HB-4572, As Passed Senate, November 13, 2014

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4572

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

(MCL 205.51 to 205.78) by adding section 4ee.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4ee. (1) Notwithstanding any other provision of this act

 

to the contrary, for the calendar year beginning January 1, 2016, a

 

person engaged in the business of making sales at retail of jet

 

fuel exclusively for use in aircraft operated by or for a single

 

qualifying airline may claim a refund of the tax due and remitted

 

to the department under this act for sales at retail of jet fuel

 

exclusively for use in aircraft operated by or for a single

 

qualifying airline occurring during calendar year 2014 and calendar

 

year 2015. The amount of the refund allowable under this subsection

 

shall be calculated as follows:

 

     (a) For the calendar year beginning January 1, 2014, the

 

amount of the refund shall be calculated as follows:

 

     (i) Multiply the amount of tax due and remitted to the

 

department in excess of $25,000,000.00 but less than $36,000,000.00

 

by 1.

 

     (ii) Multiply the amount of tax due and remitted to the

 

department in excess of $36,000,000.00 by .3333, and add the result

 

of that calculation to the product of the calculation performed in

 

subparagraph (i).

 

     (iii) Multiply the result of the calculation in subparagraph (ii)

 

by 0.25.

 

     (b) For the calendar year beginning January 1, 2015, the

 

amount of the refund shall be calculated as follows:

 

     (i) Multiply the amount of tax due and remitted to the

 

department in excess of $25,000,000.00 but less than $36,000,000.00

 

by 1.

 

     (ii) Multiply the amount of tax due and remitted to the

 

department in excess of $36,000,000.00 by .3333, and add the result

 

of that calculation to the product of the calculation performed in

 

subparagraph (i).

 

     (2) Notwithstanding any other provision of this act to the

 

contrary, for the calendar year beginning January 1, 2017 and for

 

each calendar year thereafter, a person engaged in the business of

 

making sales at retail of jet fuel exclusively for use in aircraft

 

operated by or for a single qualifying airline may claim a refund

 

of the tax due and remitted to the department under this act for

 

sales at retail of jet fuel exclusively for use in aircraft

 

operated by or for a single qualifying airline for the immediately

 

preceding calendar year. The amount of the refund allowable under

 

this subsection shall be calculated as follows:

 

     (a) Multiply the amount of tax due and remitted to the

 

department in excess of $25,000,000.00 but less than $36,000,000.00

 

by 1.

 

     (b) Multiply the amount of tax due and remitted to the

 

department in excess of $36,000,000.00 by .3333, and add the result

 

of that calculation to the product of the calculation performed in

 

subparagraph (i).

 

     (3) A refund claim under this section shall be made on a form

 

prescribed by the department and shall be substantiated by any

 

information the department requires. A person is not entitled to a

 

refund under this section for a calendar year unless the person has

 

filed with the department all of the returns required to be filed

 

under this act for that calendar year.

 

     (4) As used in this section:

 

     (a) "Jet fuel" means fuel that is designed for use in the

 

operation of jet or turbo-prop aircraft and that is sold or used

 

for that purpose.

 

     (b) "Qualifying airline" means an entity engaged primarily in

 

the commercial transport for hire of passengers as a business

 

activity that meets all of the following criteria:

 

     (i) Is authorized by the federal aviation administration or

 

other appropriate agency of the United States to operate as an air

 

carrier under an air carrier operating certificate.

 

     (ii) Provides regularly scheduled flights for the

 

transportation of passengers.

 

     (iii) Had at least 100,000 total departures of aircraft from

 

airports in this state during the calendar year for which a refund

 

under this section is claimed. As used in this subparagraph,

 

"departures of aircraft" for an air carrier includes departures of

 

aircraft operated by any other air carrier, including a regional

 

carrier or contracted connection carrier, if the departure was on

 

behalf of that air carrier.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 5477 of the 97th Legislature is enacted into

 

law.