HB-5066, As Passed House, December 8, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 5066

     A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

by amending section 413 (MCL 208.1413), as amended by 2007 PA 145.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 413. (1) Subject to subsection (2), a taxpayer may claim

a credit against the tax imposed by this act equal to the

following:

     (a) For property taxes levied after December 31, 2007, 35% of

the amount paid for property taxes on eligible personal property in

the tax year.

     (b) Twenty-three percent of the amount paid for property taxes

levied on eligible telephone personal property in the 2008 tax year

and 13.5% of the amount paid for property taxes levied on eligible

telephone personal property in subsequent tax years.

     (c) For property taxes levied after December 31, 2007, 10% of

the amount paid for property taxes on eligible natural gas pipeline

property in the tax year.

     (2) To qualify for the credit under subsection (1), the

taxpayer shall file, if applicable, within the time prescribed each

of the following:

     (a) The statement of assessable personal property prepared

pursuant to section 19 of the general property tax act, 1893 PA

206, MCL 211.19, identifying the eligible personal property or

eligible natural gas pipeline property, or both, for which the

credit under subsection (1) is claimed.

     (b) The annual report filed under section 6 of 1905 PA 282,

MCL 207.6, identifying the eligible telephone personal property for

which the credit under subsection (1) is claimed.

     (c) The assessment or bill issued to and paid by the taxpayer

for the eligible personal property, eligible natural gas pipeline

property, or eligible telephone property for which the credit under

subsection (1) is claimed.

     (3) If the amount of the credit allowed under this section

exceeds the tax liability of the taxpayer for the tax year, that

excess shall be refunded.

     (4) As used in this section:

     (a) "Eligible natural gas pipeline property" means natural gas

pipelines that are classified as utility personal property under

section 34c of the general property tax act, 1893 PA 206, MCL

211.34c, and are subject to regulation under the natural gas act,

15 USC 717 to 717z.

     (b) "Eligible personal property" means the following:

     (i) Except as otherwise provided in subparagraph (ii), personal

property that is classified as industrial personal property under

section 34c of the general property tax act, 1893 PA 206, MCL

211.34c, or in the case of personal property that is subject to

1974 PA 198, MCL 207.551 to 207.572, is situated on land classified

as industrial real property under section 34c of the general

property tax act, 1893 PA 206, MCL 211.34c.

     (ii) Beginning December 30, 2010, eligible personal property

does not include turbines used in the generation of electricity by

a user, owner, or operator of the bulk-power system. As used in

this subparagraph, "bulk-power system" means that term as described

in 18 CFR 39.2.

     (c) "Eligible telephone personal property" means personal

property of a telephone company subject to the tax levied under

1905 PA 282, MCL 207.1 to 207.21.

     (d) "Property taxes" means any of the following:

     (i) Taxes collected under the general property tax act, 1893 PA

206, MCL 211.1 to 211.155.

     (ii) Taxes levied under 1974 PA 198, MCL 207.551 to 207.572.

     (iii) Taxes levied under the obsolete property rehabilitation

act, 2000 PA 146, MCL 125.2781 to 125.2797.

     (iv) Taxes levied under 1905 PA 282, MCL 207.1 to 207.21.

     Enacting section 1. This amendatory act is retroactive and is

effective December 30, 2010.