Bill Text: MI HB5445 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Use tax; exemptions; definition of rolling stock used by an interstate fleet motor carrier; clarify. Amends sec. 4k of 1937 PA 94 (MCL 205.94k).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-12-27 - Assigned Pa 429'12 With Immediate Effect [HB5445 Detail]
Download: Michigan-2011-HB5445-Introduced.html
HOUSE BILL No. 5445
February 28, 2012, Introduced by Rep. Gilbert 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 2009 PA 54.
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.
(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) "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.
(b) "Customization" means any improvement, maintenance, or
repair that is performed on an aircraft that is associated with the
sale of the aircraft.
(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.
(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.
(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.
(f) "Prepurchase evaluation" means an examination of an
aircraft to provide a potential purchaser with information relevant
to the potential purchase.
(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.
(h) "Registered in this state" means an aircraft registered
with the state transportation department, bureau of aeronautics or
registered with the federal aviation administration to an address
located in this state.
(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 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 is curative and
intended to clarify the original intent of 1996 PA 477.
