HOUSE BILL No. 6182

 

May 27, 2008, Introduced by Reps. Farrah and Calley and referred to the Committee on Tax Policy.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

by amending section 413 (MCL 208.1413), as amended by 2007 PA 145.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 413. (1) Subject to subsection (2), a taxpayer may claim

 

a credit against the tax imposed by this act equal to the

 

following:

 

     (a) For property taxes levied after December 31, 2007, 35% of

 

the amount paid for property taxes on eligible personal property in

 

the tax year.

 

     (b) Twenty-three percent of the amount paid for property taxes

 

levied on eligible telephone personal property in the 2008 tax year

 

and 13.5% of the amount paid for property taxes levied on eligible

 


telephone personal property in subsequent tax years.

 

     (c) For property taxes levied after December 31, 2007, 10% 25%

 

of the amount paid for property taxes on eligible natural gas

 

pipeline property in the tax year.

 

     (2) To qualify for the credit under subsection (1), the

 

taxpayer shall file, if applicable, within the time prescribed each

 

of the following:

 

     (a) The statement of assessable personal property prepared

 

pursuant to section 19 of the general property tax act, 1893 PA

 

206, MCL 211.19, identifying the eligible personal property or

 

eligible natural gas pipeline property, or both, for which the

 

credit under subsection (1) is claimed.

 

     (b) The annual report filed under section 6 of 1905 PA 282,

 

MCL 207.6, identifying the eligible telephone personal property for

 

which the credit under subsection (1) is claimed.

 

     (c) The assessment or bill issued to and paid by the taxpayer

 

for the eligible personal property, eligible natural gas pipeline

 

property, or eligible telephone property for which the credit under

 

subsection (1) is claimed.

 

     (3) If the amount of the credit allowed under this section

 

exceeds the tax liability of the taxpayer for the tax year, that

 

excess shall be refunded.

 

     (4) As used in this section:

 

     (a) "Eligible natural gas pipeline property" means natural gas

 

pipelines that are classified as utility personal property under

 

section 34c of the general property tax act, 1893 PA 206, MCL

 

211.34c, and are subject to regulation under the natural gas act,

 


15 USC 717 to 717z.

 

     (b) "Eligible personal property" means personal property that

 

is classified as industrial personal property under section 34c of

 

the general property tax act, 1893 PA 206, MCL 211.34c, or in the

 

case of personal property that is subject to 1974 PA 198, MCL

 

207.551 to 207.572, is situated on land classified as industrial

 

real property under section 34c of the general property tax act,

 

1893 PA 206, MCL 211.34c.

 

     (c) "Eligible telephone personal property" means personal

 

property of a telephone company subject to the tax levied under

 

1905 PA 282, MCL 207.1 to 207.21.

 

     (d) "Property taxes" means any of the following:

 

     (i) Taxes collected under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155.

 

     (ii) Taxes levied under 1974 PA 198, MCL 207.551 to 207.572.

 

     (iii) Taxes levied under the obsolete property rehabilitation

 

act, 2000 PA 146, MCL 125.2781 to 125.2797.

 

     (iv) Taxes levied under 1905 PA 282, MCL 207.1 to 207.21.