HB-5505, As Passed House, May 20, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5505

                                                                             A bill to impose taxes and create credits and refundable                          

credits to modify and equalize the impact of changes made to the            

general sales tax act and use tax act necessary to bring those              

taxes into compliance with the streamlined sales tax agreement so           

this state may participate in the streamlined sales tax system              

and governing board; to prescribe certain powers and duties of              

certain state departments; and to provide for the disbursement of           

certain proceeds.                                                           

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 1.  This act shall be known and may be cited as the                    

2   "streamlined sales and use tax revenue equalization act".                   

3       Sec. 3.  As used in this act:                                               

4       (a) "Department" means the department of treasury.                          

5       (b) "Diesel fuel" means that term as defined in section 2(p)                

6   of the motor fuel tax act, 2000 PA 403, MCL 207.1002.                       

1       (c) "Interstate motor carrier" means a person who operates or               

2   causes to be operated a qualified commercial motor vehicle on a             

3   public road or highway in this state and at least 1 other state             

4   or Canadian province.                                                       

5       (d) "Person" means an individual, firm, partnership, joint                  

6   venture, association, social club fraternal organization,                   

7   municipal or private corporation whether or not organized for               

8   profit, company, limited liability company, estate, trust                   

9   receiver, trustee, syndicate, the United States, this state,                

10  country, or any other group or combination acting as a unit, and            

11  the plural as well as the singular number, unless the intention             

12  to give a more limited meaning is disclosed by the context.                 

13      (e) "Qualified commercial motor vehicle" means that term as                 

14  defined in section 1 of the motor carrier fuel tax act, 1980 PA             

15  119, MCL 207.211.                                                           

16      (f) "Sales tax" means the tax levied under the general sales                

17  tax act, 1933 PA 167, MCL 205.51 to 205.78.                                 

18      (g) "Tax" includes all taxes, interest, or penalties levied                 

19  under this act.                                                             

20      (h) "Taxpayer" means a person subject to tax under this act.                

21      (i) "Use tax" means the tax levied under the use tax act,                   

22  1937 PA 94, MCL 205.91 to 205.111.                                          

23      Sec. 5.  (1) There is levied upon and there shall be                        

24  collected from every person in this state who is an interstate              

25  motor carrier a specific tax for the privilege of using or                  

26  consuming diesel fuel in a qualified commercial motor vehicle in            

27  this state at a cents-per-gallon rate equal to 6% of the                    

1   statewide average retail price of a gallon of self-serve diesel             

2   fuel rounded down to the nearest 1/10 of a cent as determined and           

3   certified quarterly by the department.  This tax on diesel fuel             

4   used by interstate motor carriers in a qualified commercial motor           

5   vehicle shall be collected under the international fuel tax                 

6   agreement.                                                                  

7       (2) An interstate motor carrier is entitled to a credit for                 

8   6% of the price of diesel fuel purchased in this state and used             

9   in a qualified commercial motor vehicle.  This credit shall be              

10  claimed on the returns filed under the international fuel tax               

11  agreement.                                                                  

12      Sec. 9.  (1) Except as provided in subsection (2), there is                 

13  levied upon and there shall be collected from every person in               

14  this state a specific tax on the privilege of storing,                      

15  registering, or transferring ownership of any vehicle other than            

16  a vehicle stored, registered, or transferred by a new or used               

17  vehicle dealer licensed by the department of state, ORV,                    

18  manufactured housing, aircraft other than a qualified aircraft              

19  under section 11, snowmobile, or watercraft in this state at a              

20  rate of 6% of the retail dollar value at the time of acquisition            

21  as determined by the department of treasury.  The tax shall be              

22  paid by the transferee.  The tax on a vehicle, ORV, snowmobile,             

23  and watercraft shall be collected by the secretary of state                 

24  before the transfer of the vehicle, ORV, snowmobile, or                     

25  watercraft registration.  The tax on an aircraft shall be paid to           

26  the department.  The tax on manufactured housing shall be                   

27  collected by the department of consumer and industry services,              

1   mobile home commission, or its agent before the transfer of the             

2   certificate of title.                                                       

3       (2) A transfer for purposes of resale or a transfer that is                 

4   exempt under any other exemption under the use tax act is exempt            

5   from the tax levied under subsection (1).  A transfer subject to            

6   tax under the general sales tax act is exempt from the tax levied           

7   under subsection (1).                                                       

8       (3) A credit against the tax levied under subsection (1) is                 

9   allowed for an amount equal to any use tax paid by the taxpayer             

10  on the same property.  The credit under this section shall not              

11  exceed the tax imposed by this act.                                         

12      Sec. 11.  (1) Except as provided in subsection (2), there is                

13  levied upon and there shall be collected from every person in               

14  this state a specific tax for the privilege of storing,                     

15  registering, or transferring ownership in this state of a                   

16  qualified aircraft at a rate of 6% of the retail value of the               

17  aircraft at the time it first enters this state.  The transferee            

18  shall pay the tax to the department.  An aircraft is qualified if           

19  it was purchased outside of this state and is used solely for               

20  personal, nonbusiness purposes and if 1 of the following                    

21  applies:                                                                    

22      (a) The aircraft is purchased by a person who is not a                      

23  resident of this state at the time of purchase and is brought               

24  into this state more than 90 days after the date of purchase.               

25      (b) The aircraft is purchased by a person who is a resident                 

26  of this state at the time of purchase and is brought into this              

27  state more than 360 days after the date of purchase.                        

1       (2) The storage, registration, or transfer of an aircraft for               

2   purposes of resale or of an aircraft that is exempt under any               

3   other exemption under the use tax act is exempt from the tax                

4   levied under subsection (1).                                                

5       (3) A credit against the tax levied under subsection (1) is                 

6   allowed in an amount equal to the amount by which any use tax on            

7   the aircraft if paid exceeds the amount of the tax under this               

8   act, which shall be refunded by the department.                             

9       Sec. 13.  A person who paid a tax under the use tax act may                 

10  calculate a credit and seek a refund from the department under              

11  this act in an amount equal to 6% of an assessment imposed under            

12  the convention and tourism marketing act, 1980 PA 383, MCL                  

13  141.881 to 141.889, 1974 PA 263, MCL 141.861 to 141.867, the                

14  state convention facility development act, 1985 PA 106, MCL                 

15  207.621 to 207.640, the regional tourism marketing act, 1989 PA             

16  244, MCL 141.891 to 141.900, 1991 PA 180, MCL 207.751 to 207.759,           

17  or the community convention or tourism marketing act, 1980 PA               

18  395, MCL 141.871 to 141.880, that was added to charges for rooms            

19  or lodgings subject to tax under section 3a of the use tax act,             

20  1937 PA 94, MCL 205.93a, but not to exceed the actual amount of             

21  use tax paid on those assessments.                                          

22      Sec. 15.  All money received and refunds paid under the                     

23  provisions of this act shall be deposited or disbursed in the               

24  following manner:                                                           

25      (a) Money received and refunds paid under section 5 of this                 

26  act shall be deposited or disbursed in accordance with the                  

27  provisions of section 9 of article IX of the state constitution             

1   of 1963.                                                                    

2       (b) Money received and refunds paid pursuant to all other                   

3   sections of this act shall be deposited or disbursed in the same            

4   manner as funds are received or paid pursuant to the use tax                

5   act.                                                                        

6       Sec. 17.  The taxes imposed by this act shall be                            

7   administered by the department under 1941 PA 122, MCL 205.1 to              

8   205.31, and this act.  If 1941 PA 122, MCL 205.1 to 205.31, and             

9   this act conflict, the provisions of this act apply.                        

10      Sec. 19.  Every person required to pay a tax to the                         

11  department under this act shall file a return in a form                     

12  prescribed by the department on or before the twentieth day of              

13  each month, except as otherwise provided by section 5 of this               

14  act.  Taxes imposed under this act shall accrue to this state on            

15  the last day of each calendar month.  To ensure payment or                  

16  provide a more efficient administration, the department may                 

17  require and prescribe the filing of returns and payment of the              

18  tax for other than monthly periods.                                         

19      Sec. 21.  At the option of the taxpayer, the credits and                    

20  refunds provided in this act may be applied to reduce the use tax           

21  due under the use tax act and the procedures implementing those             

22  use tax payment obligations.                                                

23      Enacting section 1.  This act takes effect July 1, 2004.                    

24      Enacting section 2.  This act does not take effect unless                   

25  all of the following bills of the 92nd Legislature are enacted              

26  into law:                                                                   

27      (a) House Bill No. 5502.                                                    

1       (b) House Bill No. 5503.                                                    

2       (c) House Bill No. 5504.