October 13, 2011, Introduced by Rep. Stamas and referred to the Committee on Government Operations.
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% 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 the following:
(i) Except as otherwise provided in subparagraph (ii), 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.
(ii) Eligible personal property does not include gas, steam, or
coal-fired turbines used in the generation of electricity.
(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.
Enacting section 1. This amendatory act is intended to clarify
and express the original intent of the legislature concerning the
eligibility of gas, steam, or coal-fired turbines used in the
generation of electricity for the credit provided under section 413
of the Michigan business tax act, 2007 PA 36, MCL 208.1413. This
amendatory act is retroactive and is effective January 1, 2008 and
applies to all business activity occurring after December 31, 2007.