Free Michigan 1028 Template Prepare Document Here

Free Michigan 1028 Template

The Michigan 1028 form is a critical document for state-assessed railroads, mandated by the Michigan Public Act 282 of 1905, as amended. This annual property report, compulsory for all applicable entities, details a company’s assets, income, and changes from the previous fiscal year, ensuring accurate tax assessments and compliance with state regulations. To streamline your filing process and avoid potential fines of $500 per day for late submission, click the button below.

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The Michigan 1028 form, as articulated within the State Tax Commission's directive under Public Act 282 of 1905, as amended, serves a critical mandate for state-assessed railroads. This annual property report, crucial for the fiscal year ending December 31, 2011, outlines a structured protocol for reporting, with stringent deadlines based on the company's annual gross receipts. Companies surpassing the $1,000,000 threshold in annual gross receipts are obligated to submit this report by March 31, while those under this financial marker have a deadline of March 15. A failure to comply or to submit a complete report incurs a daily penalty of $500, emphasizing the urgency and accuracy required in this process. The form also provides for the detailed documentation of changes such as mergers, acquisitions, or sales, ensuring a comprehensive record of the company's yearly operational and financial activities. Additionally, it delves into specifics like the statement of total cost of rolling stock owned or leased by the year of acquisition and investment in road property, among others. This requisite document not only facilitates a standardized reporting mechanism but also serves as a testament to a company’s compliance and operational integrity in the face of state mandates. Furthermore, it contemplates provisions for adjustments in case of property changes—real or personal—and offers a segmented view on revenue and operational data, underscoring its importance in maintaining a transparent and regulated railroad industry in Michigan.

Sample - Michigan 1028 Form

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 Details

Fact Name Description
Governing Law Michigan Public Act 282 of 1905, as amended.
Form Purpose ANNUAL PROPERTY REPORT for State Assessed Railroads.
Filing Requirement Mandatory for companies meeting criteria.
Due Dates for Companies over $1,000,000 On or before March 31.
Due Dates for Companies $1,000,000 and under On or before March 15.
Late Filing Penalty $500 per day for filing after the due date.
Authorized Contact Only one authorized contact person per company.
Report Year For Year Ended December 31, 2011.
Signature Requirement Report must be signed by President, Secretary, Superintendent, or Chief Officer.
Notarization Report must be subscribed and sworn to before a Notary Public.
Company Changes Inquiry Inquires about any name changes, acquisitions, or sales during the year.

Michigan 1028 - Usage Steps

Filing the Michigan 1028 form is a mandatory requirement for state-assessed railroads operating within Michigan. This form enables railroads to report their annual property values to the State Tax Commission. Timely submission is crucial as companies face significant fines for delayed reports. For companies with annual gross receipts over $1,000,000, the deadline is March 31. For those with receipts of $1,000,000 or less, the deadline is March 15. Follow the instructions carefully to ensure complete and accurate reporting.

  1. Start with the company's basic information. Fill in the Company Name, Federal Tax ID Number, and the Company Address where you wish the tax bill to be sent, including city, state, and ZIP code.
  2. Enter the Company Authorized Contact Person's name. This person will receive all correspondence related to the report. Add their contact details including address, telephone number, fax number, and email address.
  3. In the section requiring the Signature of a company official, have the president, secretary, superintendent, or chief officer under whose direction the report was prepared, sign and date the form.
  4. A notary public must witness the signature. Fill in the date and provide the notary's signature, printed name, commission expiration date, and the county in which they are acting. This formalizes the submission.
  5. Answer the question regarding any name changes, acquisitions, or sales during the calendar year immediately preceding the statutory due date of this report. Provide details if applicable.
  6. Complete Schedule 1, detailing the Statement of Total Cost of Rolling Stock Owned or Leased. Insert acquisition year, number of units, costs, reportable value losses, additions, and the total true cash value.
  7. Fill in Schedule 2, Investment in Road Property Used in Transportation Service. Provide information on original cost, depreciation, additions, retirements, and net book value.
  8. Report on Schedule 3 A & B, detailing interest paid on debt from railway operations and total net operating from railway operations, including the last four years' results and five-year averages.
  9. In Schedule 4, if operations are entirely within Michigan, check "Yes." If not, provide car miles and revenues, both national and for Michigan.
  10. For Schedule 5, indicate whether any sales or transfers of car marks occurred in the preceding year, and provide details if necessary.
  11. Itemize railcar mileage traveled over track operated by your company in Schedule 6, detailing each car mark and mileage.
  12. Answer whether there have been any changes to Real Property in the last calendar year in Schedule 7 and describe losses or additions.

After submitting the form, processing begins. The Assessment and Certification Division of the Michigan State Tax Commission will review the information. Once processed, companies can view summary calculations and receive final tax values through a secure, online account after requesting a personal identification number (PIN). Keep an eye out for tentative values around May 15 and final values by June 15. A final tax bill will be mailed, with taxes due on July 1.

Learn More on This Form

What is the Michigan 1028 form?

The Michigan 1028 form is an Annual Property Report specifically designed for state assessed railroads. It collects information on various aspects like property, expenses, revenue, and changes in the company structure. This report plays a crucial role in the determination of tax responsibilities for railroads operating within Michigan.

Who needs to file the Michigan 1028 form, and when is it due?

Any railroad company operating in the State of Michigan with annual gross receipts over $1,000,000 must file the Michigan 1028 form by March 31. Companies with annual gross receipts of $1,000,000 or less have a deadline of March 15. It's mandatory for every applicable company to submit this report annually.

What happens if a company fails to file the form by the deadline?

A company that does not file a complete report by the designated due date will incur a penalty. The fine is significant, amounting to $500 per day until the report is fully submitted. This punitive measure emphasizes the importance of timely and complete submissions.

Are there specific instructions on how to complete the form?

Yes, detailed instructions for completing the Michigan 1028 form are provided within the form document itself, specifically from pages 9 to 12. These instructions offer guidance on how to accurately fill out the form and outline the filing options available to companies.

What should a company do if it has undergone name changes, acquisitions, or sales?

If a company has experienced any name changes, acquisitions, or sales during the year, it must report these changes in the form. The specific section dedicated to this information requires a description of the change, the date it occurred, the name under which the taxpayer filed last year, and the name of the company sold, if applicable.

How are property and equipment reported on the form?

Property and equipment are reported through several schedules within the form, such as rolling stock, investment in road property, and real property changes. These sections require detailed information on acquisition, valuation, depreciation, and any additions or retirements of property within the reporting period.

What if a company needs to access the completed summary calculations?

After the Assessment and Certification Division reviews and processes the information from the Annual Property Report, summary calculations become available. Companies can view these calculations by requesting a personal identification number (PIN) and accessing their secure, online account. Tentative and final values are subsequently posted, facilitating access to detailed assessment outcomes.

Common mistakes

Filling out legal forms can feel like navigating a maze – one wrong turn, and you might find yourself at a dead end. The Michigan 1028 form, essential for state-assessed railroads reporting annual property, is no exception. With its complex instructions and myriad details, it's easy to stumble into common pitfalls. Let's walk through some of these to ensure your journey is smooth.

  1. Missing the filing deadline. Depending on your company's annual gross receipts, your due date changes. Companies often err by overlooking this distinction, leading to hefty late fines.
  2. Incorrect authorized contact person. There can only be one authorized contact for each company. A mistake here can misdirect crucial correspondence, hampering timely communications.
  3. Inaccurate financial information. Misreporting figures such as the true cash value or annual gross receipts not only jeopardizes the form's integrity but can also trigger audits or penalties.
  4. Failure to report changes. If your company has undergone any name changes, acquisitions, or sales, failing to report these changes can cause confusion and inaccuracies in your tax obligations.
  5. Overlooking the notary requirement. The form needs to be notarized before submission – a step frequently forgotten or left until the last minute, risking timely filing.
  6. Incorrect or incomplete itemization. Whether it's schedule 1's statement of total cost of rolling stock or schedule 7's real property changes, inaccuracies or omissions can distort your company's financial portrayal.
  7. Misunderstanding exemptions. Certain inventory items and computer software may be exempt from assessment. Misclassifying these items can lead to a misrepresentation of taxable assets.
  8. Misreported railcar mileage. Schedule 6 demands precise mileage traveled over track operated by your company. Approximations or errors here can significantly affect your report's accuracy.

Each of these mistakes can be avoided with careful reading, thorough preparation, and attention to detail. Beware of underestimating the depth of information required and the precision of the reporting. It's not just about filling in the blanks; it's about providing a precise, accurate snapshot of your company's position. And remember, when in doubt, seeking guidance from a tax professional or legal advisor isn't just wise—it could save you from costly errors and fines. After all, when it comes to tax reporting, it's better to tread carefully than to rush through and risk retracing your steps.

Documents used along the form

Filing the Michigan 1028 form, a critical document for state-assessed railroads, represents just the beginning of the paperwork required for comprehensive compliance and operational clarity in the state's regulatory environment. Alongside this pivotal report, companies frequently need to manage and submit several other forms and documents essential for tax reporting, legal compliance, business operation, and asset management. Understanding these forms and their roles can significantly streamline the process for businesses operating within Michigan.

  • Form 632 - Annual Return for Sales, Use and Withholding Taxes: This form is crucial for businesses to report sales, use, and withholding taxes annually. It complements the Michigan 1028 form by dealing with different tax activities.
  • Form 5081 - Sales, Use, and Withholding Taxes Annual Return: Similar to Form 632, this document is essential for businesses to report their sales, use, and withholding taxes, but it is specifically designed for a different filing period or taxpayer category.
  • Articles of Incorporation: For any company, especially those required to file the Michigan 1028 form, having their Articles of Incorporation up to date is crucial. This document establishes a company's legal existence.
  • Business Licenses and Permits: Depending on the type of business and where it operates, various licenses and permits may be required. These documents are necessary for legal operational compliance.
  • Commercial Property Lease Agreements: For businesses that lease the premises they operate from, lease agreements document the terms, conditions, and payments agreed upon by the lessor and lessee.
  • Personal Property Tax Statements: These statements report the value of a business's personal property and are essential for appropriate property tax assessment.
  • Employee Identification Number (EIN) Documentation: Issued by the IRS, the EIN documentation is required for tax purposes and hiring employees, serving as the business's federal taxpayer identification number.
  • Uniform Commercial Code (UCC) Filings: For companies that finance inventory or have certain types of leasing arrangements, UCC filings secure interests in collateral and are integral to the lien process.
  • Environmental Compliance Documents: Depending on the nature of the business, various environmental permits and records might be necessary to comply with state and federal regulations.
  • Financial Statements: Comprehensive financial reports, including balance sheets, income statements, and cash flow statements, provide insights into a company's financial health and complement the Michigan 1028 form in presenting a full picture of the business's economic status.

Each document plays a specific role in complementing the Michigan 1028 form, ensuring that state-assessed railroads not only meet their immediate reporting requirements but also adhere to broader legal, tax, and regulatory frameworks. Proper management and timely submission of these documents safeguard the company's compliance and operational efficacy, fostering a transparent and stable business environment.

Similar forms

The Michigan 1028 form, primarily used for the annual property reporting by state-assessed railroads, shares similarities with other regulatory documents in terms of structure, purpose, and the type of information it requires. These include the IRS Form 990 used by nonprofit organizations, the Uniform Business Report (UBR) filed in some states, and the Property Tax Return forms used for different kinds of property across various jurisdictions. While each document serves a unique regulatory requirement, their commonalities lie in the formalized reporting of operations, financial status, or assets to a overseeing authority to ensure compliance with state or federal laws.

The IRS Form 990 is similar to the Michigan 1028 form in that both are mandatory annual filings that provide a comprehensive overview of the entity's financial activities, operational scope, and changes in organizational structure. However, the 990 is specifically designed for non-profit organizations to report income, expenses, and changes in net assets. It helps the IRS and the public understand how the organization adheres to its exempt purpose, alongside its governance, compliance with tax obligations, and how it allocates its resources.

Similarly, the Uniform Business Report (UBL) aligns with the Michigan 1028 in its collection of essential business information for compliance purposes. Filed primarily in states that require it, the UBR consolidates various individual state requirements into a single, uniform report that includes identifying information, financial data, and operational updates. Like the Michigan 1028, its goal is to streamline the reporting process for businesses while ensuring state governments have up-to-date information for taxation and regulation. However, the UBR is broader in scope, applicable across a range of industries and business types, not just railroad operations.

The standard Property Tax Return forms, used by many local tax authorities across the United States, also share features with the Michigan 1028 form. These forms typically require detail on the owned property, including its acquisition cost, current value, and any depreciation claimed. This similar financial scrutiny allows for the accurate assessment and taxation of property. These forms vary significantly by jurisdiction in terms of detail and format, but the underlying purpose of fair and accurate property taxation intersects with the objectives of the Michigan 1028 report, focusing on assets used in railroad operations.

Dos and Don'ts

When filling out the Michigan 1028 form, an annual property report required for state-assessed railroads, attention to detail and adherence to guidelines ensure both compliance and accuracy in reporting. Here’s a concise guide to dos and don'ts that can help streamline the process:

  • Do ensure that you file the report by the specified deadline. Companies with annual gross receipts over $1,000,000 must file by March 31, while those with receipts of $1,000,000 or less have a deadline of March 15.
  • Do carefully review the instructions on pages 9-12 of the report. These pages contain essential information on how to complete and file your report correctly.
  • Do report any name changes, acquisitions, or sales during the calendar year immediately preceding the statutory due date. Accurate reporting of these changes is crucial for correct assessment.
  • Do not overlook the certification section at the end of the form. The report must be signed by an authorized officer of the company, and notarization is required to validate the signature.
  • Do not guess or estimate figures when completing the report. Use actual data and verify all numbers for accuracy. Guesswork can lead to errors and potential fines.
  • Do not ignore requests for additional information from the Assessment and Certification Division. Timely and responsive communication is essential if clarification or additional data is requested after your initial filing.

Adherence to these dos and don'ts not only complies with Michigan Public Act 282 of 1905, as amended, but also minimizes the risk of penalties, ensuring a smoother process for both the company and the assessing authority.

Misconceptions

Understanding the Michigan 1028 form can often be challenging due to misconceptions about its function, requirements, and filing process. Clearing up these misunderstandings is crucial for businesses operating within the state to comply accurately with tax reporting regulations. Here are five common misconceptions about the Michigan 1028 form:

  • It's only relevant for large corporations. This misunderstanding may lead smaller businesses to believe they're exempt from filing. In reality, the Michigan 1028 form is required for all state-assessed railroads operating within Michigan, regardless of their size. Companies with annual gross receipts over $1,000,000 have a specific filing deadline, as do those with receipts equal to or less than $1,000,000.
  • Filing deadlines are flexible. Some companies may operate under the assumption that the filing deadlines are merely suggestions and can be extended upon request. However, the form clearly states the firm deadlines based on the company's gross receipts. Failure to comply attracts a fine, emphasizing the importance of timely filing.
  • The form requires only financial information. While financial data is a significant part of the report, the form also necessitates detailed information about any changes in company structure, such as name changes, acquisitions, or sales in the preceding calendar year. This aspect highlights the form's role in maintaining current records beyond merely financial reporting.
  • Inventory is always assessable. There's a common notion that all inventory owned by a company is subject to assessment on this form. The form clarifies that inventory is exempt unless it falls into specific categories, such as personal property intended for lease or rental. Understanding these nuances can significantly impact a company's reported liabilities.
  • Software purchases are always assessable. Many companies might include the cost of all software in their reporting, unaware that computer software evidenced by a separate invoice amount, and commonly sold separately, is exempt. This detail can affect the accuracy of a company's reported property values, potentially leading to overassessment.

Correctly understanding the Michigan 1028 form is essential for state-assessed railroads operating within Michigan. By dispelling these misconceptions, companies can ensure accurate compliance, avoid unnecessary penalties, and better manage their taxable property. Awareness and adherence to the specific requirements of the form can significantly impact a company's tax responsibilities and overall financial health.

Key takeaways

Filling out the Michigan 1028 form is essential for State Assessed Railroads, and there are several key points to keep in mind to ensure compliance and accuracy. Below are five crucial takeaways:

  • Deadlines are based on annual gross receipts: Companies with annual gross receipts over $1,000,000 must file the report by March 31. Companies with receipts of $1,000,000 or less have a deadline of March 15.
  • Fines for late filing: A delay in submitting a complete report by the due date incurs a fine of $500 per day. It's important to prepare and review the form thoroughly to avoid unnecessary penalties.
  • Authorized contact person: The form allows only one authorized contact person per company. This person will be the main point of contact for all correspondence related to the report, so choose wisely.
  • Documentation of changes: If your company has undergone name changes, acquisitions, or sales in the year preceding the report's statutory due date, these changes must be documented in the report. Accurate record-keeping throughout the year will streamline this process.
  • Verification by a notary: The form requires the signature of a notary public, asserting the veracity of the information provided. Ensure that the document is signed in the presence of a licensed notary to comply with this requirement.

Understanding these key aspects of the Michigan 1028 form will facilitate a smoother filing process for State Assessed Railroads. Careful attention to deadlines, fines, and accurate reporting will aid in compliance and help avoid penalties.

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