November 30, 2011, Introduced by Senator HUNE and referred to the Committee on Finance.
A bill to amend 1905 PA 282, entitled
"An act to provide for the assessment of the property, by
whomsoever owned, operated or conducted, of railroad companies,
union station and depot companies, telegraph companies, telephone
companies, sleeping car companies, express companies, car loaning
companies, stock car companies, refrigerator car companies, and
fast freight companies, and all other companies owning, leasing,
running or operating any freight, stock, refrigerator, or any other
cars, not being exclusively the property of any railroad company
paying taxes upon its rolling stock under the provisions of this
act, over or upon the line or lines of any railroad or railroads in
this state, and for the levy of taxes thereon by a state board of
assessors, and for the collection of such taxes, and to repeal all
acts or parts of acts contravening any of the provisions of this
act,"
by amending the title and sections 3, 4, 5, 6, 7, 9, 10, 11, 12,
13, 13a, 13b, 14, 16, and 19 (MCL 207.3, 207.4, 207.5, 207.6,
207.7, 207.9, 207.10, 207.11, 207.12, 207.13, 207.13a, 207.13b,
207.14, 207.16, and 207.19), sections 4, 5, and 9 as amended by
2002 PA 610, sections 10, 11, 14, and 19 as amended by 1995 PA 257,
sections 12 and 13 as amended by 2001 PA 35, section 13a as added
by 2000 PA 341, and section 13b as added by 2002 PA 50; and to
repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act to provide for the assessment of the property , by
whomsoever
owned, operated or conducted, of
railroad companies,
union station and depot companies, telegraph companies, telephone
companies, sleeping car companies, express companies, car loaning
companies,
stock car companies, refrigerator car companies, and
fast freight companies, and all other companies owning, leasing,
running, or operating any freight, stock, refrigerator, or any
other
cars , not being
exclusively the exclusive property of any
railroad
company paying taxes upon its rolling stock under the
provisions
of this act, over or upon the line
or lines of any
railroad
or railroads in this state, and for the levy of taxes
thereon
by a state board of assessors a
tax on that property, and
for
the collection of such taxes that
tax, and to repeal all
acts
or and parts of acts. contravening any of the
provisions of
this
act.
Sec. 3. (1)
Said board The state tax commission shall have
access
to all books, papers, documents, statements, and accounts ,
on file or of record in any of the departments of this state,
subject to the rules and regulations of the respective departments
relative
to regarding the care of public records. It shall have
like
The state tax commission
shall also have access to all books,
papers,
documents, statements, and accounts , on file or of record
in
counties, townships, and municipalities. It
(2) The state tax commission shall have the right to subpoena
witnesses,
upon a subpoena signed by the chairman chairperson of
said
board and the state tax
commission, attested by the secretary
thereof
of the state tax commission, and delivered to such those
witnesses. ,
which subpoenas Subpoenas may be served by any person
authorized to serve subpoenas from courts of record in this state.
,
and the The attendance of witnesses may be compelled by
attachment, to be issued by any circuit court in this state, upon
proper
showing that such the witness has been properly subpoenaed ,
and
has refused to obey such that
subpoena. The person appearing in
response
to such a subpoena shall receive like the compensation
as
is
allowed by the statutes of this
state to witnesses in the
circuit
court, to be allowed by the board of state auditors upon
the
presentation of a copy of such the
subpoena, with the number of
days'
service and mileage endorsed thereon on the subpoena and
approved
by a member of said board of assessors, the state tax
commission or the secretary thereof of the state tax commission.
The
person serving such a subpoena shall receive the same
compensation now allowed to sheriffs or other officers for serving
subpoenas.
Said board shall have power to
(3) The state tax commission may examine witnesses under oath
,
said oath to be administered by any
member of the board, state
tax
commission or by the secretary thereof
of the state tax
commission. It shall have the right to
(4) The state tax commission may inspect and examine the
books, papers, or accounts of any corporation, firm, or individual
owning
property to be assessed by said board, and if such under
this
act. If a corporation, firm, or
individual refuse refuses to
permit
said an inspection and examination , or neglect or fail
neglects
or fails to appear before said board
the state tax
commission in response to its subpoena, said that corporation,
firm, or
individual shall, for each such refusal, neglect, or
failure,
forfeit the sum of 500 dollars $500.00 to the this state.
,
the sum so The amount forfeited to may be recovered in a
proper
an action brought in the name of the people of the state of
Michigan, in any court of competent jurisdiction.
Sec.
4. (1) The state board of assessors tax commission shall
annually determine the true cash value and taxable value of
property having a situs in this state of all of the following:
(a) Railroad companies.
(b) Union station and depot companies.
(c) Telegraph companies.
(d) Telephone companies.
(e) Sleeping car companies.
(f) Express companies.
(g) Car loaning companies.
(h) Stock car companies.
(i) Refrigerator car companies.
(j) Fast freight line companies.
(k) All other companies owning, leasing, running, or operating
any freight, stock, refrigerator, or any other cars not the
exclusive property of a railroad company paying taxes on its
rolling stock under this act, over or on the line or lines of any
railroad in this state.
(2) For tax years that begin after December 31, 2005, the
state
board of assessors tax
commission shall annually determine
the true cash value and taxable value of property having a situs in
this state of telegraph companies and telephone companies in the
same manners as property assessed under the general property tax
act,
1893 PA 206, MCL 211.1 to 211.157 211.155.
(3) The property of a telegraph and telephone company with
gross receipts within this state for a year ending December 31 of
not more than $1,000.00 is exempt from taxation under this act.
(4) All telegraph and telephone companies doing business in
this state shall make the report required under section 6.
Sec. 5. (1) As used in this act, "property" means 1 of the
following:
(a) Except as otherwise provided in subdivision (b), all
property, real or personal, belonging to the persons, corporations,
companies, copartnerships, and associations subject to taxation
under this act, including rights-of-way, road beds, stations, cars,
rolling stock, tracks, wagons, horses, office furniture, telegraph
and telephone poles, wires, conduits, switchboards, all other
property used in carrying on their business and owned by them
respectively, all other real and personal property, and all
franchises. Franchises shall not be directly assessed, but shall be
considered in determining the value of the other property. Property
does not include, apply to, or subject to taxation property or real
property owned and capable of being conveyed by the persons,
corporations, companies, copartnerships, and associations subject
to taxation under this act that is not actually occupied in the
exercise of their franchises, or in use in the operation and
conduct of their business.
(b) For telegraph companies and telephone companies only, for
tax years that begin after December 31, 2005, only property that
would be subject to the collection of taxes under the general
property
tax act, 1893 PA 206, MCL 211.1 to 211.157 211.155,
if
that property were not subject to taxation under this act.
(2) Real property exempt from the tax levied under this act
under subsection (1) is subject to taxation in the same manner, for
the same purposes, to the same extent, and subject to the same
conditions and limitations as other real property in the townships
or municipalities in which that property is located.
(3) As used in this act, the terms "company", "corporation",
"copartnership", "association", and "person" apply to and shall be
construed as referring to any of the following:
(a) A railroad company, union station and depot company,
telegraph company, telephone company, sleeping car company, express
company, car loaning company, stock car company, refrigerator or
fast freight line company, or any other companies owning, leasing,
running, or operating any freight cars, stock cars, refrigerator
cars, or any other cars, not the exclusive property of a railroad
company paying taxes upon its rolling stock under this act, over or
upon the line or lines of any railroad or railroads in this state.
(b) A firm, joint stock association, copartnership,
corporation, or other association or person engaged in carrying on
any business, the tangible property of which is subject to taxation
under this act.
(4) As used in this act, "property having a situs in this
state," includes all of the following:
(a) Except as otherwise provided in subdivision (b), the
property, real and personal, of the persons, corporations,
companies, copartnerships, and associations subject to taxation
under this act, owned, used, and occupied by them within this
state, and also the proportion of their rolling stock, cars, and
other property used partly within and partly outside of this state
as provided in this act.
(b) For telegraph companies and telephone companies only, for
tax years that begin after December 31, 2005, only the tangible
property, real and personal, owned, used, and occupied by them
within this state.
Sec.
6. The several corporations, persons, copartnerships,
companies, and associations whose property is subject to assessment
and
taxation under the provisions of this act , and whose annual
gross
receipts exceed $1,000,000.00 shall annually between the
first
day of January 1 and the
thirty-first day of March 31 in each
year,
and the several corporations, persons, copartnerships,
companies, and associations whose property is subject to assessment
and
taxation under the provisions of this act , and whose annual
gross
receipts do not exceed $1,000,000.00
, shall annually between
the
first day of January 1 and the
fifteenth day of March 15 in
each year, under oath of the president, secretary, superintendent,
or
chief officer of such that
corporation, company, or
association,
or
of the person or persons owning such that property, make and
file
with the state board of assessors tax commission an annual
report,
in such a form as said board may provide, upon blanks to be
furnished
by said board provided by the
state tax commission,
setting
forth specifically upon blanks so furnished by the board
the
information prescribed by said board the state tax commission
to
enable them the state tax
commission to make the assessment
required
in under this act.
Sec. 7. (1) Every joint stock association, company,
copartnership, or
association incorporated or acting under the laws
of
this or any other state, or of any foreign nation, and conveying
to,
from, through, in, or across this state , or any part thereof,
passengers
or travelers , in
palace cars, drawing room cars,
sleeping
cars, or tourist cars , under any contract, express or
implied, with
any railroad company , or the
managers, lessees,
agents, or
receivers thereof , of any
railroad company shall be
deemed
and held to be a sleeping car company for the purposes of
this
act. ; and every such
(2)
A sleeping car company doing business
in this state ,
shall
annually between the first day of January 1 and the thirty-
first
day of March 31 ,
make out and deliver to the state board
of
assessors
, tax commission a statement, verified by the under
oath
of
by the officer or agent of such that sleeping car company making
such
that statement, with reference to the thirty-first day
of
December
next immediately preceding
December 31, setting forth the
information
prescribed by the board to state
tax commission to
enable
them the state tax
commission to make the assessment
required
in under this act.
Sec. 9. (1) Not later than May 15 in each year, the state
board
of assessors tax commission shall prepare an assessment roll
upon which they shall set forth the true cash value and taxable
value on the immediately preceding December 31 of all the property
of the companies subject to taxation under this act. A
determination of true cash value and taxable value is not final
until reviewed as provided in this act. For the purpose of arriving
at the true cash value and taxable value of the property on the
assessment
roll, the state board of assessors tax commission may
personally inspect the property assessed, may consider the reports
filed under this act or reports and returns filed in the office of
any officer of this state or in the office of any other
governmental agency, and may consider any other evidence or
information
obtained or possessed by the state board of assessors
tax commission.
(2) In determining the true cash value and taxable value of
the property of a railroad, union station, and depot company that
owns, leases, operates, or uses lines partly within or partly
outside
of this state, the state board of assessors tax commission
shall consider the proportion of the number of miles of all track
controlled or used by that company within this state to the entire
mileage of all track controlled or used by that company both within
and
outside of this state. The state board of assessors tax
commission shall also consider any other uniform factors that
reflect a fair allocation of value to this state.
(3) For tax years that begin before January 1, 2006, in
determining the true cash value and taxable value of the property
of a telegraph company or telephone company that owns, leases,
operates, or uses lines partly within and partly outside of this
state,
the state board of assessors tax
commission shall only
consider the proportion of the number of miles of telegraph or
telephone lines controlled or used by that company within this
state to the entire mileage of telegraph or telephone lines
controlled or used by that company both within and outside of this
state.
The state board of assessors tax
commission shall also
consider any other uniform factors that reflect a fair allocation
of value to this state.
(4) In determining the true cash value and taxable value of
the
property of an express company, the state board of assessors
tax commission shall determine the actual value of the entire
amount of the capital stock and bonded indebtedness of that express
company.
From that amount, the state board of assessors tax
commission shall determine and deduct the actual value of all real
property
owned by that express company , and
the actual value of
all personal property owned by that express company that is not
used in the express business of that express company. The state
board
of assessors tax commission shall then divide the remaining
amount by the total number of miles, as determined by the state
board
of assessors tax commission, of railroad, stage, water, and
other routes over which the company did business to obtain the
value
per mile. The state board of assessors tax commission shall
then multiply the value per mile by the total number of miles of
the
routes within this state, as determined by the state board of
assessors
tax commission. The state board of assessors tax
commission shall then add to the product of that calculation the
value of all real estate owned by that express company in this
state,
as determined by the state board of assessors tax
commission. The sum of this calculation is the actual value of the
property of that express company subject to assessment and taxation
in this state.
(5)
If the state board of assessors tax
commission determines
that the ocean routes of a company are so different in character
from its other routes that the mileage basis of apportionment of
the value of the entire property to be apportioned in this state
would be unfair if the full mileage of the ocean routes were
included,
the state board of assessors tax
commission may make an
allowance for that company's ocean routes to bring those ocean
routes to parity with that company's other routes. In making this
determination,
the state board of assessors tax
commission shall
consider the relative mileage values and earning capacities of the
ocean routes and the other routes and shall require special reports
of the character, mileage, earnings, and value of the ocean routes.
The
state board of assessors tax
commission may exclude from its
determination of aggregate mileage any ocean routes on which the
express company fails to furnish the requisite reports, but no
further penalty shall be imposed for the failure to report the
mileage of ocean routes.
(6) If a company claims in writing that the mileage basis of
apportionment of the value of the entire property to be attributed
to
this state is unfair, the state board of assessors tax
commission shall make the apportionment that in its judgment is
fair.
In making that apportionment, the state board of assessors
tax commission shall consider the mileage within and outside of
this state, making any necessary allowance for ocean mileage as
provided in this section.
(7) In determining the true cash value and taxable value of
the property in this state of car loaning, stock car, refrigerator,
fast freight lines, and other car companies, and other companies
owning, leasing, running, or operating cars subject to taxation
under
this act, the state board of assessors tax commission shall
consider the proportion of the aggregate car mileage made or run by
the entire number of cars owned or operated by a company to the car
mileage made or run by the entire number of cars owned or operated
by that company within this state.
Sec. 10. On the assessment roll, after the name of each of the
companies
assessed, the state board of assessors tax commission
shall place a general description of the property of each company,
which includes all of the property of each company liable to
taxation under this act. In the case of railroad, union station,
and depot companies, the general description may be "Real estate,
rolling stock, right-of-way and appurtenances, and all other
property used in carrying on the corporate business and subject to
taxation
by a the state board of assessors tax commission.". In the
case of telegraph and telephone companies, the general description
may be "Real estate, exchanges, switchboards, conduits, telegraph
and telephone poles, and lines, and other appurtenances, and all
other
property used in carrying on the business of said that
company,
and subject to taxation by a the
state board of assessors
tax commission.". In the case of car loaning, stock car,
refrigerator and fast freight line, and other car companies, and
other companies, owning, leasing, running, or operating any cars
subject to taxation under this act, the general description may be
"Cars
subject to taxation by a the
state board of assessors tax
commission.". In the case of express companies and sleeping car
companies, the general description may be "Property subject to
taxation
by a the state board of assessors tax commission.". In a
column opposite the name of each company assessed shall be extended
the true cash value and taxable value of the property assessed.
Sec. 11. On the third Monday in May in each year, the state
board
of assessors tax commission shall meet at its office in the
city of Lansing and continue in session from day to day for as long
as necessary, but not later than June 15, to review the assessment
roll. Any interested company or person may appear during that
period and be heard as to the true cash value or taxable value of
the
property of any company assessed. The state board of assessors
tax commission may, on application or on its own motion, correct
the true cash value or taxable value of the property assessed. To
determine the true cash value or taxable value of the property
assessed,
the state board of assessors tax
commission may subpoena
witnesses as provided in section 3 and may hold any hearing it
considers necessary. If the property of a company subject to
taxation under this act has been omitted from the assessment roll,
the
state board of assessors tax
commission shall place that
property on the assessment roll and assess the property as required
in sections 9 and 10. An assessment under this section shall not be
made if there are less than 5 days before the completion of the
review.
After the state board of assessors tax commission completes
the review of the assessment roll, it shall place opposite each
description of property in the assessment roll, in a column
provided for that purpose, the true cash value and taxable value of
that property as determined by it. The taxable value determined by
the
state board of assessors tax
commission is the final valuation
on which the tax on that property shall be levied and spread. After
the
state board of assessors tax
commission completes its review of
the
assessment roll, a majority of the state board of assessors tax
commission shall certify that the assessment roll has been acted
upon and reviewed in accordance with this act, shall state all of
the alterations, changes, corrections, and additions made to the
true cash value or taxable value of the property on the assessment
roll, shall state all the alterations, changes, and corrections
made in the true cash value or taxable value of the property of the
state other than that included in this act on which ad valorem
taxes are assessed for state, county, township, school, and
municipal purposes for the current year, and shall also state all
of the alterations, changes, and corrections made in computing the
average rate as provided in this act.
Sec. 12. The director of the tax or equalization department in
each county in this state, as soon as possible after the
equalization
of by the board of commissioners of the county of the
assessment rolls of the municipalities in that county, and not
later than December 1 in each year, shall make a report, duly
certified,
to the state board of assessors tax
commission, on a
form
to be provided by the state board of assessors tax commission,
of the amount of ad valorem taxes to be raised in the
municipalities in that county for state, county, municipal,
township, school, and other purposes, including a statement of the
aggregate valuation of the property in each of the municipalities
in that county, as taken from the assessment rolls of the
municipalities
for the year in which the equalization is made , and
,
for taxes levied before January 1, 1995, the state equalized
valuation
of each municipality and, for taxes levied after December
31,
1994, the taxable value of each
municipality. The supervisor or
other assessing officer of each township, city, and village in this
state shall make, within the time provided in this section, a
report
to the state board of assessors tax
commission, on a form to
be
provided by the state board of
assessors tax commission, of all
ad valorem taxes raised in his or her assessing district for the
current
year , and ,
for taxes levied before January 1, 1995, of
the
state equalized valuation of real and personal property upon
which
the taxes are levied and, for taxes levied after December 31,
1994,
of the taxable value of real and
personal property upon which
the taxes are levied. If any director of a county tax or
equalization department or any supervisor or assessing officer
neglects or fails to make the report required by this section
within
the time provided in this section, the state board of
assessors
tax commission shall inspect and examine or cause an
inspection and examination of the records of the board of
commissioners or of the proper township, city, or village officers,
to procure the information required to arrive at the average rate
of taxation in this state. Any director of a county tax or
equalization department, supervisor, or assessing officer who fails
to make the report required by this section is subject to a penalty
of $100.00, to be recovered in an action in the name of the people
of this state in any court of competent jurisdiction.
Sec.
13. (1) The state board of assessors tax commission, from
the information contained in the reports provided for in section
12, shall determine for the year in which the reports are required
to be made the average rate of taxation levied on other commercial,
industrial, and utility property on which ad valorem taxes are
assessed for state, county, township, school, and municipal
purposes, and enter the determination in its records, together with
the
method by which the average rate of taxation was determined. In
determining
the average rate of taxation for taxes levied under
this
act before January 1, 1996, the state board of assessors shall
divide
the state equalized value as set by the state board of
equalization
for the previous year into the total ad valorem taxes
as
reported by each director of a county tax or equalization
department
as provided in section 12. In
determining the average
rate
of taxation, for taxes levied under this act after December
31,
1995, the state board of
assessors tax commission shall divide
the state taxable value for the previous year into the total ad
valorem taxes as reported by each director of a county tax or
equalization
department as provided in section 12. In determining
the
average rate of taxation for 1994, ad valorem taxes levied for
the
year in which the reports are required by a local school
district
for school operating purposes as defined in section 1211
of
the revised school code, 1976 PA 451, MCL 380.1211, shall be
excluded
from the calculation required by this section and the
state
board of assessors shall add to the tax rate calculated under
this
section after the exclusion required by this sentence, the
number
of mills levied under the state education tax act, 1993 PA
331,
MCL 211.901 to 211.906, plus the statewide average number of
mills
levied in 1994 by local school districts for school operating
purposes
under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
If the state board of assessors is unable to determine
the
average rate of taxation for 1994 before June 1, 1994, the
state
board of assessors shall determine a preliminary average rate
of
taxation that shall be used to complete the 1994 tax roll under
section
14. However, before June 1, 1995, the state board of
assessors
shall determine and certify the average rate of taxation
for
1994 and prepare a supplemental 1994 tax roll using the 1994
assessed
valuations for the purpose of levying a supplemental tax
or
making a refund. The supplemental tax is due and payable and the
refund,
if any, is due July 1, 1995 without interest. If the
supplemental
tax is paid after August 1, 1995, the tax is payable
with
interest due at the rate of 1% per month or portion of a month
calculated
from January 15, 1995 to the date of payment.
(2) A railroad company is allowed a credit against the tax
imposed by this act for the tax year in an amount equal to 25% of
the amount expended for the maintenance or improvement of rights of
way, including those items, except depreciation, in the official
maintenance-of-way and capital track accounts of the railroad
company in this state during the calendar year immediately
preceding the tax year but not to exceed the total liability for
the tax under this act. The manner of applying for the credit and
the proof of expenditures required shall be prescribed by the state
board
of assessors tax commission.
(3) A railroad company that claims a credit under this section
is
required to file an annual report with the state board of
assessors
tax commission that shall include detailed data of right
of way work conducted in this state during the past calendar year.
The
state board of assessors tax
commission shall transmit a copy
of the report to the chairperson of the senate finance committee
and
the house taxation tax
policy committee. This report submitted
to
the state board of assessors tax
commission shall include the
number of notices of violation from railway inspectors by railroad
section, and shall include a detailed account of the location and
the nature of the work. The location of the work shall be defined
by the railroad section or mile posts surrounding the work area
plus the county, city, or township in which the work was performed.
This report shall include a separation of costs by labor and
materials on each project. The report also shall include an
itemized account of what work was done. This account shall be
itemized by the following categories:
(a) Miles of track laid.
(b) Tons of new ballast installed.
(c) Number of ties installed.
(d) Miles of tracks surfaced.
(e) Signals installed.
(f) Under drainage work done.
(4) The railroad companies, in order to qualify for the full
25%
credit under this act, must shall
demonstrate to the state
board
of assessors tax commission that the highest priority of
expenditures for the maintenance or improvement of rights of way
has been given to rail lines that handle hazardous materials,
especially those that are located in urban or residential areas. A
railroad company that claims a credit under this section is
required
to file an annual report with the state board of assessors
tax commission that shall include detailed data on the tonnages of
hazardous materials handled in relation to tonnages of other
traffic handled over the rail line for which a tax credit is being
applied.
(5) A railroad company utilizing the property tax credit
provisions of this act shall grant to another railroad company,
upon
application, by the latter, trackage rights over its line
for
trains, providing that the train operations do not interfere with
the movement of Michigan freight using the same trackage, if
operations can be accomplished safely in the opinion of the grantor
and if trackage arrangements and train operations are approved by
the interstate commerce commission. The grantee shall pay the
grantor reasonable charges agreed to between the 2 parties if the
charges and terms of the agreement between the 2 parties are not in
violation
of the antitrust provisions of federal laws. law.
Sec. 13a. (1) Subject to subsection (2), an eligible company
is allowed a credit against the tax imposed under this act for the
tax year equal to the amount of eligible expenses incurred during
the calendar year immediately preceding the tax year for which the
credit under this subsection is claimed.
(2) The sum of the credits under subsection (1) and section
13(2) shall not exceed an eligible company's liability for the tax
levied under this act in the tax year in which the credit is
claimed.
(3) An eligible company may apply for the credit under
subsection
(1) by submitting to the state board of assessors tax
commission an application in the form prescribed by the state board
of
assessors tax commission.
(4)
If the board state tax
commission determines that for any
eligible company the sum of the credits provided in this section
and in section 13(2) equals the eligible company's liability for
the tax levied under this act before application of the credits,
the
board state tax commission
may waive the application
requirement in subsection (3) and the reports and statements
required under sections 6, 7, 8, and 13. A waiver under this
subsection
does not affect the board's state
tax commission's
powers under section 3.
(5) As used in this section:
(a) "Eligible company" means railroad companies, union station
and depot companies, sleeping car companies, express companies, car
loaning companies, stock car companies, refrigerator car companies,
fast freight line companies, and all other companies owning,
leasing, running, or operating any freight, stock, refrigerator, or
any other cars not the exclusive property of a railroad company
paying taxes upon its rolling stock under this act, over or upon
the line or lines of any railroad in this state.
(b) "Eligible expenses" means 1 or more of the following:
(i) Expenses incurred in this state to maintain or improve an
eligible company's qualified rolling stock.
(ii) Seventy-five percent of the expenses incurred in this
state for maintenance or improvement of rights-of-way, including
those items, except depreciation, in the official maintenance-of-
way and capital track accounts of the eligible company.
(c) "Qualified rolling stock" means any freight, stock,
refrigerator, or other railcars subject to the tax levied under
this act.
Sec. 13b. (1) Subject to subsections (2), (3), and (4), a
company shall be allowed a credit against the tax imposed under
this act for the tax year equal to 6% of eligible expenditures
incurred in the calendar year immediately preceding the tax year
for which the credit under this subsection is claimed.
(2) The amount of the credit under subsection (1) shall
be
limited as follows:
(a)
For the 2003 tax year, the credit shall not exceed 3% of
the
company's liability for the tax levied under this act in the
2003
tax year.
(b)
For the 2004 tax year, the credit shall not exceed the
greater
of 6% of the company's liability for the tax levied under
this
act in the 2004 tax year or 100% of the credit the company
received
under this subsection in the 2003 tax year.
(c)
For the 2005 tax year, the credit shall not exceed the
greater
of 9% of the company's liability for the tax levied under
this
act in the 2005 tax year or 100% of the credit the company
received
under this subsection in the 2004 tax year.
(d)
For the 2006 tax year and each year after the 2006 tax
year,
the credit shall not exceed the
greater of 12% of the
company's liability for the tax levied under this act in the tax
year in which the credit is claimed or 100% of the credit the
company received under this subsection in the immediately preceding
tax year.
(3) The amount of the credit under subsection (1) shall not
exceed a company's liability for the tax levied under this act in
the tax year in which the credit is claimed.
(4) A credit under subsection (1) may not be claimed by a
company in a tax year in which 1 or more of the following
conditions apply:
(a) The company is not subject to the annual maintenance fee
required under section 8 of the metropolitan extension
telecommunications rights-of-way oversight act, 2002 PA 48, MCL
484.3108.
(b) The company is subject to the annual maintenance fees
required under section 8 of the metropolitan extension
telecommunications rights-of-way oversight act, 2002 PA 48, MCL
484.3108, and has failed to pay the annual maintenance fees that
are due and payable as of May 1 in that year.
(5) After any credit under subsection (1) is determined, a
company shall be allowed a credit against any remaining tax imposed
under this act equal to the credit allowed under section 8 of the
metropolitan extension telecommunications rights-of-way oversight
act, 2002 PA 48, MCL 484.3108, less the amount of any credit
determined under subsection (1). If the credit allowed under this
subsection for the tax year and any unused carryforward of the
credit allowed by this subsection exceed the company's remaining
tax liability for the tax year after any credit under subsection
(1) is determined, that portion of the credit that exceeds the
remaining tax liability for the tax year shall not be refunded but
may be carried forward to offset any tax liability in subsequent
tax years that remains after any credit claimed under subsection
(1) in that subsequent tax year is determined until used up. A
credit may not be claimed under this subsection in a tax year in
which 1 or more of the conditions set forth in subsection (4)
apply.
(6) A company may apply for the credit under subsection (1) by
submitting
to the state board of assessors tax
commission an
application
in a form prescribed by the state board of assessors
tax commission at the time the annual report required under section
6 is due.
(7) A company may apply for the credit under subsection (5) by
submitting
to the state board of assessors tax
commission an
application
in a form prescribed by the state board of assessors
tax commission before May 1.
(8) As used in this section:
(a) "Eligible expenditures" means expenditures made by a
company to purchase and install eligible equipment after December
31, 2001.
(b) "Eligible equipment" means property placed into service in
this state for the first time with information carrying capability
in excess of 200 kilobits per second in both directions.
Sec.
14. (1) The state board of assessors tax commission shall
tax the property of the companies subject to taxation under this
act based upon the taxable value of the property determined by the
state
board of assessors tax
commission and at the rate determined
by
the state board of assessors tax
commission. The amount of tax
to be paid by each company assessed shall be extended on the
assessment roll, opposite the description of that company's
property. After the tax roll is completed, and before June 20 in
each
year, the state board of assessors tax commission shall attach
to the tax roll a certificate signed by the members of the state
board
of assessors tax commission, or a majority of the members of
the
state board of assessors tax
commission, that states "We do
hereby certify that we have set down in the above assessment roll
all of the property of railroad companies, express companies, union
station and depot companies, telegraph and telephone companies, car
loaning, stock car, refrigerator, fast freight line, and other car
companies, and other companies owning, leasing, running, or
operating cars, and sleeping car companies liable to be taxed in
this state, according to our best information, and that we have
determined the true cash value and taxable value of that property,
and that we have assessed the taxes on that property at the average
rate of taxes for state, county, township, school, municipal, and
other purposes levied through this state during the preceding year
as determined by us.".
(2)
The tax roll shall be delivered to the commissioner of
revenue
state treasurer, who shall immediately notify by registered
mail each company taxed to pay the taxes extended on the tax roll
to the state treasurer. The taxes assessed are payable on July 1
following the assessment and levy of those taxes, and are in lieu
of all ad valorem taxes for state and local purposes, not including
special assessments on property particularly benefited made in any
county, city, village, or township. All taxes not paid before
August 1 in the year in which those taxes are payable shall bear
interest from August 1 at the rate of 1% per month or fraction of a
month. However, if 1/2 of the amount of the taxes due are paid
before August 1, the remaining taxes due may be paid before the
immediately succeeding December 1 without interest, otherwise the
taxes unpaid on August 1 shall bear interest as provided in this
section.
The taxes levied are a debt of the company assessed to the
this state and are a lien on all of the property of that company,
real, personal, and mixed. A lien under this section takes
precedence over all demands, judgments, assignments by warranty
deed or otherwise, or decrees against the company assessed. A lien
and debt under this section may be enforced by the seizure or sale
of the property assessed or any portion of the property assessed
necessary
to satisfy the lien and debt. The state board of
assessors
tax commission shall, upon the completion of the tax roll
and the correction of the tax roll as provided in this act, annex
to
the tax roll a warrant, signed by the board state tax commission
or
a majority of the state board of assessors tax commission,
commanding
the commissioner of revenue state
treasurer to collect
the taxes due under this act. The warrant shall authorize and
command
the commissioner of revenue state
treasurer, in case any
corporation, company, or person named in the tax roll does not pay
the tax due under this act, to levy the tax due by distress and
sale of the property of that corporation, company, or person or any
portion of that property necessary to raise sufficient money to
satisfy the tax due and the expense of the sale, after giving the
corporation, company, or person notice of the sale as provided by
law for the sale of property seized for taxes and offered for sale.
However,
the commissioner state
treasurer may bring an action in
the name of the people of this state in any court of competent
jurisdiction in this state, or in any other state, to enforce the
lien. and
after obtaining If the state
treasurer obtains a judgment
or decree, the judgment or decree may be collected by execution,
levy, and sale.
Sec. 16. No tax assessed upon any property and no average rate
determined
by said state board of assessors as hereinbefore
required,
the state tax commission as
required under this act shall
be held invalid by any court of this state on account of any
irregularity in any assessment, or on account of any assessment or
tax roll not having been made or proceeding had within the time
required by law, or on account of the property having been assessed
without the name of the owner, or in the name of any corporation or
person other than the owner, or on account of any other
irregularity, informality, or omission, if the method and manner of
ascertaining and determining the average rate of taxation on
property in this state is in accordance with the constitution and
statutes of this state.
Sec.
19. If the state board of assessors tax commission
willfully assesses any property at more or less than what the
members taking part in making that assessment believe to be its
true cash value or taxable value, each member voting in favor of
that assessment is guilty of a misdemeanor punishable by
imprisonment in the county jail for not more than 1 year or by a
fine of not more than $5,000.00.
Enacting section 1. Sections 1 and 2 of 1905 PA 282, MCL 207.1
and 207.2, are repealed.
Enacting section 2. 1905 PA 282, MCL 207.1 to 207.21, is
repealed effective 90 days after the effective date of this
amendatory act.