Bill Text: MI HB4169 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Use tax; exemptions; purchase of certain aviation equipment; exempt. Amends sec. 4k of 1937 PA 94 (MCL 205.94k).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-02-14 - Bill Electronically Reproduced 02/14/2019 [HB4169 Detail]
Download: Michigan-2019-HB4169-Introduced.html
HOUSE BILL No. 4169
February 13, 2019, Introduced by Reps. Byrd and Kahle and referred to the Committee on Tax Policy.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 4k (MCL 205.94k), as amended by 2012 PA 429.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4k. (1) The tax levied under this act does not apply to
parts
and materials, excluding shop equipment or fuel, affixed to
or
to be affixed to an aircraft owned or used by a domestic air
carrier
that is any of the following:
(a)
An aircraft for use solely in the transport of air cargo
or
a combination of air cargo and passengers that has a maximum
certificated
takeoff weight of at least 12,500 pounds for taxes
levied
before January 1, 1997 and at least 6,000 pounds for taxes
levied
after December 31, 1996.
(b)
An aircraft that is used solely in the regularly scheduled
transport
of passengers.
(c)
An aircraft other than an aircraft described in
subdivision
(b), that has a maximum certificated takeoff weight of
at
least 12,500 pounds for taxes levied before January 1, 1997 and
at
least 6,000 pounds for taxes levied after December 31, 1996, and
that
is designed to have a maximum passenger seating configuration
of
more than 30 seats and is used solely in the transport of
passengers.the use of an aircraft by a domestic air
carrier if the
aircraft has a maximum certificated takeoff weight of at least
6,000 pounds and is used solely in the transport of air cargo,
passengers, or a combination of air cargo and passengers.
(2) The tax levied under this act does not apply to the sale
of parts or materials, excluding shop equipment or fuel, affixed or
to
be affixed to an aircraft. that meets all of the following
conditions:
(a)
The aircraft leaves this state within 15 days after the
sooner
of the issuance of the final billing or authorized approval
for
final return to service, completion of the maintenance record
entry,
and completion of the test flight and ground test for
inspection
as required under 14 CFR 91.407.
(b)
The aircraft was not based in this state or registered in
this
state before the parts or materials are affixed to the
aircraft
and the aircraft is not based in this state or registered
in
this state after the parts or materials are affixed to the
aircraft.
(3) The tax levied under this act does not apply to the sale
of an aircraft temporarily located in this state for the purpose of
a sale and prepurchase evaluation, customization, improvement,
maintenance, or repair if all of the following conditions are
satisfied:
(a) The aircraft leaves this state within 15 days after the
sale and the completion of any prepurchase evaluation,
customization, improvement, maintenance, or repair that is
associated with the sale, whichever is later.
(b) The aircraft was not based in this state or registered in
this state before the sale and any prepurchase evaluation,
customization, improvement, maintenance, or repair associated with
the sale is completed and the aircraft is not based in this state
or registered in this state after the sale and any prepurchase
evaluation, customization, improvement, maintenance, or repair
associated with the sale is completed.
(4) For taxes levied after December 31, 1992, the tax levied
under this act does not apply to the storage, use, or consumption
of rolling stock used in interstate commerce and purchased, rented,
or leased by an interstate fleet motor carrier. A refund for taxes
paid before January 1, 1997 shall not be paid under this subsection
if the refund claim is made after June 30, 1997.
(5) For taxes levied after December 31, 1996 and before May 1,
1999, the tax levied under this act does not apply to the product
of the out-of-state usage percentage and the price otherwise
taxable under this act of a qualified truck or a trailer designed
to be drawn behind a qualified truck, purchased, rented, or leased
in this state by an interstate fleet motor carrier and used in
interstate commerce.
(6) As used in this section:
(a) "Aircraft" means an aerial vehicle that is used in
aviation, other than an unmanned aerial vehicle.
(b) (a)
"Based in this state"
means hangared or stored in this
state for not less than 10 days in not less than 3 nonconsecutive
months during the immediately preceding 12-month period.
(c) (b)
"Customization" means any
improvement, maintenance, or
repair that is performed on an aircraft that is associated with the
sale of the aircraft.
(d) (c)
"Domestic air carrier"
means a person engaged
primarily in the commercial transport for hire of air cargo,
passengers, or a combination of air cargo and passengers as a
business activity.
(e) (d)
"Interstate fleet 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.
(f) (e)
"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 taxpayer and the denominator of which is the total
miles driven in the immediately preceding tax year by qualified
trucks used by the taxpayer. Miles driven by qualified trucks used
solely in intrastate commerce shall not be included in calculating
the out-of-state usage percentage.
(g) (f)
"Prepurchase evaluation"
means an examination of an
aircraft to provide a potential purchaser with information relevant
to the potential purchase.
(h) (g)
"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.
(i) (h)
"Registered in this
state" means an aircraft
registered with the state transportation department, bureau of
aeronautics
or registered with the federal aviation administration
Federal Aviation Administration to an address located in this
state.
(j) (i)
"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 or to be 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 takes effect 90 days
after the date it is enacted into law.
