EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
[PERFECTED]
SENATE SUBSTITUTE NO. 2 FOR
SENATE BILL NO. 872
102ND GENERAL ASSEMBLY
INTRODUCED BY SENATOR ESLINGER.
3392S.10P KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 67.2677, 67.5122, and 143.121, RSMo, and to enact in lieu thereof four new
sections relating to the taxation of utility infrastructure.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 67.2677, 67.5122, and 143.121, RSMo, 1
are repealed and four n ew sections enacted in lieu thereof, to 2
be known as sections 67.2677, 67.5122, 143.121, and 144.058, to 3
read as follows:4
67.2677. [1.] For purposes of sections 67.2675 to 1
67.2714, the following terms mean: 2
(1) "Cable operator", as defined in 47 U.S.C. Section 3
522(5); 4
(2) "Cable system", as defined in 47 U.S.C. Section 5
522(7); 6
(3) "Franchise", an initial authorization, or renewal 7
of an authorization, issued by a franchising entity, 8
regardless of whether the authorization is des ignated as a 9
franchise, permit, license, resolution, contract, 10
certificate, agreement, or otherwise, that authorizes the 11
provision of video service and any affiliated or subsidiary 12
agreements related to such authorization; 13 SS#2 SB 872 2
(4) "Franchise area", the total geographic area 14
authorized to be served by an incumbent cable operator in a 15
political subdivision as of August 28, 2007, or, in the case 16
of an incumbent local exchange carrier, as such term is 17
defined in 47 U.S.C. Section 251(h), or affiliate thereof, 18
the area within such political subdivision in which such 19
carrier provides telephone exchange service; 20
(5) "Franchise entity", a political subdivision that 21
was entitled to require franchises and impose fees on cable 22
operators on the day b efore the effective date of sections 23
67.2675 to 67.2714, provided that only one political 24
subdivision may be a franchise entity with regard to a 25
geographic area; 26
(6) (a) "Gross revenues", limited to amounts billed 27
to video service subscribers for the following: 28
a. Recurring charges for video service; and 29
b. Event-based charges for video service, including 30
but not limited to pay -per-view and video-on-demand charges; 31
(b) "Gross revenues" do not include: 32
a. Discounts, refunds, and other price adjustments 33
that reduce the amount of compensation received by an entity 34
holding a video service authorization; 35
b. Uncollectibles; 36
c. Late payment fees; 37
d. Amounts billed to video service subscribers to 38
recover taxes, fees, or surcharges imposed on video service 39
subscribers or video service providers in connection with 40
the provision of video services, including the video service 41
provider fee authorized by this section; 42
e. Fees or other contributions for PEG or I-Net 43
support; 44 SS#2 SB 872 3
f. Charges for services other than video service that 45
are aggregated or bundled with amounts billed to video 46
service subscribers, if the entity holding a video service 47
authorization reasonably can identify such charges on books 48
and records kept in the regular course of business or by 49
other reasonable means; 50
g. Rental of set top boxes, modems, or other equipment 51
used to provide or facilitate the provision of video service; 52
h. Service charges related to the provision of video 53
service including, but not limited to, activation, 54
installation, repair, and maintenance charges; 55
i. Administrative charges related to the provision of 56
video service including, but not limited to, service order 57
and service termination c harges; or 58
j. A pro rata portion of all revenue derived from 59
advertising, less refunds, rebates, or discounts; 60
(c) Except with respect to the exclusion of the video 61
service provider fee, gross revenues shall be computed in 62
accordance with generally accepted accounting principles; 63
(7) "Household", an apartment, a house, a mobile home, 64
or any other structure or part of a structure intended for 65
residential occupancy as separate living quarters; 66
(8) "Incumbent cable operator", the c able service 67
provider serving cable subscribers in a particular franchise 68
area on September 1, 2007; 69
(9) "Low-income household", a household with an 70
average annual household income of less than thirty -five 71
thousand dollars; 72
(10) "Person", an individual, partnership, 73
association, organization, corporation, trust, or government 74
entity; 75 SS#2 SB 872 4
(11) "Political subdivision", a city, town, village, 76
county; 77
(12) "Public right-of-way", the area of real property 78
in which a political subdivis ion has a dedicated or acquired 79
right-of-way interest in the real property, including the 80
area on, below, or above the present and future streets, 81
alleys, avenues, roads, highways, parkways, or boulevards 82
dedicated or acquired as right -of-way and utility easements 83
dedicated for compatible uses. The term does not include 84
the airwaves above a right -of-way with regard to wireless 85
telecommunications or other nonwire telecommunications or 86
broadcast service; 87
(13) "Video programming", programming pr ovided by, or 88
generally considered comparable to programming provided by, 89
a television broadcast station, as set forth in 47 U.S.C. 90
Section 522(20); 91
(14) "Video service", the provision of video 92
programming by a video service provider provided through 93
wireline facilities located at least in part in the public 94
right-of-way without regard to delivery technology, 95
including internet protocol technology whether provided as 96
part of a tier, on demand, or on a per-channel basis. This 97
definition includes cable service as defined by 47 U.S.C. 98
Section 522(6), but does not include any video programming 99
provided by a commercial mobile service provider defined in 100
47 U.S.C. Section 332(d), or any video programming [provided 101
solely as part of and ] accessed via a service that enables 102
users to access content, information, electronic mail, or 103
other services offered over the [public] internet, including 104
streaming content; 105
(15) "Video service authorization", the right of a 106
video service provider or an incumbent cable operator that 107 SS#2 SB 872 5
secures permission from the public service commission 108
pursuant to sections 67.2675 to 67.2714, to offer video 109
service to subscribers in a political subdivision; 110
(16) "Video service network", wireline facilities, or 111
any component thereof, located at least in part in the 112
public right-of-way that deliver video service, without 113
regard to delivery technology, including internet protocol 114
technology or any successor technology. The term video 115
service network shall incl ude cable systems; 116
(17) "Video service provider", any person that 117
distributes video service through a video service network 118
pursuant to a video service authorization; 119
(18) "Video service provider fee", the fee imposed 120
under section 67.2689. 121
[2. The repeal and reenactment of this section shall 122
become effective August 28, 2023. ] 123
67.5122. Sections 67.5110 to 67.5122 shall expire on 1
[January 1, 2025] December 31, 2029, except that for small 2
wireless facilities already permitted or collocated on 3
authority poles prior to such date, the rate set forth in 4
section 67.5116 for collocation of small wireless facilities 5
on authority poles shall remain effective for the duration 6
of the permit authorizing the collocation. 7
143.121. 1. The Missouri adjusted gross income of a 1
resident individual shall be the taxpayer's federal adjusted 2
gross income subject to the modifications in this section. 3
2. There shall be added to the taxpayer's federal 4
adjusted gross income: 5
(1) The amount of any federal income tax refund 6
received for a prior year which resulted in a Missouri 7
income tax benefit. The amount added pursuant to this 8
subdivision shall not include any amount of a federal income 9 SS#2 SB 872 6
tax refund attributable to a tax credit reducing a 10
taxpayer's federal tax liability pursuant to Public Law 116 - 11
136 or 116-260, enacted by the 116th United States Congress, 12
for the tax year beginning on or after January 1, 2020, and 13
ending on or before Decembe r 31, 2020, and deducted from 14
Missouri adjusted gross income pursuant to section 143.171. 15
The amount added under this subdivision shall also not 16
include any amount of a federal income tax refund 17
attributable to a tax credit reducing a taxpayer's feder al 18
tax liability under any other federal law that provides 19
direct economic impact payments to taxpayers to mitigate 20
financial challenges related to the COVID -19 pandemic, and 21
deducted from Missouri adjusted gross income under section 22
143.171; 23
(2) Interest on certain governmental obligations 24
excluded from federal gross income by 26 U.S.C. Section 103 25
of the Internal Revenue Code, as amended. The previous 26
sentence shall not apply to interest on obligations of the 27
state of Missouri or any of it s political subdivisions or 28
authorities and shall not apply to the interest described in 29
subdivision (1) of subsection 3 of this section. The amount 30
added pursuant to this subdivision shall be reduced by the 31
amounts applicable to such interest that wo uld have been 32
deductible in computing the taxable income of the taxpayer 33
except only for the application of 26 U.S.C. Section 265 of 34
the Internal Revenue Code, as amended. The reduction shall 35
only be made if it is at least five hundred dollars; 36
(3) The amount of any deduction that is included in 37
the computation of federal taxable income pursuant to 26 38
U.S.C. Section 168 of the Internal Revenue Code as amended 39
by the Job Creation and Worker Assistance Act of 2002 to the 40
extent the amount deduc ted relates to property purchased on 41 SS#2 SB 872 7
or after July 1, 2002, but before July 1, 2003, and to the 42
extent the amount deducted exceeds the amount that would 43
have been deductible pursuant to 26 U.S.C. Section 168 of 44
the Internal Revenue Code of 1986 as in e ffect on January 1, 45
2002; 46
(4) The amount of any deduction that is included in 47
the computation of federal taxable income for net operating 48
loss allowed by 26 U.S.C. Section 172 of the Internal 49
Revenue Code of 1986, as amended, other than the deduc tion 50
allowed by 26 U.S.C. Section 172(b)(1)(G) and 26 U.S.C. 51
Section 172(i) of the Internal Revenue Code of 1986, as 52
amended, for a net operating loss the taxpayer claims in the 53
tax year in which the net operating loss occurred or carries 54
forward for a period of more than twenty years and carries 55
backward for more than two years. Any amount of net 56
operating loss taken against federal taxable income but 57
disallowed for Missouri income tax purposes pursuant to this 58
subdivision after June 18, 2002, ma y be carried forward and 59
taken against any income on the Missouri income tax return 60
for a period of not more than twenty years from the year of 61
the initial loss; and 62
(5) For nonresident individuals in all taxable years 63
ending on or after December 31, 2006, the amount of any 64
property taxes paid to another state or a political 65
subdivision of another state for which a deduction was 66
allowed on such nonresident's federal return in the taxable 67
year unless such state, political subdivision of a state , or 68
the District of Columbia allows a subtraction from income 69
for property taxes paid to this state for purposes of 70
calculating income for the income tax for such state, 71
political subdivision of a state, or the District of 72
Columbia; 73 SS#2 SB 872 8
(6) For all tax years beginning on or after January 1, 74
2018, any interest expense paid or accrued in a previous 75
taxable year, but allowed as a deduction under 26 U.S.C. 76
Section 163, as amended, in the current taxable year by 77
reason of the carryforward of disallow ed business interest 78
provisions of 26 U.S.C. Section 163(j), as amended. For the 79
purposes of this subdivision, an interest expense is 80
considered paid or accrued only in the first taxable year 81
the deduction would have been allowable under 26 U.S.C. 82
Section 163, as amended, if the limitation under 26 U.S.C. 83
Section 163(j), as amended, did not exist. 84
3. There shall be subtracted from the taxpayer's 85
federal adjusted gross income the following amounts to the 86
extent included in federal adjusted gro ss income: 87
(1) Interest received on deposits held at a federal 88
reserve bank or interest or dividends on obligations of the 89
United States and its territories and possessions or of any 90
authority, commission or instrumentality of the United 91
States to the extent exempt from Missouri income taxes 92
pursuant to the laws of the United States. The amount 93
subtracted pursuant to this subdivision shall be reduced by 94
any interest on indebtedness incurred to carry the described 95
obligations or securities and by any expenses incurred in 96
the production of interest or dividend income described in 97
this subdivision. The reduction in the previous sentence 98
shall only apply to the extent that such expenses including 99
amortizable bond premiums are deducted in dete rmining the 100
taxpayer's federal adjusted gross income or included in the 101
taxpayer's Missouri itemized deduction. The reduction shall 102
only be made if the expenses total at least five hundred 103
dollars; 104 SS#2 SB 872 9
(2) The portion of any gain, from the sale or o ther 105
disposition of property having a higher adjusted basis to 106
the taxpayer for Missouri income tax purposes than for 107
federal income tax purposes on December 31, 1972, that does 108
not exceed such difference in basis. If a gain is 109
considered a long-term capital gain for federal income tax 110
purposes, the modification shall be limited to one -half of 111
such portion of the gain; 112
(3) The amount necessary to prevent the taxation 113
pursuant to this chapter of any annuity or other amount of 114
income or gain which was properly included in income or gain 115
and was taxed pursuant to the laws of Missouri for a taxable 116
year prior to January 1, 1973, to the taxpayer, or to a 117
decedent by reason of whose death the taxpayer acquired the 118
right to receive the income or gain, or to a trust or estate 119
from which the taxpayer received the income or gain; 120
(4) Accumulation distributions received by a taxpayer 121
as a beneficiary of a trust to the extent that the same are 122
included in federal adjusted gross income; 123
(5) The amount of any state income tax refund for a 124
prior year which was included in the federal adjusted gross 125
income; 126
(6) The portion of capital gain specified in section 127
135.357 that would otherwise be included in federal adjusted 128
gross income; 129
(7) The amount that would have been deducted in the 130
computation of federal taxable income pursuant to 26 U.S.C. 131
Section 168 of the Internal Revenue Code as in effect on 132
January 1, 2002, to the extent that amount relates to 133
property purchased on or after July 1, 2002, but before July 134
1, 2003, and to the extent that amount exceeds the amount 135
actually deducted pursuant to 26 U.S.C. Section 168 of the 136 SS#2 SB 872 10
Internal Revenue Code as amended by the Job Creation and 137
Worker Assistance Act of 2002; 138
(8) For all tax years beginning on or after January 1, 139
2005, the amount of any income received for military service 140
while the taxpayer serves in a combat zone which is included 141
in federal adjusted gross income and not otherwise excluded 142
therefrom. As used in this section, "combat zone" means any 143
area which the President of the United States by Executive 144
Order designates as an area in which Armed Forces of the 145
United States are or have engaged in combat. Service is 146
performed in a combat zone only if performed on or after the 147
date designated by the President by Executive Order as the 148
date of the commencing of combat activities in such zone, 149
and on or before the date designated by the President by 150
Executive Order as the date of the termination of c ombatant 151
activities in such zone; 152
(9) For all tax years ending on or after July 1, 2002, 153
with respect to qualified property that is sold or otherwise 154
disposed of during a taxable year by a taxpayer and for 155
which an additional modification was mad e under subdivision 156
(3) of subsection 2 of this section, the amount by which 157
additional modification made under subdivision (3) of 158
subsection 2 of this section on qualified property has not 159
been recovered through the additional subtractions provided 160
in subdivision (7) of this subsection; 161
(10) For all tax years beginning on or after January 162
1, 2014, the amount of any income received as payment from 163
any program which provides compensation to agricultural 164
producers who have suffered a loss as the result of a 165
disaster or emergency, including the: 166
(a) Livestock Forage Disaster Program; 167
(b) Livestock Indemnity Program; 168 SS#2 SB 872 11
(c) Emergency Assistance for Livestock, Honeybees, and 169
Farm-Raised Fish; 170
(d) Emergency Conservation Program ; 171
(e) Noninsured Crop Disaster Assistance Program; 172
(f) Pasture, Rangeland, Forage Pilot Insurance Program; 173
(g) Annual Forage Pilot Program; 174
(h) Livestock Risk Protection Insurance Plan; 175
(i) Livestock Gross Margin Insurance Pla n; 176
(11) For all tax years beginning on or after January 177
1, 2018, any interest expense paid or accrued in the current 178
taxable year, but not deducted as a result of the limitation 179
imposed under 26 U.S.C. Section 163(j), as amended. For the 180
purposes of this subdivision, an interest expense is 181
considered paid or accrued only in the first taxable year 182
the deduction would have been allowable under 26 U.S.C. 183
Section 163, as amended, if the limitation under 26 U.S.C. 184
Section 163(j), as amended, did n ot exist; 185
(12) One hundred percent of any retirement benefits 186
received by any taxpayer as a result of the taxpayer's 187
service in the Armed Forces of the United States, including 188
reserve components and the National Guard of this state, as 189
defined in 32 U.S.C. Sections 101(3) and 109, and any other 190
military force organized under the laws of this state; and 191
(13) For all tax years beginning on or after January 192
1, 2022, one hundred percent of any federal , state, or local 193
grant moneys received [for the purpose of providing or 194
expanding access to broadband internet to areas of the state 195
deemed to be lacking such access ] by the taxpayer if the 196
grant money was disbursed for the express purpose of 197
providing or expanding access to broadband intern et to areas 198
of the state deemed to be lacking such access . 199 SS#2 SB 872 12
4. There shall be added to or subtracted from the 200
taxpayer's federal adjusted gross income the taxpayer's 201
share of the Missouri fiduciary adjustment provided in 202
section 143.351. 203
5. There shall be added to or subtracted from the 204
taxpayer's federal adjusted gross income the modifications 205
provided in section 143.411. 206
6. In addition to the modifications to a taxpayer's 207
federal adjusted gross income in this section, to calculate 208
Missouri adjusted gross income there shall be subtracted 209
from the taxpayer's federal adjusted gross income any gain 210
recognized pursuant to 26 U.S.C. Section 1033 of the 211
Internal Revenue Code of 1986, as amended, arising from 212
compulsory or involuntary conversion of property as a result 213
of condemnation or the imminence thereof. 214
7. (1) As used in this subsection, "qualified health 215
insurance premium" means the amount paid during the tax year 216
by such taxpayer for any insurance policy primarily 217
providing health care coverage for the taxpayer, the 218
taxpayer's spouse, or the taxpayer's dependents. 219
(2) In addition to the subtractions in subsection 3 of 220
this section, one hundred percent of the amount of qualified 221
health insurance premiums shall be subtracted from the 222
taxpayer's federal adjusted gross income to the extent the 223
amount paid for such premiums is included in federal taxable 224
income. The taxpayer shall provide the department of 225
revenue with proof of the amount of qualified health 226
insurance premiums paid. 227
8. (1) Beginning January 1, 2014, in addition to the 228
subtractions provided in this section, one hundred percent 229
of the cost incurred by a taxpayer for a home energy audit 230
conducted by an entity certified by the department of 231 SS#2 SB 872 13
natural resources under section 640.153 or the 232
implementation of any energy efficiency recommendations made 233
in such an audit shall be subtracted from the taxpayer's 234
federal adjusted gross income to the extent the amount paid 235
for any such activity is included in federal taxable 236
income. The taxpayer shall provide the department of 237
revenue with a summary of any recommendations made in a 238
qualified home energy audit, the name and certification 239
number of the qualified home energy auditor who conduct ed 240
the audit, and proof of the amount paid for any activities 241
under this subsection for which a deduction is claimed. The 242
taxpayer shall also provide a copy of the summary of any 243
recommendations made in a qualified home energy audit to the 244
department of natural resources. 245
(2) At no time shall a deduction claimed under this 246
subsection by an individual taxpayer or taxpayers filing 247
combined returns exceed one thousand dollars per year for 248
individual taxpayers or cumulatively exceed two thousand 249
dollars per year for taxpayers filing combined returns. 250
(3) Any deduction claimed under this subsection shall 251
be claimed for the tax year in which the qualified home 252
energy audit was conducted or in which the implementation of 253
the energy efficiency recommendations occurred. If 254
implementation of the energy efficiency recommendations 255
occurred during more than one year, the deduction may be 256
claimed in more than one year, subject to the limitations 257
provided under subdivision (2) of this subsectio n. 258
(4) A deduction shall not be claimed for any otherwise 259
eligible activity under this subsection if such activity 260
qualified for and received any rebate or other incentive 261
through a state-sponsored energy program or through an 262 SS#2 SB 872 14
electric corporation, gas corporation, electric cooperative, 263
or municipally owned utility. 264
9. The provisions of subsection 8 of this section 265
shall expire on December 31, 2020. 266
10. (1) As used in this subsection, the following 267
terms mean: 268
(a) "Beginning farmer", a taxpayer who: 269
a. Has filed at least one but not more than ten 270
Internal Revenue Service Schedule F (Form 1040) Profit or 271
Loss From Farming forms since turning eighteen years of age; 272
b. Is approved for a beginning farmer loan through the 273
USDA Farm Service Agency Beginning Farmer direct or 274
guaranteed loan program; 275
c. Has a farming operation that is determined by the 276
department of agriculture to be new production agriculture 277
but is the principal operator of a farm and has subs tantial 278
farming knowledge; or 279
d. Has been determined by the department of 280
agriculture to be a qualified family member; 281
(b) "Farm owner", an individual who owns farmland and 282
disposes of or relinquishes use of all or some portion of 283
such farmland as follows: 284
a. A sale to a beginning farmer; 285
b. A lease or rental agreement not exceeding ten years 286
with a beginning farmer; or 287
c. A crop-share arrangement not exceeding ten years 288
with a beginning farmer; 289
(c) "Qualified family member", an individual who is 290
related to a farm owner within the fourth degree by blood, 291
marriage, or adoption and who is purchasing or leasing or is 292
in a crop-share arrangement for land from all or a portion 293
of such farm owner's farming operation. 294 SS#2 SB 872 15
(2) (a) In addition to all other subtractions 295
authorized in this section, a taxpayer who is a farm owner 296
who sells all or a portion of such farmland to a beginning 297
farmer may subtract from such taxpayer's Missouri adjusted 298
gross income an amount to the extent included in federal 299
adjusted gross income as provided in this subdivision. 300
(b) Subject to the limitations in paragraph (c) of 301
this subdivision, the amount that may be subtracted shall be 302
equal to the portion of capital gains received from the sale 303
of such farmland that such taxpayer receives in the tax year 304
for which such taxpayer subtracts such capital gain. 305
(c) A taxpayer may subtract the following amounts and 306
percentages per tax year in total capital gains received 307
from the sale of such farmland under this subdivision: 308
a. For the first two million dollars received, one 309
hundred percent; 310
b. For the next one million dollars received, eighty 311
percent; 312
c. For the next one million dollars received, sixty 313
percent; 314
d. For the next one million dollars received, forty 315
percent; and 316
e. For the next one million dollars received, twenty 317
percent. 318
(d) The department of revenue shall prepare an annual 319
report reviewing the costs and benefits and conta ining 320
statistical information regarding the subtraction of capital 321
gains authorized under this subdivision for the previous tax 322
year including, but not limited to, the total amount of all 323
capital gains subtracted and the number of taxpayers 324
subtracting such capital gains. Such report shall be 325
submitted before February first of each year to the 326 SS#2 SB 872 16
committee on agriculture policy of the Missouri house of 327
representatives and the committee on agriculture, food 328
production and outdoor resources of the Miss ouri senate, or 329
the successor committees. 330
(3) (a) In addition to all other subtractions 331
authorized in this section, a taxpayer who is a farm owner 332
who enters a lease or rental agreement for all or a portion 333
of such farmland with a beginning farm er may subtract from 334
such taxpayer's Missouri adjusted gross income an amount to 335
the extent included in federal adjusted gross income as 336
provided in this subdivision. 337
(b) Subject to the limitation in paragraph (c) of this 338
subdivision, the amount that may be subtracted shall be 339
equal to the portion of cash rent income received from the 340
lease or rental of such farmland that such taxpayer receives 341
in the tax year for which such taxpayer subtracts such 342
income. 343
(c) No taxpayer shall subtract more than twenty-five 344
thousand dollars per tax year in total cash rent income 345
received from the lease or rental of such farmland under 346
this subdivision. 347
(4) (a) In addition to all other subtractions 348
authorized in this section, a taxpayer who is a farm owner 349
who enters a crop-share arrangement on all or a portion of 350
such farmland with a beginning farmer may subtract from such 351
taxpayer's Missouri adjusted gross income an amount to the 352
extent included in federal adjusted gross income as provided 353
in this subdivision. 354
(b) Subject to the limitation in paragraph (c) of this 355
subdivision, the amount that may be subtracted shall be 356
equal to the portion of income received from the crop -share 357 SS#2 SB 872 17
arrangement on such farmland that such taxpayer recei ves in 358
the tax year for which such taxpayer subtracts such income. 359
(c) No taxpayer shall subtract more than twenty -five 360
thousand dollars per tax year in total income received from 361
the lease or rental of such farmland under this subdivision. 362
(5) The department of agriculture shall, by rule, 363
establish a process to verify that a taxpayer is a beginning 364
farmer for purposes of this section and shall provide 365
verification to the beginning farmer and farm seller of such 366
farmer's and seller's cert ification and qualification for 367
the exemption provided in this subsection. 368
144.058. In addition to the other exemptions granted 1
pursuant to this chapter, there is hereby specifically 2
exempted from the provisions of and the computatio n of the 3
tax levied, assessed, or payable pursuant to this chapter 4
and the local sales tax law as defined in section 32.085, 5
electrical energy and gas, whether natural, artificial, or 6
propane; water, coal, and energy sources; chemicals, 7
machinery, equipment, parts, and material used or consumed 8
in connection with or to facilitate the generation, 9
transmission, distribution, sale, or furnishing of 10
electricity for light, heat, or power; and any conduits, 11
ducts, or other devices, materials, apparatus, or property 12
for containing, holding, or carrying conductors used or to 13
be used for the transmission of electricity for light, heat, 14
or power service to consumers. The provisions of this 15
section shall be in addition to any other sales or use tax 16
exemption provided by law. Any public utility, as such term 17
is defined in section 386.020, that realizes any savings as 18
a result of the sales tax exemption provided in this section 19
shall provide the public service commission information on 20
the amount of savings realized in such public utility's next 21 SS#2 SB 872 18
general rate proceeding and shall include a statement that 22
such savings will be passed through to the public utility's 23
rate revenue requirement determined in the public utility's 24
next general rate proceeding . As used in this section, 25
savings realized shall be calculated as the difference 26
between sales tax incurred and sales tax expense included in 27
current rates. 28