HOUSE BILL NO. 1892 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE HAUSMAN.
5059H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 137.122, RSMo, and to enact in lieu thereof one new section relating to property taxes.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 137.122, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 137.122, to read as follows: 137.122. 1. As used in this section, the following terms mean: 2 (1) "Business personal property", tangible personal property which is used in a trade 3 or business or used for production of income and which has a determinable life of longer than 4 one year except that supplies used by a business shall also be considered business personal 5 property, but shall not include livestock, farm machinery, grain and other agricultural crops in 6 an unmanufactured condition, property subject to the motor vehicle registration provisions of 7 chapter 301, property assessed under section 137.078, the property of rural electric 8 cooperatives under chapter 394, or property assessed by the state tax commission under 9 chapters 151, 153, and 155, section 137.022, and sections 137.1000 to 137.1030; 10 (2) "Class life", the class life of property as set out in the federal Modified 11 Accelerated Cost Recovery System life tables or their successors under the Internal Revenue 12 Code as amended; 13 (3) "Economic or functional obsolescence", a loss in value of personal property above 14 and beyond physical deterioration and age of the property. Such loss may be the result of 15 economic or functional obsolescence or both; 16 (4) "Original cost", the price the current owner, the taxpayer, paid for the item without 17 freight, installation, or sales or use tax. In the case of acquisition of items of personal
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1892 2
18 property as part of an acquisition of an entity, the original cost shall be the historical cost of 19 those assets remaining in place and in use and the placed-in-service date shall be the date of 20 acquisition by the entity being acquired; 21 (5) "Placed in service", property is placed in service when it is ready and available for 22 a specific use, whether in a business activity, an income-producing activity, a tax-exempt 23 activity, or a personal activity. Even if the property is not being used, the property is in 24 service when it is ready and available for its specific use; 25 (6) "Recovery period", the period over which the original cost of depreciable tangible 26 personal property shall be depreciated for property tax purposes and shall be the same as the 27 recovery period allowed for such property under the Internal Revenue Code. 28 2. To establish uniformity in the assessment of depreciable tangible personal property, 29 each assessor shall use the standardized schedule of depreciation in this section to determine 30 the assessed valuation of depreciable tangible personal property for the purpose of estimating 31 the value of such property subject to taxation under this chapter. 32 3. For purposes of this section, and to estimate the value of depreciable tangible 33 personal property for mass appraisal purposes, each assessor shall value depreciable tangible 34 personal property by applying the class life and recovery period to the original cost of the 35 property according to the following depreciation schedule. The percentage shown for the first 36 year shall be the percentage of the original cost used for January first of the year following the 37 year of acquisition of the property, and the percentage shown for each succeeding year shall 38 be the percentage of the original cost used for January first of the respective succeeding year 39 as follows: 40 Year Recovery Period in Years 41 3 5 7 10 15 20 42 1 75.00 85.00 89.29 92.50 95.00 96.25 43 2 37.50 59.50 70.16 78.62 85.50 89.03 44 3 12.50 41.65 55.13 66.83 76.95 82.35 45 4 5.00 24.99 42.88 56.81 69.25 76.18 46 5 10.00 30.63 48.07 62.32 70.46 47 6 18.38 39.33 56.09 65.18 48 7 10.00 30.59 50.19 60.29 49 8 21.85 44.29 55.77 50 9 15.00 38.38 51.31 51 10 32.48 46.85 52 11 26.57 42.38 53 12 20.67 37.92 HB 1892 3
54 13 15.00 33.46 55 14 29.00 56 15 24.54 57 16 20.08 58 17 20.00 59 60 Depreciable tangible personal property in all recovery periods shall continue in subsequent 61 years to have the depreciation factor last listed in the appropriate column so long as it is 62 owned or held by the taxpayer. The state tax commission shall study and analyze the values 63 established by this method of assessment and in every odd-numbered year make 64 recommendations to the joint committee on tax policy pertaining to any changes in this 65 methodology, if any, that are warranted. 66 4. Such estimate of value determined under this section shall be presumed to be 67 correct for the purpose of determining the true value in money of the depreciable tangible 68 personal property, but such estimation may be disproved by a taxpayer by substantial and 69 persuasive evidence of the true value in money under any method determined by the state tax 70 commission to be correct, including, but not limited to, an appraisal of the tangible personal 71 property specifically utilizing generally accepted appraisal techniques, and contained in a 72 narrative appraisal report in accordance with the Uniform Standards of Professional Appraisal 73 Practice or by proof of economic or functional obsolescence or evidence of excessive 74 physical deterioration. For purposes of appeal of the provisions of this section, the salvage or 75 scrap value of depreciable tangible personal property may only be considered if the property 76 is not in use as of the assessment date. 77 5. This section shall not apply to business personal property placed in service before 78 January 2, 2006. Nothing in this section shall create a presumption as to the proper method of 79 determining the assessed valuation of business personal property placed in service before 80 January 2, 2006. 81 6. The provisions of this section are not intended to modify the definition of tangible 82 personal property as defined in section 137.010. 83 7. (1) Beginning January 1, 2027, this section shall apply to all real property, 84 placed in service at any time, that is stationary property used for transportation or 85 storage of liquid and gaseous products, including water, sewage, and natural gas that is 86 not propane or LP gas, but not including petroleum products. 87 (2) To estimate the value of the real property described in this subsection, each 88 assessor shall value such property by applying a twenty-year recovery period to the 89 original cost of the property according to the twenty-year depreciation schedule set HB 1892 4
90 forth in subsection 3 of this section. Notwithstanding subsection 5 of this section, the 91 presumption as to the proper method of determining the assessed value of such property 92 shall apply regardless of when such property was placed in service. 93 (3) Each taxpayer owning real property described in this subsection shall 94 provide to an assessor, on or before May first of the applicable tax year, the original cost 95 and year placed in service of such property summarized in a format that is substantially 96 similar to the real property reporting and valuation forms contained in section 7.4 of the 97 state tax commission assessor manual, revision date March 4, 2025, or any other 98 revision adopted by the state tax commission thereafter. Upon the written request of the 99 assessor, such information shall be provided for each taxing district within the assessor's 100 jurisdiction. If requested by the taxpayer, the assessor shall provide to the taxpayer 101 geographic information system maps in readable layers on which a taxpayer may 102 provide the information in this subsection. The taxpayer shall certify under penalty of 103 perjury that the information provided to the assessor under this subsection is accurate 104 to the best of the taxpayer's knowledge. All information provided to an assessor under 105 this subsection shall be considered proprietary information and shall be accessible only 106 to the assessor and the assessor's staff for internal use only. ✔
Statutes affected: