FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.531
103RDGENERALASSEMBLY
0163H.02C JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection137.122,RSMo,andtoenactinlieuthereoftwonewsectionsrelatingto
propertytaxes.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section137.122,RSMo,isrepealedandtwonewsectionsenactedinlieu
2thereof,tobeknownassections137.067and137.122,toreadasfollows:
137.067.Notwithstandinganyotherprovisionoflawtothecontrary,anyballot
2measureseekingapprovaltoadd,change,ormodifyataxonrealpropertyshallexpress
3theeffectoftheproposedchangewithintheballotlanguageintermsofthechangein
4realdollarsowedperonehundredthousanddollarsofaproperty'smarketvaluation.
137.122.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Businesspersonalproperty",tangiblepersonalpropertywhichisusedinatrade
3orbusinessorusedforproductionofincomeandwhichhasadeterminablelifeoflongerthan
4oneyearexceptthatsuppliesusedbyabusinessshallalsobeconsideredbusinesspersonal
5property,butshallnotincludelivestock,farmmachinery,grainandotheragriculturalcropsin
6anunmanufacturedcondition,propertysubjecttothemotorvehicleregistrationprovisionsof
7chapter301,propertyassessedundersection137.078,thepropertyofruralelectric
8cooperativesunderchapter394,orpropertyassessedbythestatetaxcommissionunder
9chapters151,153,and155,section137.022,andsections137.1000to137.1030;
10 (2)"Classlife",theclasslifeofpropertyassetoutinthefederalModified
11AcceleratedCostRecoverySystemlifetablesortheirsuccessorsundertheInternalRevenue
12Codeasamended;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 13 (3)"Economicorfunctionalobsolescence",alossinvalueofpersonalpropertyabove
14andbeyondphysicaldeteriorationandageoftheproperty.Suchlossmaybetheresultof
15economicorfunctionalobsolescenceorboth;
16 (4)"Originalcost",thepricethecurrentowner,thetaxpayer,paidfortheitemwithout
17freight,installation,orsalesorusetax.Inthecaseofacquisitionofitemsofpersonal
18propertyaspartofanacquisitionofanentity,theoriginalcostshallbethehistoricalcostof
19thoseassetsremaininginplaceandinuseandtheplaced-in-servicedateshallbethedateof
20acquisitionbytheentitybeingacquired;
21 (5)"Placedinservice",propertyisplacedinservicewhenitisreadyandavailablefor
22aspecificuse,whetherinabusinessactivity,anincome-producingactivity,atax-exempt
23activity,orapersonalactivity.Evenifthepropertyisnotbeingused,thepropertyisin
24servicewhenitisreadyandavailableforitsspecificuse;
25 (6)"Recoveryperiod",theperiodoverwhichtheoriginalcostofdepreciabletangible
26personalpropertyshallbedepreciatedforpropertytaxpurposesandshallbethesameasthe
27recoveryperiodallowedforsuchpropertyundertheInternalRevenueCode.
28 2.Toestablishuniformityintheassessmentofdepreciabletangiblepersonalproperty,
29eachassessorshallusethestandardizedscheduleofdepreciationinthissectiontodetermine
30theassessedvaluationofdepreciabletangiblepersonalpropertyforthepurposeofestimating
31thevalueofsuchpropertysubjecttotaxationunderthischapter.
32 3.Forpurposesofthissection,andtoestimatethevalueofdepreciabletangible
33personalpropertyformassappraisalpurposes,eachassessorshallvaluedepreciabletangible
34personalpropertybyapplyingtheclasslifeandrecoveryperiodtotheoriginalcostofthe
35propertyaccordingtothefollowingdepreciationschedule.Thepercentageshownforthefirst
36yearshallbethepercentageoftheoriginalcostusedforJanuaryfirstoftheyearfollowingthe
37yearofacquisitionoftheproperty,andthepercentageshownforeachsucceedingyearshall
38bethepercentageoftheoriginalcostusedforJanuaryfirstoftherespectivesucceedingyear
39asfollows:
40 Year RecoveryPeriodinYears
41 3 5 7 10 15 20
42 1 75.0085.0089.2992.5095.0096.25
43 2 37.5059.5070.1678.6285.5089.03
44 3 12.5041.6555.1366.8376.9582.35
45 4 5.0024.9942.8856.8169.2576.18
46 5 10.0030.6348.0762.3270.46
47 6 18.3839.3356.0965.18
48 7 10.0030.5950.1960.29
HCSHB531 2 49 8 21.8544.2955.77
50 9 15.0038.3851.31
51 10 32.4846.85
52 11 26.5742.38
53 12 20.6737.92
54 13 15.0033.46
55 14 29.00
56 15 24.54
57 16 20.08
58 17 20.00
59
60Depreciabletangiblepersonalpropertyinallrecoveryperiodsshallcontinueinsubsequent
61yearstohavethedepreciationfactorlastlistedintheappropriatecolumnsolongasitis
62ownedorheldbythetaxpayer.Thestatetaxcommissionshallstudyandanalyzethevalues
63establishedbythismethodofassessmentandineveryodd-numberedyearmake
64recommendationstothejointcommitteeontaxpolicypertainingtoanychangesinthis
65methodology,ifany,thatarewarranted.
66 4.Suchestimateofvaluedeterminedunderthissectionshallbepresumedtobe
67correctforthepurposeofdeterminingthetruevalueinmoneyofthedepreciabletangible
68personalproperty,butsuchestimationmaybedisprovedbyataxpayerbysubstantialand
69persuasiveevidenceofthetruevalueinmoneyunderanymethoddeterminedbythestatetax
70commissiontobecorrect,including,butnotlimitedto,anappraisalofthetangiblepersonal
71propertyspecificallyutilizinggenerallyacceptedappraisaltechniques,andcontainedina
72narrativeappraisalreportinaccordancewiththeUniformStandardsofProfessionalAppraisal
73Practiceorbyproofofeconomicorfunctionalobsolescenceorevidenceofexcessive
74physicaldeterioration.Forpurposesofappealoftheprovisionsofthissection,thesalvageor
75scrapvalueofdepreciabletangiblepersonalpropertymayonlybeconsiderediftheproperty
76isnotinuseasoftheassessmentdate.
77 5.Thissectionshallnotapplytobusinesspersonalpropertyplacedinservicebefore
78January2,2006.Nothinginthissectionshallcreateapresumptionastothepropermethodof
79determiningtheassessedvaluationofbusinesspersonalpropertyplacedinservicebefore
80January2,2006.
81 6.Theprovisionsofthissectionarenotintendedtomodifythedefinitionoftangible
82personalpropertyasdefinedinsection137.010.
83 7.(1)BeginningJanuary1,2026,thissectionshallapplytoallrealproperty,
84placedinserviceatanytime,thatisstationarypropertyusedfortransportationor
HCSHB531 3 85storageofliquidandgaseousproducts,includingwater,sewage,andnaturalgasthatis
86notpropaneorLPgas,butnotincludingpetroleumproducts.
87 (2)Toestimatethevalueoftherealpropertydescribedinthissubsection,each
88assessorshallvaluesuchpropertybyapplyingatwenty-yearrecoveryperiodtothe
89originalcostofthepropertyaccordingtothetwenty-yeardepreciationscheduleset
90forthinsubsection3ofthissection.Notwithstandingsubsection5ofthissection,the
91presumptionastothepropermethodofdeterminingtheassessedvalueofsuchproperty
92shallapplyregardlessofwhensuchpropertywasplacedinservice.
93 (3)Eachtaxpayerowningrealpropertydescribedinthissubsectionshall
94providetoanassessor,onorbeforeMayfirstoftheapplicabletaxyear,theoriginalcost
95andyearplacedinserviceofsuchpropertysummarizedinaformatthatissubstantially
96similartotherealpropertyreportingandvaluationformscontainedinsection7.4ofthe
97statetaxcommissionassessormanual(revisiondateMarch23,2016)oranyother
98revisionadoptedbythestatetaxcommissionthereafter.Uponthewrittenrequestofthe
99assessor,suchinformationshallbeprovidedforeachtaxingdistrictwithintheassessor's
100jurisdiction.Ifrequestedbythetaxpayer,theassessorshallprovidetothetaxpayer
101geographicinformationsystemmapsinreadablelayersonwhichataxpayermay
102providetheinformationinthissubsection.Thetaxpayershallcertifyunderpenaltyof
103perjurythattheinformationprovidedtotheassessorpursuanttothissubsectionis
104accuratetothebestofhisorherknowledge.Allinformationprovidedtoanassessor
105pursuanttothissubsectionshallbeconsideredproprietaryinformationandshallbe
106accessibleonlytotheassessorandtheassessor'sstaffforinternaluseonly.
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HCSHB531 4