SENATE BILL No. 1238

April 18, 2002, Introduced by Senator EMMONS and referred to the Committee on Finance.

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,"

by amending sections 4, 5, and 9 (MCL 207.4, 207.5, and 207.9),

sections 4 and 9 as amended by 1995 PA 257.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4. (1) The state board of assessors shall annually

2 determine the true cash value and taxable value of property

3 having a situs in this state of railroad ALL OF THE FOLLOWING:

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1 (A) RAILROAD companies. , union

2 (B) UNION station and depot companies. , telegraph

3 (C) TELEGRAPH companies. , telephone

4 (D) TELEPHONE companies. , sleeping

5 (E) SLEEPING car companies. , express

6 (F) EXPRESS companies. , car

7 (G) CAR loaning companies. , stock

8 (H) STOCK car companies. , refrigerator

9 (I) REFRIGERATOR car companies. , fast

10 (J) FAST freight line companies. , and all

11 (K) ALL other companies owning, leasing, running, or operat-

12 ing any freight, stock, refrigerator, or any other cars not the

13 exclusive property of a railroad company paying taxes on its

14 rolling stock under the provisions of this act, over or on the

15 line or lines of any railroad in this state.

16 (2) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 2001, THE

17 STATE BOARD OF ASSESSORS SHALL ANNUALLY DETERMINE THE TRUE CASH

18 VALUE AND TAXABLE VALUE OF PROPERTY HAVING A SITUS IN THIS STATE

19 OF TELEGRAPH COMPANIES AND TELEPHONE COMPANIES IN THE SAME MAN-

20 NERS AS PROPERTY ASSESSED UNDER THE GENERAL PROPERTY TAX ACT,

21 1893 PA 206, MCL 211.1 TO 211.157.

22 (3) The property of a telegraph and telephone company with

23 gross receipts within this state for a year ending December 31 of

24 not more than $1,000.00 is exempt from taxation under this act.

25 (4) All telegraph and telephone companies doing business in

26 this state shall make the report required by UNDER section 6.

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1 Sec. 5. (1) The term property, as AS used in this act,

2 shall be deemed to include "PROPERTY" MEANS 1 OF THE

3 FOLLOWING:

4 (A) EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION (B), all

5 property, real or personal, belonging to the persons, corpora-

6 tions, companies, copartnerships, and associations subject to

7 taxation under this act, including the right of way

8 RIGHTS-OF-WAY, road bed BEDS, stations, cars, rolling stock,

9 tracks, wagons, horses, office furniture, telegraph and telephone

10 poles, wires, conduits, switchboards, and all other property

11 used in carrying on their business and owned by them respective-

12 ly, and all other real and personal property, and all

13 franchises. , said franchises FRANCHISES SHALL not to be

14 directly assessed, but to be taken into consideration SHALL BE

15 CONSIDERED in determining the value of the other property. :

16 Provided, however, That this definition shall PROPERTY DOES not

17 include, apply to, or subject to taxation , such PROPERTY OR

18 real estate as is PROPERTY owned and can be CAPABLE OF BEING

19 conveyed by such THE persons, corporations, companies,

20 copartnerships, and associations under the laws of this state

21 which SUBJECT TO TAXATION UNDER THIS ACT THAT is not actually

22 occupied in the exercise of their franchises, or in use in the

23 proper operation and conduct of their business. ; but such

24 real estate so excepted shall be liable

25 (B) FOR TELEGRAPH COMPANIES AND TELEPHONE COMPANIES ONLY,

26 FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 2001, ONLY PROPERTY

27 THAT WOULD BE SUBJECT TO THE COLLECTION OF TAXES UNDER THE

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1 GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO 211.157, IF

2 THAT PROPERTY WERE NOT SUBJECT TO TAXATION UNDER THIS ACT.

3 (2) REAL PROPERTY EXEMPT FROM THE TAX LEVIED UNDER THIS ACT

4 UNDER SUBSECTION (1) IS SUBJECT to taxation in the same manner,

5 and for the same purposes, and to the same extent, and

6 subject to the same conditions and limitations as to the collec-

7 tion and return of taxes thereon as is other real estate

8 PROPERTY in the several townships or municipalities in which

9 the same may be situated THAT PROPERTY IS LOCATED. The term

10 (3) AS USED IN THIS ACT, THE TERMS "company", "corporation",

11 "copartnership", "association", or AND "person" , wherever

12 used in this act, shall apply to and SHALL be construed as

13 referring respectively to any THE FOLLOWING:

14 (A) A railroad company, union station and depot company,

15 telegraph company, telephone company, sleeping car company,

16 express company, car loaning company, stock car company, refrig-

17 erator or fast freight line company, and OR any other companies

18 owning, leasing, running, or operating any freight CARS, stock

19 CARS, refrigerator CARS, or any other cars, not being

20 exclusively the EXCLUSIVE property of any A railroad company

21 paying taxes upon its rolling stock under the provisions of

22 this act, over or upon the line or lines of any railroad or rail-

23 roads in this state. ; and to any

24 (B) A firm, joint stock association, copartnership, corpora-

25 tion, or other association or person , engaged in carrying on

26 any business, the TANGIBLE property of which is subject to

27 taxation under this act. The term

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1 (4) AS USED IN THIS ACT, "property having a situs in this

2 state", " shall include INCLUDES all OF THE FOLLOWING:

3 (A) EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION (B), the

4 property, real and personal, of the persons, corporations, com-

5 panies, copartnerships, and associations enumerated in SUBJECT

6 TO TAXATION UNDER this act, owned, used, and occupied by them

7 within the limits of this state, and also such THE proportion

8 of their rolling stock, cars, and other property as is used

9 partly within and partly without OUTSIDE OF this state , as

10 herein provided to be determined IN THIS ACT.

11 (B) FOR TELEGRAPH COMPANIES AND TELEPHONE COMPANIES ONLY,

12 FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 2001, ONLY THE TANGI-

13 BLE PROPERTY, REAL AND PERSONAL, OWNED, USED, AND OCCUPIED BY

14 THEM WITHIN THIS STATE.

15 Sec. 9. (1) Not later than May 15 in each year, the state

16 board of assessors shall prepare an assessment roll upon which

17 they shall set forth the true cash value and taxable value on the

18 immediately preceding December 31 of all the property of the com-

19 panies subject to taxation under this act. A determination of

20 true cash value and taxable value is not final until reviewed as

21 provided in this act. For the purpose of arriving at the true

22 cash value and taxable value of the property on the assessment

23 roll, the state board of assessors may personally inspect the

24 property assessed, may consider the reports filed under this act

25 or reports and returns filed in the office of any officer of this

26 state or in the office of any other governmental agency, and any

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1 other evidence or information obtained or possessed by the state

2 board of assessors.

3 (2) In determining the true cash value and taxable value of

4 the property of a railroad, union station, and depot company that

5 owns, leases, operates, or uses lines partly within or partly

6 outside of this state, the state board of assessors shall con-

7 sider the proportion of the number of miles of all track con-

8 trolled or used by that company within this state to the entire

9 mileage of all track controlled or used by that company both

10 within and outside of this state. The state board of assessors

11 shall also consider any other uniform factors that reflect a fair

12 allocation of value to this state.

13 (3) In FOR TAX YEARS THAT BEGIN BEFORE JANUARY 1, 2002, IN

14 determining the true cash value and taxable value of the property

15 of a telegraph company or telephone company that owns, leases,

16 operates, or uses lines partly within and partly outside of this

17 state, the state board of assessors shall ONLY consider the pro-

18 portion of the number of miles of telegraph or telephone lines

19 controlled or used by that company within this state to the

20 entire mileage of telegraph or telephone lines controlled or used

21 by that company both within and outside of this state. The state

22 board of assessors shall also consider any other uniform factors

23 that reflect a fair allocation of value to this state.

24 (4) In determining the true cash value and taxable value of

25 the property of an express company, the state board of assessors

26 shall determine the actual value of the entire amount of the

27 capital stock and bonded indebtedness of that express company.

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1 From that amount, the state board of assessors shall determine

2 and deduct the actual value of all real property owned by that

3 express company, and the actual value of all personal property

4 owned by that express company that is not used in the express

5 business of that express company. The state board of assessors

6 shall then divide the remaining amount by the total number of

7 miles, as determined by the state board of assessors, of rail-

8 road, stage, water, and other routes over which the company did

9 business to obtain the value per mile. The state board of asses-

10 sors shall then multiply the value per mile by the total number

11 of miles of the routes within this state, as determined by the

12 state board of assessors. The state board of assessors shall

13 then add to the product of that calculation the value of all real

14 estate owned by that express company in this state, as determined

15 by the state board of assessors. The sum of this calculation is

16 the actual value of the property of that express company subject

17 to assessment and taxation in this state.

18 (5) If the state board of assessors determines that the

19 ocean routes of a company are so different in character from its

20 other routes that the mileage basis of apportionment of the value

21 of the entire property to be apportioned in this state would be

22 unfair if the full mileage of the ocean routes were included, the

23 state board of assessors may make an allowance for that company's

24 ocean routes to bring those ocean routes to parity with that

25 company's other routes. In making this determination, the state

26 board of assessors shall consider the relative mileage values and

27 earning capacities of the ocean routes and the other routes and

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1 shall require special reports of the character, mileage,

2 earnings, and value of the ocean routes. The state board of

3 assessors may exclude from its determination of aggregate mileage

4 any ocean routes on which the express company fails to furnish

5 the requisite reports, but no further penalty shall be imposed

6 for the failure to report the mileage of ocean routes.

7 (6) If a company claims in writing that the mileage basis of

8 apportionment of the value of the entire property to be

9 attributed to Michigan THIS STATE is unfair, the state board of

10 assessors shall make the apportionment that in its judgment is

11 fair. In making that apportionment, the state board of assessors

12 shall consider the mileage within and outside of this state,

13 making any necessary allowance for ocean mileage as provided in

14 this section.

15 (7) In determining the true cash value and taxable value of

16 the property in this state of car loaning, stock car, refrigera-

17 tor, fast freight lines, and other car companies, and other com-

18 panies owning, leasing, running, or operating cars subject to

19 taxation under this act, the state board of assessors shall con-

20 sider the proportion of the aggregate car mileage made or run by

21 the entire number of cars owned or operated by a company to the

22 car mileage made or run by the entire number of cars owned or

23 operated by that company within this state.

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