SENATE BILL No. 999

January 9, 2002, Introduced by Senators GARCIA and SCHUETTE and referred to the Committee

on Technology and Energy.

A bill to amend 1905 PA 282, entitled

"An act to provide for the assessment of the property, by whomso-

ever owned, operated or conducted, of railroad companies, union

station and depot companies, telegraph companies, telephone com-

panies, 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,"

(MCL 207.1 to 207.21) by adding section 13b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 13B. (1) SUBJECT TO SUBSECTIONS (2), (3), AND (4), A

2 COMPANY SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER

3 THIS ACT FOR THE TAX YEAR EQUAL TO 4% OF ELIGIBLE EXPENDITURES

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2

1 INCURRED IN THE CALENDAR YEAR IMMEDIATELY PRECEDING THE TAX YEAR

2 FOR WHICH THE CREDIT UNDER THIS SUBSECTION IS CLAIMED.

3 (2) THE AMOUNT OF THE CREDIT UNDER SUBSECTION (1) SHALL BE

4 LIMITED AS FOLLOWS:

5 (A) FOR THE 2003 TAX YEAR, THE CREDIT SHALL NOT EXCEED 3% OF

6 THE COMPANY'S LIABILITY FOR THE TAX LEVIED UNDER THIS ACT IN THE

7 2003 TAX YEAR.

8 (B) FOR THE 2004 TAX YEAR, THE CREDIT SHALL NOT EXCEED THE

9 GREATER OF 6% OF THE COMPANY'S LIABILITY FOR THE TAX LEVIED UNDER

10 THIS ACT IN THE 2004 TAX YEAR OR 100% OF THE CREDIT THE COMPANY

11 RECEIVED UNDER THIS SECTION IN THE 2003 TAX YEAR.

12 (C) FOR THE 2005 TAX YEAR, THE CREDIT SHALL NOT EXCEED THE

13 GREATER OF 9% OF THE COMPANY'S LIABILITY FOR THE TAX LEVIED UNDER

14 THIS ACT IN THE 2005 TAX YEAR OR 100% OF THE CREDIT THE COMPANY

15 RECEIVED UNDER THIS SECTION IN THE 2004 TAX YEAR.

16 (D) FOR THE 2006 TAX YEAR AND EACH YEAR AFTER THE 2006 TAX

17 YEAR, THE CREDIT SHALL NOT EXCEED THE GREATER OF 12% OF THE

18 COMPANY'S LIABILITY FOR THE TAX LEVIED UNDER THIS ACT IN THE TAX

19 YEAR IN WHICH THE CREDIT IS CLAIMED OR 100% OF THE CREDIT THE

20 COMPANY RECEIVED UNDER THIS SECTION IN THE IMMEDIATELY PRECEDING

21 TAX YEAR.

22 (3) THE AMOUNT OF THE CREDIT UNDER SUBSECTION (1) SHALL NOT

23 EXCEED A COMPANY'S LIABILITY FOR THE TAX LEVIED UNDER THIS ACT IN

24 THE TAX YEAR IN WHICH THE CREDIT IS CLAIMED.

25 (4) A CREDIT UNDER SUBSECTION (1) MAY NOT BE CLAIMED BY A

26 COMPANY IN A TAX YEAR IN WHICH 1 OR MORE OF THE FOLLOWING APPLY:

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1 (A) THE COMPANY IS NOT SUBJECT TO THE ANNUAL MAINTENANCE FEE

2 REQUIRED UNDER SECTION 8 OF THE METROPOLITAN EXTENSION

3 TELECOMMUNICATIONS RIGHTS-OF-WAY OVERSIGHT ACT.

4 (B) THE COMPANY IS SUBJECT TO THE ANNUAL MAINTENANCE FEES

5 REQUIRED UNDER SECTION 8 OF THE METROPOLITAN EXTENSION TELECOM-

6 MUNICATIONS RIGHTS-OF-WAY OVERSIGHT ACT, AND HAS FAILED TO PAY

7 THE ANNUAL MAINTENANCE FEES THAT ARE DUE AND PAYABLE AT THE TIME

8 THE ANNUAL REPORT REQUIRED UNDER SECTION 6 IS DUE.

9 (5) A COMPANY MAY APPLY FOR THE CREDIT UNDER SUBSECTION (1)

10 BY SUBMITTING TO THE STATE BOARD OF ASSESSORS AN APPLICATION IN A

11 FORM PRESCRIBED BY THE STATE BOARD OF ASSESSORS.

12 (6) AS USED IN THIS SECTION:

13 (A) "ELIGIBLE EXPENDITURES" MEANS EXPENDITURES MADE BY A

14 COMPANY TO PURCHASE AND INSTALL ELIGIBLE EQUIPMENT AFTER DECEMBER

15 31, 2001.

16 (B) "ELIGIBLE EQUIPMENT" MEANS PROPERTY PLACED INTO SERVICE

17 FOR THE FIRST TIME WITH INFORMATION CARRYING CAPABILITY IN EXCESS

18 OF 200 KILOBITS PER SECOND IN BOTH DIRECTIONS.

19 Enacting section 1. This amendatory act does not take

20 effect unless all of the following bills of the 91st Legislature

21 are enacted into law:

22 (a) Senate Bill No. 880.

23 (b) Senate Bill No. 881.

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