June 9, 2005, Introduced by Rep. Condino 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 2002 PA 669.
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) For taxes levied after December 31, 1992 and before
October 1, 2005, 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.
(3) 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.
(4) As used in this section:
(a) "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.
(b) "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.
(c) "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.
(d) "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.
(e) "Rolling stock" means a qualified truck, a trailer
designed to be drawn behind a qualified truck, and parts affixed to
either a qualified truck or a trailer designed to be drawn behind a
qualified truck.