Blank Michigan 1028 PDF Form

Blank Michigan 1028 PDF Form

The Michigan 1028 form is the Annual Property Report required for state-assessed railroads in Michigan. This report, mandated by Michigan Public Act 282 of 1905, must be filed by companies based on their annual gross receipts. Missing the filing deadline can result in substantial fines, making it crucial for companies to complete this form accurately and on time.

To ensure compliance, fill out the Michigan 1028 form by clicking the button below.

The Michigan 1028 form serves as a crucial annual property report specifically designed for state-assessed railroads, reflecting the requirements set forth by the Michigan Public Act 282 of 1905. This form is mandatory for companies with annual gross receipts exceeding $1,000,000, which must file by March 31. For those with receipts of $1,000,000 or less, the deadline is March 15. The form requires detailed information about the company's assets, including rolling stock, road property, and any changes in ownership or structure during the previous year. Failing to submit a complete report by the designated deadline can result in significant penalties, amounting to $500 for each day the report is late. Additionally, companies must designate an authorized contact person for correspondence related to the report, ensuring clear lines of communication with the tax commission. The form includes various schedules to capture specific financial details, such as the total cost of rolling stock, investments in road property, and railcar mileage, all of which contribute to the assessment of property values for tax purposes. Proper completion of this report not only fulfills a legal obligation but also plays a vital role in the financial landscape of rail operations within Michigan.

Document Sample

1028 (Rev. 11-11)

State of Michigan

State Tax Commission

ANNUAL PROPERTY REPORT

For Year Ended December 31, 2011

State Assessed Railroads

This report is issued under Michigan Public Act 282 of 1905, as amended. Filing of this report is mandatory. There can be only one authorized contact person for each company. Companies with annual gross receipts greater than $1,000,000 are required to file this report on or before March 31. Companies with annual gross receipts equal to or less than $1,000,000 are required to file this report on or before March 15. A company failing to file a complete report by the applicable due date shall be subject to a fine of $500 per day.

Instructions for completion and filing options are available on pages 9-12 of this report.

Company Name

 

 

Federal Tax ID Number

 

 

 

 

 

 

Company Address to which the tax bill should be sent

City

State

ZIP Code

 

 

 

 

 

Company Authorized Contact Person (to whom correspondence concerning this report should be addressed)

Company Web site

 

 

 

 

 

 

Contact Address

 

City

State

ZIP Code

 

 

 

 

 

Contact Telephone Number

Contact Fax Number

 

Contact E-mail Address

 

 

 

 

 

 

Notary

Printed name of President, Secretary, Superintendent or Chief Officer under whose direction this report was prepared.

By my signature below, I certify that the information (including any attachments) in this report is complete and correct to the best of my knowledge and belief.

Signature ________________________________________________Title __________________________________Date _________________________

Subscribed and sworn to before me this ____________________________ day of _____________________________________, _______________.

Signature of Notary Public

My Commission Expires

Printed Name of Notary Public

Acting in the County of

Has your company experienced any name changes, acquisitions, or sales during the calendar year immediately preceding the statutory due date of this report.

YES

If yes, provide the following information:

NO

Description of Change (merger, acquisition, sale)

Date of Change

Under what name did the taxpayer file last year?

Name of Company Sold

1

Schedule 1, Statement of Total Cost of Rolling Stock Owned or Leased by Year of Acquisition (Includes Locomotives, Freight Cars, Passenger Cars, Highway and Work Equipment)

 

 

 

 

 

 

 

 

TRUE

 

 

 

 

 

 

 

 

CASH

 

No. of

COSTS

 

 

 

REPORTABLE

 

VALUE

YEAR OF

Units

REPORTED

LOSSES

ADDITIONS

 

COSTS

 

(office

ACQUISITION

Reported

PRIOR

(office use

(office use

NO. OF

CURRENT

 

use

 

Prior Year

YEAR

only)

only)

UNITS

YEAR

MULTIPLIER

only)

 

 

(office use)

 

 

 

 

 

 

2011

 

 

 

 

 

 

0.8900

 

2010

 

 

 

 

 

 

0.7600

 

2009

 

 

 

 

 

 

0.6700

 

2008

 

 

 

 

 

 

0.6000

 

2007

 

 

 

 

 

 

0.5400

 

2006

 

 

 

 

 

 

0.4900

 

2005

 

 

 

 

 

 

0.4500

 

2004

 

 

 

 

 

 

0.4200

 

2003

 

 

 

 

 

 

0.3800

 

2002

 

 

 

 

 

 

0.3600

 

2001

 

 

 

 

 

 

0.3300

 

2000

 

 

 

 

 

 

0.3100

 

1999

 

 

 

 

 

 

0.2900

 

1998

 

 

 

 

 

 

0.2800

 

Prior

 

 

 

 

 

 

0.2300

 

TOTALS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 1 Total True Cash Value

Schedule 2, Investment in Road Property Used in Transportation Service with Additions and Retirements for the Year (Michigan Only)

Column A

Column B

Column C

Column D

Column E

Column F

Column G

Column H

Previous

Original Cost

Accumulated

Expenditures for

Depreciation

Plant Balance

Accumulated

Net Book Value

Year

of

Depreciation of

Additions During

of New Additions

at Year End

Depreciation

= F - G

Plant Balance

Retirements

Retirements at

the Calendar

During the

= A - B + D

at Year End

 

from last

Made During

Beginning of

Year

Calendar Year

 

 

 

Year’s

Calendar

Calendar Year

 

 

 

 

 

Column F

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If your prior year plant ending balance is not equivalent to the amount in Column A that was carried forward from last year’s report, please indicate the revised amount and provide an explanation.

Revised Column A: _________

Explanation:

_______

_

_

 

 

 

plus

Construction in Progress (CIP)

x .50 = Adjusted CIP

 

_________

 

 

(incurred cost to date)

equals

_________

Schedule 2 True Cash Value

_________

Note: Inventory is exempt from assessment. Inventory does not include personal property under lease or principally intended for lease or rental (operating), rather than sale. Property allowed a cost recovery allowance or depreciation under the Internal Revenue Code is not inventory. Motor vehicles registered with the Michigan Secretary of State on Tax Day (December 31st) are exempt. Non-registered motor vehicles and equipment attached to motor vehicles which is not used while the vehicle travels on the highway are assessable. Computer software, if the purchase was evidenced by a separate invoice amount and if the software is commonly sold separately, is exempt.

2

Schedule 3

A. Interest Paid on Debt From Railway Operations (National)

 

Last Four Year Results as Previously Reported

 

 

Balance at Close of

 

 

 

 

 

 

 

Calendar Year

 

 

Five Year Average

 

 

 

 

(office use only)

 

 

 

 

 

 

 

 

 

 

 

 

(December 31st)

 

 

 

 

 

 

 

 

 

 

 

(office use only)

 

 

year - 4

 

year - 3

year - 2

year - 1

 

 

 

 

 

 

 

 

-0-

 

-0-

-0-

-0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B. Total Net Operating from Railway Operations (National)

Last Four Year Results as Previously Reported

(office use only)

year - 4

year - 3

year - 2

year - 1

 

 

 

 

Balance at Close of

Calendar Year

(December 31st)

Five Year Average

(office use only)

Schedule 4, Statement of Allocation Factors

Note: "National" includes all North American Activity (U.S., Canada, and Mexico), "Michigan" only includes those items attributable to the State of Michigan.

 

Ar e y ou r op e r a t ion s e n t ir e ly w it h in t h e St a t e of M ich ig a n ?

 

 

 

Yes

_ _ _

 

No

_ _ _

 

 

 

 

 

I f Yes, y ou do not need t o pr ov ide t he follow ing in for m at ion .

 

 

 

I f No, please pr ov ide t he follow in g in for m at ion below ( Car Miles an d Rev en u es) .

 

 

Car Miles

 

 

 

 

National

Michigan

 

1.

Freight Car Miles (Loaded and Empty)

 

 

 

 

2.

All Other Car Miles

 

 

 

 

 

 

 

3.

Total Car Miles (1+2)

 

 

 

 

 

 

 

4.

Percentage Attributable to Michigan

 

 

 

 

Revenues (please enter full dollar amounts)

National

Michigan

 

1.

Freight Revenue

 

 

 

 

 

 

 

2.

All Other Revenue from Operation

 

 

 

 

3.

Total Operating Revenue (1+2)

 

 

 

 

4.

Percentage Attributable to Michigan

 

 

 

Schedule 5, Sales and Transfers of Car Marks

Did any sales or transfers of car marks occur during the calendar year immediately preceding the statutory due date of this report?

Yes

____

No

____

If Yes, describe any sales or transfers that occurred.

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

3

Schedule 6, Statement of Railcar Mileage Traveled Over Track Operated by your Company (itemize by Car Mark)

Car Mark

Mileage

Car Mark

Mileage

Car Mark

Mileage

Schedule 7, Real Property

Have there been any changes (additions or losses) to your Real Property in the calendar year immediately preceding the statutory filing date of this report?

Yes ____

No ____

If yes, please describe losses and/or additions in box below:

4

NOTE

All summary calculations will be completed AFTER the Assessment and Certification Division has reviewed and processed the information contained in this Annual Property Report. Once all processing is complete, you may view the summary calculations (worksheets) by requesting a personal identification number (PIN) and accessing your company's secure, online account. For additional information on how to request a PIN to access your account, please refer to the "How to file this report" section of the instructions.

Tentative values will be posted on or about May 15, and final values will be posted on or about June 15. Each state assessed company will receive a final tax bill by mail and any taxes due are payable on July 1.

5

2012

Application for Tax Credit for Maintenance and Improvement of Rights of Way

Section 13 of PA 282 of 1905, as amended allows credit for eligible expenses incurred in the State of Michigan by railroad companies for maintenance or improvement of rights of way, including those items, except depreciation, in the official maintenance-of-way and capital track accounts of the railroad company in this state during the calendar year immediately preceding the statutory due date of this report, but not to exceed the total liability for the tax under this act.

Eligibility Requirements

In order to be eligible for the tax credit for maintenance and improvement of rights of way under MCL 207.13(2), the railroad companies must fulfill the statutory requirements detailed in Section 13 of PA 282 of 1905 (MCL 207.13(3)). In addition to providing the requested summary information on this application for credit, each company must complete and file [3 copies of] the report described in Section 13 with the State Tax Commission that includes, but is not limited to, detailed information of the nature and location of expenses. A summary of the eligibility and reporting requirements are listed in the attached instructions on pages 11-13.

Eligible and Non-Eligible Expenses

Examples of Eligible and Non-Eligible Expenses are listed in the attached instructions on pages 11-13.

Maximum Credit Available

The maintenance of way expense credits are not refundable or deferrable. Expenses in excess of a company's property tax liability are not eligible for credit against prior or subsequent years' liability.

***NOTE*** Filing of this credit application does not relieve the company of the statutory requirement of filing [3 copies] of the detailed expense report described in Section 13(3). You are still required to provide that to the State Tax Commission at the following address:

 

 

Mailing Address:

For Overnight Package Delivery:

Michigan Department of Treasury

Michigan Department of Treasury

Michigan State Tax Commission

Michigan State Tax Commission

P O Box 30471

Austin Building

Lansing, MI 48909-7971

430 W. Allegan Street

 

Lansing, MI 48922

 

 

Company Name

Eligibilty

Has your company incurred eligible expenses, and submitted three (3) copies of the required expense report as described above?

Yes ___

No ___

If Yes, please enter total eligible expenses below.

If No, you are NOT ELIGIBLE for credit. DO NOT SUBMIT EXPENSES.

Total Eligible Expenses for Maintenance and Improvement of Rights of Way in Michigan which you have reported in the above described report.

$

___________________________

6

2012

Application for Tax Credit for Maintenance and Improvement

of Qualified Rolling Stock in Michigan

Section 13a of Public Act 282 of 1905, as amended, allows a credit for eligible expenses incurred in the State of Michigan by railroad and car companies for maintenance or improvement of eligible companies' qualified rolling stock.

Eligible Company is defined as:

Railroad companies, union station and depot companies, sleeping car companies, express companies, car loaning companies, stock car companies, refrigerator car companies, fast freight line companies, and all other companies owning, leasing, running, or operating any freight, stock, refrigerator, or any other cars not the exclusive property of a railroad company paying taxes upon its rolling stock under this act, over or upon the line or lines of any railroad in this state.

Eligible Expenses are expenses for repairs and maintenance that satisfy all of the following criteria:

1.Eligible expenses must have been incurred during the calendar year immediately preceding the statutory due date of this report.

2.Eligible expenses must have been incurred in the State of Michigan.

3.Eligible expenses must be made for the maintenance or improvement of rolling stock which are subject to taxation by the State under PA 282 of 1905 as amended.

Examples of Eligible and Non-Eligible Expenses are listed in the attached instructions.

Maximum Credit Available:

This credit is not refundable or deferrable. Expenses in excess of a company's property tax liability are not eligible for credit against prior or subsequent years' liability.

Company Name

Eligibility

Are you an "eligible company" which has incurred expenses that satisfy ALL of the requirements listed above?

Yes ___

No ___

If Yes, please enter total eligible expenses below.

If No, you are NOT ELIGIBLE for credit. DO NOT SUBMIT EXPENSES.

Total Eligible Expenses for Maintenance and Improvement of Qualified Rolling Stock in Michigan (include labor, material, overhead, and payments to others for work done).

$

7

Instructions for Completion of the Annual Report by State Assessed Railroads

Who must file this report? (MCL 207.6)

All railroad companies, union station and depot companies, and switching and terminal companies operating in the State of Michigan pursuant to Section 6 of PA 282 of 1905.

When is this report due? (MCL 207.6)

If your annual gross receipts exceed $1,000,000, this report is due by March 31st.

If your annual gross receipts do not exceed $1,000,000, this report is due by March 15th.

How to submit this report:

This report may be submitted electronically or mailed in paper format. If you wish to submit this form electronically, please visit the following web site at www.michigan.gov/stateassessedproperty or you may call (517) 241-4338 for more information on how to file electronically. Any company which desires to take advantage of the new online process, will be able to request an individual secure Personal Identification Number (PIN) by filling out Treasury form 4435. Once the Personal Identification Number (PIN) is issued, the company can use that PIN to access the site for submitting their Annual Property Report and any applicable credit applications online. The company can also use the PIN to view calculation worksheets and tax notices, once all the processing is complete. The secure PIN protects the account, and restricts access so that only the person which the company authorizes can access or view the information submitted to the state.

If submitting this form by mail, please complete and sign the declaration on page one and send the entire completed form to:

Mailing Address:

For Overnight Package Delivery:

Michigan Department of Treasury

Michigan Department of Treasury

Michigan State Tax Commission

Michigan State Tax Commission

P O Box 30471

Austin Building

Lansing, MI 48909-7971

430 W. Allegan Street

 

Lansing, MI 48922

What property is subject to taxation? (MCL 207.5)

The term "property having a situs in this state", includes all property, real and personal, of the persons, corporations, companies, co-partnerships and associations enumerated in the act, which is owned, used and occupied by them within the limits of this state, and also such proportion of their rolling stock, cars, and other property as is used partly within and partly without this state as provided by PA 282 of 1905.

Schedule 1

List all rolling stock which is owned or leased by you. List the number of units reported as well as reportable current year costs. Property must be listed at its full original cost new, in the year that it was new. If the original/new acquisition cost of a railcar that was initially purchased by another company can be obtained, that information must be reported. If the original/new acquisition cost of a railcar that was initially purchased by another company cannot be obtained, then the original/new acquisition cost shall be equal to the subsequent price paid by the reporting company upon acquiring the used railcar. All betterments, including capital improvements, mandated betterments, capital upgrades, safety features, and mandated repairs should be reported in the year the expenditure is booked as a fixed asset.

The "Costs Reported Prior Year", "Losses", "Additions", and "True Cash Value" columns are for Assessment and Certification Division (ACD) use only. To view the values and calculations entered by the Assessment and Certification Division, please fill out form 4435 to obtain a Personal Identification Number (PIN) for access to the online reporting form available at www.michigan.gov/taxes (please see "How to submit this report" section above for specific website location). Tentative Values will be electronically posted on or about May 15th, and Final Values will be electronically posted on or about June 15th.

Schedule 2

This is to be submitted by all railroads and calls for summary data relating to investment for the company(s) properties in Michigan. Investment in account 732 (improvements on leased property) shall also be reported on Schedule 2. The "Previous Year Plant Balance" column is for Assessment and Certification Division office use only. List any retirements that have occurred during the calendar year immediately preceding the statutory due date of this report. List the accumulated depreciation for those retirements in the column designated.

8

List any expenditures for additions that occurred during the calendar year immediately preceding the statutory due date of this report. Exclude locally-assessed property, erosion control property, and property funded by the Michigan Department of Transportation. List the accumulated first year depreciation for those additions in the column designated. Inventory is exempt from assessment. Inventory does not include personal property under lease or principally intended for lease or rental, rather than sale. Property allowed a cost recovery allowance or depreciation under the Internal Revenue Code is not inventory. Non-registered motor vehicles and equipment attached to motor vehicles which is not used while the vehicle travels on the highway are assessable. Computer software, if the purchase was evidenced by a separate invoice amount and if the software is commonly sold separately, is exempt.

In the Accumulated Depreciation column, list the accumulated depreciation for assets in place at year end.

List the balance of costs at calendar year end (December 31st). The "True Cash Value" column is for Assessment and Certification division office use only.

List the current year construction in progress. Report all costs that have been incurred including overheads, installation costs incurred, sales tax and freight. Reporting of costs should be separated by project. Property which is placed in service on or before December 31st is considered placed in service that year and should be entirely reported on the line which represents the year that it was considered placed in service. Similarly, the cost of all assets must be reported as acquired in the year that they were placed in service, rather than the year of purchase, if those years differ. The adjusted construction in progress and the Schedule 2 True Cash Value will be calculated by the Assessment and Certification Division.

Schedule 3

A.Enter the Total Interest Paid to service debt to finance railway operations. Interest must be for short term and long term debt. The columns provide for the amounts from the last four years. The phase-in of the interest in the valuation calculation based on the income approach, began with the 2011 tax year.

B.Enter the Total Net Operating Income from Railway Operations. The columns provide for the amounts reported from the last four years.

Schedule 4

If your company's property (whether owned or leased) is used entirely within the State of Michigan, you are not required to provide allocation information. If your company's property (whether owned or leased) is used partly within and partly without the State of Michigan, provide the allocation information based on the system as a whole, and the portion attributable to Michigan. For further details on reporting specifications, consult the Uniform System of Accounts for Railroad Companies. (49 CFR 1201 et.seq.)

Schedule 5

Please check the appropriate box indicating whether any sales or transfers of car marks have occurred in the calendar year immediately preceding the statutory due date of this report. If you select yes, please describe any sales and transfers of car marks that occurred.

Schedule 6

Enter the total annual mileage traveled during the calendar year immediately preceding the statutory due date of this report, over track that you operate (whether owned or leased). Please provide the mileage by individual car mark.

Schedule 7

Indicate whether there have been any changes to your real property as compared to the prior year’s information and provide information about any changes in the reporting box.

Losses to Real Property

Losses mean the decrease in value which has not been reflected in the assessment unit’s immediately preceding year’s assessment roll. Losses include removal or destruction of real property, newly exempt property, or newly contaminated property.

Additions to Real Property

Additions mean an increase in value which has not been reflected on the assessment unit’s immediately preceding year’s assessment roll. Additions include omitted property, new or replacement construction, and increases in value due to new public services and/or contamination remediation.

9

Instructions for Tax Credit for Maintenance and Improvement of Right of Way

Sec. 13 of PA 282 of 1905, as amended, (more specifically MCL 207.13(2) and MCL 207.13a(5)(b)(ii)), allows credit against the tax imposed, for eligible expenses incurred in the State of Michigan by railroad companies for maintenance or improvement of rights of way, including those items, except depreciation, in the official maintenance-of-way and capital track accounts of the railroad company in this state during the calendar year immediately preceding the statutory due date of this report, but not to exceed the total liability for the tax under this act.

Additional Statutory Requirements for Eligibility (MCL 207.13(2) - (5))

In order to be eligible for the tax credit for maintenance and improvement of rights of way, the railroad companies must complete and file [3 COPIES OF] an annual report with the State Tax Commission that includes the following:

1.Detailed data of right of way work conducted in this state during the past calendar year separated by costs of labor and materials on each project and itemized in the following categories:

(a)Miles of track laid

(b)Tons of new ballast installed

(c)Number of ties installed

(d)Miles of track surfaced

(e)Signals installed

(f)Under drainage work done

2.The number of notices of violation from the railway inspectors by railroad section,

3.A detailed account of the location and nature of the work defined by railroad section or mile posts surrounding the work area plus the county, city, or township in which the work was performed,

4. Demonstration that the highest priority of expenditures for the maintenance and improvement of rights of way has been given to rail lines that handle hazardous materials, especially those that are located in urban or residential areas, and detailed data on the tonnages of hazardous materials handled in relation to tonnages of other traffic handled over the rail line for which a tax credit is being applied.

In addition, the company must grant to another railroad company, upon application by the latter, trackage rights over its line for trains, providing that the train operations do not interfere with the movement of Michigan freight using the same trackage, if operations can be accomplished safely in the opinion of the grantor and if trackage arrangements and train operations are approved by the interstate commerce commission.

***NOTE*** Filing of the credit application does not relieve you of the requirement of filing 3 copies of the above defined report with the State Tax Commission. You are still required to provide the above information in a separate report.

What expenses are eligible for credit against the tax levied? MCL 207.13(2)

Eligible Expenses:

1.Eligible expenses must have been incurred during the calendar year immediately preceding the statutory due date of this report.

2.Eligible expenses must have been incurred in the State of Michigan.

3.Examples of Eligible Capital Expenses for Road and Equipment include, but are not limited to items from the following categories:

(1)

Engineering exp. directly related to R & E Property

(23)

Wharves and Docks

(3)

Other Right-of-Way Expenses

(24)

Coal and Ore Wharves

(4)

Grading

(25)

TOFC/COFC Terminals

(5)

Tunnels and Subways

(26)

Communication Systems

(6)

Bridges, trestles, and culverts

(27)

Signals and Interlockers

(7)

Elevated Structures

(37)

Roadway Machines

(8, 9, 10, 11) Ties, Rails and other Track Material

(38)

Roadway small tools

(12) Track Laying and Surfacing

(39)

Public Improvements - Construction

(13) Fences, Snowsheds, and Signs

(43)

Other Expenses - Road

(17) Roadway Buildings (portion housing MOW equipment and engineering)

10

File Specifics

Fact Name Details
Governing Law This form is issued under Michigan Public Act 282 of 1905, as amended.
Filing Requirement Filing this report is mandatory for companies assessed by the state.
Due Dates Companies with gross receipts over $1,000,000 must file by March 31; those with $1,000,000 or less by March 15.
Daily Fines A fine of $500 per day applies for incomplete filings past the due date.
Authorized Contact Each company may have only one authorized contact person for correspondence.
Notary Requirement The report must be certified by a notary public, confirming the accuracy of the information.
Exemptions Inventory is exempt from assessment, excluding certain leased personal property and registered motor vehicles.

How to Use Michigan 1028

Completing the Michigan 1028 form is an important step for companies that fall under its requirements. This form must be filled out accurately and submitted by the specified deadlines to avoid penalties. Once the form is completed and submitted, the information will be processed by the Assessment and Certification Division, and you will receive a final tax bill by mail.

  1. Obtain the Form: Download the Michigan 1028 form from the State Tax Commission website or request a physical copy if needed.
  2. Company Information: Fill in your company name, Federal Tax ID number, and the address where the tax bill should be sent. Make sure to include the city, state, and ZIP code.
  3. Authorized Contact: Provide the name and contact details of the authorized person for correspondence regarding the report, including their address, telephone number, fax number, and email address.
  4. Notary Section: Ensure that the report is signed by the President, Secretary, Superintendent, or Chief Officer. Include their printed name, title, and the date of signing.
  5. Company Changes: Indicate if there have been any name changes, acquisitions, or sales in the past year. If applicable, provide details about the changes, including the type and date of change.
  6. Schedule 1: Complete the Statement of Total Cost of Rolling Stock by reporting the number of units, true cash value, and costs associated with each year of acquisition.
  7. Schedule 2: Fill out the Investment in Road Property section, including original costs, accumulated depreciation, and net book value for the year.
  8. Schedule 3: Report interest paid on debt and total net operating results from railway operations over the last four years.
  9. Schedule 4: If your operations are not entirely within Michigan, provide details on car miles and revenues attributable to Michigan.
  10. Schedule 5: Indicate if there were any sales or transfers of car marks during the year and describe them if applicable.
  11. Schedule 6: Itemize the railcar mileage traveled over the track operated by your company by car mark.
  12. Schedule 7: Report any changes to your real property, including additions or losses during the year.
  13. Final Review: Double-check all sections for accuracy and completeness before submission.
  14. Submission: Submit the completed form by the appropriate deadline—March 31 for companies with gross receipts over $1,000,000 and March 15 for those with receipts of $1,000,000 or less.

Your Questions, Answered

What is the Michigan 1028 form?

The Michigan 1028 form is the Annual Property Report required for state-assessed railroads. This report must be filed by companies operating in Michigan and is mandated under Michigan Public Act 282 of 1905. It collects essential information about a company's property, including its rolling stock and real property, for tax assessment purposes.

Who is required to file the Michigan 1028 form?

All companies that are state-assessed railroads in Michigan must file this form. Specifically, companies with annual gross receipts greater than $1,000,000 must submit their report by March 31, while those with receipts equal to or less than $1,000,000 must file by March 15. Failing to file on time can result in significant fines.

What are the penalties for not filing the form on time?

If a company fails to submit a complete Michigan 1028 form by the due date, it faces a fine of $500 for each day the report is late. This penalty underscores the importance of timely compliance with state regulations.

What information is required on the form?

The form requires various details, including:

  • Company name and Federal Tax ID number
  • Company address for tax billing
  • Authorized contact person’s information
  • Details about any name changes, acquisitions, or sales
  • Statements of total costs of rolling stock and real property

Accurate and complete information is crucial for proper assessment.

How can a company file the Michigan 1028 form?

Filing options are detailed in the instructions provided within the report. Companies can typically file electronically or via mail. It is advisable to refer to pages 9-12 of the report for specific instructions and options.

What happens after the form is filed?

Once the Michigan 1028 form is submitted, the Assessment and Certification Division will review the information. Companies can request a personal identification number (PIN) to access their secure online account and view summary calculations after processing is complete. Tentative values will be posted around May 15, and final values by June 15.

What if there are changes in real property during the year?

Companies must report any additions or losses to their real property on the form. This includes changes that occurred in the calendar year preceding the filing date. Accurate reporting of these changes is essential for the correct assessment of property taxes.

Yes, certain types of property are exempt from assessment. For example, inventory is generally exempt, as are motor vehicles registered with the Michigan Secretary of State on Tax Day (December 31). Non-registered vehicles and equipment attached to vehicles not used on highways are assessable. Additionally, specific computer software may also be exempt if purchased separately.

Who must sign the Michigan 1028 form?

The form must be signed by an authorized individual, typically the President, Secretary, Superintendent, or Chief Officer of the company. This signature certifies that the information provided is complete and correct to the best of their knowledge.

Common mistakes

  1. Missing Deadlines: One common mistake is failing to submit the Michigan 1028 form by the required deadlines. Companies with gross receipts over $1,000,000 must file by March 31, while those under this threshold must submit by March 15.

  2. Incorrect Contact Information: Providing inaccurate or incomplete contact details can lead to communication issues. Ensure that the authorized contact person's name, address, phone number, and email are all correct.

  3. Notary Requirements: Some filers overlook the need for a notary signature. The form must be signed and notarized by an authorized official, which is crucial for validation.

  4. Incomplete Financial Information: Failing to accurately report financial data, such as the total cost of rolling stock or investment in road property, can lead to penalties. Double-check all numbers for accuracy.

  5. Ignoring Changes in Company Status: If there were any name changes, acquisitions, or sales, this information must be reported. Not disclosing such changes can result in complications.

  6. Misunderstanding Inventory Exemptions: Many filers mistakenly include inventory that is exempt from assessment. Understanding what qualifies as inventory is essential to avoid errors.

  7. Inaccurate Reporting of Car Marks: When detailing sales or transfers of car marks, incomplete descriptions can create confusion. Provide thorough explanations of any transactions.

  8. Omitting Real Property Changes: If there have been changes to real property, such as additions or losses, these must be documented. Neglecting this can lead to discrepancies in assessments.

  9. Failure to Review Prior Year Data: Not comparing current year data with previous reports can lead to inconsistencies. Ensure that prior year figures are accurately reflected in the current filing.

  10. Neglecting to Request a PIN: After submission, filers often forget to request a personal identification number (PIN) to access their account online for summary calculations. This step is crucial for tracking and managing the report.

Documents used along the form

The Michigan 1028 form is an essential document for companies operating railroads in Michigan, serving as the Annual Property Report. Alongside this form, several other documents are often required or beneficial for compliance and operational purposes. Below is a list of related forms and documents that you may encounter.

  • Federal Tax ID Application (Form SS-4): This form is used to apply for an Employer Identification Number (EIN) from the IRS, which is necessary for tax reporting and identification purposes.
  • Michigan Corporate Income Tax (CIT) Form: This document reports the income of corporations operating in Michigan and is essential for state tax compliance.
  • Annual Financial Statements: These statements provide a comprehensive overview of a company's financial performance, including balance sheets, income statements, and cash flow statements, which may be required for auditing purposes.
  • Property Tax Exemption Application: If applicable, this form is used to apply for exemptions on certain properties owned by the company, potentially reducing tax liabilities.
  • Business License Application: Depending on the nature of operations, a business license may be required to legally operate within the state or municipality.
  • Railroad Safety Compliance Documentation: This documentation ensures that the company adheres to safety regulations set forth by federal and state authorities, which is critical for operational integrity.
  • Environmental Impact Assessment: If applicable, this assessment evaluates the potential environmental effects of the company’s operations and is often necessary for compliance with state and federal regulations.
  • Insurance Certificates: Proof of insurance coverage, such as liability and property insurance, is often required to protect against potential claims and losses.
  • Notary Acknowledgment Form: This form may be needed to certify signatures on various documents, ensuring their authenticity and legal standing.

Understanding these forms and documents is vital for maintaining compliance and ensuring smooth operations within the railroad industry in Michigan. Each document plays a specific role in the overall regulatory framework, and being well-prepared can help avoid potential fines and complications.

Similar forms

The Michigan 1028 form shares similarities with the IRS Form 1065, which is used for partnership tax returns. Both documents require detailed financial information and are mandatory for certain entities. Like the Michigan 1028, the IRS Form 1065 necessitates the identification of the business and its authorized contact person. Each form must be filed by a specific deadline, and failure to comply can result in penalties. The focus on reporting income and expenses is a common thread, emphasizing the importance of accurate financial disclosures to tax authorities.

Another comparable document is the IRS Form 1120, which corporations use to report their income, gains, losses, deductions, and credits. Both forms require the disclosure of financial data, including revenue and expenses. Similar to the Michigan 1028, the IRS Form 1120 mandates that a designated individual be responsible for the accuracy of the information submitted. Timely filing is crucial for both forms, as late submissions can incur financial penalties, reinforcing the importance of compliance for business operations.

The Michigan 1028 form also resembles the state-level property tax return forms, such as the New York State Form RP-425. Both documents require property owners to report property values and assess potential taxes owed. They include sections for detailing property characteristics and any changes in ownership or valuation. Just as the Michigan form enforces deadlines for submission, state property tax forms have specific due dates, ensuring that property tax assessments are conducted in a timely manner.

Additionally, the Michigan 1028 form is akin to the California Form 571-L, which is an annual personal property statement. Both documents necessitate the reporting of property owned or leased, along with its value. They require the identification of a contact person for correspondence. Similar penalties for late filing exist, emphasizing the shared objective of ensuring accurate reporting of property assets for taxation purposes.

The 1028 form is also similar to the IRS Form 990, which tax-exempt organizations file to report their financial information. Both forms require comprehensive financial disclosures, including revenue and expenses. They emphasize transparency and accountability, as the information provided is crucial for assessing compliance with tax regulations. Each document mandates the identification of a responsible individual, reinforcing the importance of accurate reporting in maintaining the integrity of the organization.

Another related document is the Michigan Corporate Income Tax (CIT) form, which corporations must file to report their income and calculate taxes owed. Like the Michigan 1028, the CIT form requires detailed financial reporting and has strict deadlines for submission. Both documents serve to inform the state of a company's financial status, ensuring that businesses contribute appropriately to state revenues. Compliance with filing requirements is critical for avoiding penalties associated with late submissions.

The Michigan 1028 form also parallels the federal Form 2290, which is used to report heavy vehicle use tax. Both forms necessitate detailed information about the assets owned, including their value and usage. They require the designation of a responsible contact person and have specific filing deadlines. The focus on accurate reporting of vehicle and property information is a shared priority, ensuring that businesses meet their tax obligations effectively.

Lastly, the Michigan 1028 form is similar to the IRS Form 941, which employers use to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. Both documents require timely submission and accurate reporting of financial information. They emphasize the need for a designated contact person responsible for the information provided. The consequences of late filing or inaccuracies in reporting are significant for both forms, highlighting the importance of diligent compliance in tax matters.

Dos and Don'ts

Filling out the Michigan 1028 form is an important task that requires careful attention to detail. Here are seven things you should and shouldn't do when completing this form:

  • Do ensure that you have the correct company name and Federal Tax ID Number before starting the form.
  • Don't forget to check the filing deadlines. Companies with gross receipts over $1,000,000 must file by March 31, while those below this threshold must file by March 15.
  • Do provide accurate information regarding any name changes, acquisitions, or sales that occurred in the previous year.
  • Don't submit an incomplete report. Missing information can lead to fines of $500 per day.
  • Do designate a single authorized contact person for correspondence related to the report.
  • Don't overlook the notary section. The report must be signed and notarized to be considered valid.
  • Do review the instructions provided in the report for any specific requirements related to your company's operations.

Misconceptions

Understanding the Michigan 1028 form can be challenging, and several misconceptions often arise. Here are five common misunderstandings about this important document:

  • Filing is optional for all companies. Contrary to this belief, filing the Michigan 1028 form is mandatory for companies meeting specific criteria. Companies with annual gross receipts greater than $1,000,000 must file by March 31, while those with receipts equal to or less than this amount must submit by March 15.
  • Only large companies need to file. While larger companies are required to file by a later date, any company that meets the gross receipts threshold must complete the form. This includes smaller companies that may think they are exempt.
  • Late filing incurs a one-time fine. Many believe that the penalty for late filing is a single fine. However, companies that fail to submit a complete report by the due date face a fine of $500 for each day the report is late, which can add up quickly.
  • All property is exempt from assessment. There is a misconception that all types of property are exempt from assessment under the Michigan 1028 form. In reality, certain assets, such as non-registered motor vehicles and specific equipment, are assessable, while inventory and registered motor vehicles on Tax Day are exempt.
  • Changes in company structure do not need to be reported. Some companies think that name changes, acquisitions, or sales are irrelevant to the filing process. However, these changes must be disclosed in the report, ensuring that the state has accurate and current information regarding the company.

By addressing these misconceptions, companies can better navigate the requirements of the Michigan 1028 form and avoid potential penalties.

Key takeaways

  • Filing Requirement: The Michigan 1028 form must be filed by companies with annual gross receipts greater than $1,000,000 by March 31 and those with receipts of $1,000,000 or less by March 15.
  • Contact Information: Only one authorized contact person is allowed per company for correspondence related to the report.
  • Late Filing Penalty: A fine of $500 per day applies to companies that fail to file a complete report by the due date.
  • Information Verification: The report must be certified by the signature of the President, Secretary, Superintendent, or Chief Officer, confirming the accuracy of the information provided.
  • Notary Requirement: The report must be notarized, indicating that the information has been sworn to before a notary public.
  • Property Assessment: Inventory is exempt from assessment, but motor vehicles not registered with the Michigan Secretary of State are assessable.
  • True Cash Value: Companies must report the true cash value of rolling stock and road property, including any additions or retirements for the year.
  • Sales and Transfers: Companies must disclose any sales or transfers of car marks that occurred during the calendar year preceding the filing date.
  • Access to Summary Calculations: After processing, companies can access summary calculations through a secure online account using a personal identification number (PIN).