March 1, 2007, Introduced by Senators GLEASON, SCHAUER and THOMAS and referred to the Committee on Finance.
A bill to amend 2004 PA 175, entitled
"Streamlined sales and use tax revenue equalization act,"
(MCL 205.171 to 205.191) by adding section 10.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) Beginning June 1, 2007, a credit equal to 6% of
the product of the out-of-state mileage percentage and the price of
a qualified truck, a trailer designed to be drawn behind a
qualified truck, or parts affixed to either a qualified truck or a
trailer designed to be drawn behind a qualified truck, purchased,
rented, leased, or otherwise used in this state, and used in
interstate commerce, may be claimed by an interstate fleet motor
carrier on a form prescribed by the department. A credit shall not
be claimed in excess of that portion of the amount of sales or use
tax paid to this state measured by 6% of the price of a qualified
truck, a trailer designed to be drawn behind a qualified truck, or
parts affixed to either a qualified truck or a trailer designed to
be drawn behind a qualified truck, purchased, rented, leased, or
otherwise used in this state, and used in interstate commerce,
multiplied by the out-of-state mileage percentage.
(2) "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.
(3) "Out-of-state mileage 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 mileage percentage.
(4) "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.