Bill Text: MI HB5390 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Property tax; utility property; broadband investment credit; increase and sunset. Amends sec. 13b of 1905 PA 282 (MCL 207.13b) & repeals sec. 13b of 1905 PA 282 (MCL 207.13b).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5390 Detail]
Download: Michigan-2009-HB5390-Introduced.html
HOUSE BILL No. 5390
September 17, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Tax Policy.
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 section 13b (MCL 207.13b), as added by 2002 PA 50; and
to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 the following:
(a) Before January 1, 2010, 6% of eligible expenditures
incurred in the calendar year immediately preceding the tax year
for which the credit under this subsection is claimed.
(b) After December 31, 2009, 7% 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 an application in a form
prescribed by the state board of assessors 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 an application in a form
prescribed by the state board of assessors 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.
Enacting section 1. Section 13b of 1905 PA 282, MCL 207.13b,
is repealed December 31, 2010.
