on tangible personal

 

property used by the taxpayer for business activities.

 

     (2) To qualify for the credit under this section for an item

 

of tangible personal property, a taxpayer that is otherwise

 

eligible to claim the credit allowed under this section shall file

 

within the time required the statement of personal property

 

described in section 19 of the general property tax act, 1893 PA

 

206, MCL 211.19, for that item of tangible personal property used

 


for business activity for the location at which the tangible

 

personal property that is the basis of the credit allowed under

 

this section is located.

 

     (3) If the credit allowed under this section exceeds the tax

 

liability of the taxpayer for the tax year, the excess shall be

 

refunded to the taxpayer.

 

     (4) An affiliated group as defined in this act, a controlled

 

group of corporations as defined in section 1563 of the internal

 

revenue code and further described in 26 CFR 1.414(b)-1 and

 

1.414(c)-1 to 1.414(c)-5, or an entity under common control as

 

defined by the internal revenue code shall not claim the credit

 

allowed by this section unless the business activities of the

 

entities are consolidated. For purposes of this subsection,

 

business activities include all activities within and outside of

 

this state.

 

     (5) As used in this section, "property taxes" means taxes paid

 

under the general property tax act, 1893 PA 206, MCL 211.1 to

 

211.157.