HOUSE BILL NO. 2711 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE DIEHL.
6029H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 137.010, 137.080, and 137.115, RSMo, and to enact in lieu thereof three new sections relating to the assessment of certain broadband communications equipment.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 137.010, 137.080, and 137.115, RSMo, are repealed and three 2 new sections enacted in lieu thereof, to be known as sections 137.010, 137.080, and 137.115, 3 to read as follows: 137.010. The following words, terms and phrases when used in laws governing 2 taxation and revenue in the state of Missouri shall have the meanings ascribed to them in this 3 section, except when the context clearly indicates a different meaning: 4 (1) "Grain and other agricultural crops in an unmanufactured condition" shall mean 5 grains and feeds including, but not limited to, soybeans, cow peas, wheat, corn, oats, barley, 6 kafir, rye, flax, grain sorghums, cotton, and such other products as are usually stored in grain 7 and other elevators and on farms; but excluding such grains and other agricultural crops after 8 being processed into products of such processing, when packaged or sacked. The term 9 "processing" shall not include hulling, cleaning, drying, grating, or polishing; 10 (2) "Hydroelectric power generating equipment", very-low-head turbine generators 11 with a nameplate generating capacity of at least four hundred kilowatts but not more than six 12 hundred kilowatts and machinery and equipment used directly in the production, generation, 13 conversion, storage, or conveyance of hydroelectric power to land-based devices and 14 appurtenances used in the transmission of electrical energy;
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 2711 2
15 (3) "Intangible personal property", for the purpose of taxation, shall include all 16 property other than real property and tangible personal property, as defined by this section; 17 (4) "Real property" includes land itself, whether laid out in town lots or otherwise, 18 and all growing crops, buildings, structures, improvements and fixtures of whatever kind 19 thereon, hydroelectric power generating equipment, the installed poles used in the 20 transmission or reception of electrical energy, audio signals, video signals or similar 21 purposes, provided the owner of such installed poles is also an owner of a fee simple interest, 22 possessor of an easement, holder of a license or franchise, or is the beneficiary of a right-of- 23 way dedicated for public utility purposes for the underlying land; attached wires, 24 transformers, amplifiers, substations, and other such devices and appurtenances used in the 25 transmission or reception of electrical energy, audio signals, video signals or similar purposes 26 when owned by the owner of the installed poles, otherwise such items are considered personal 27 property; and stationary property used for transportation or storage of liquid and gaseous 28 products, including, but not limited to, petroleum products, natural gas, propane or LP gas 29 equipment, water, and sewage; 30 (5) "Reliever airport", any land and improvements, exclusive of structures, on 31 privately owned airports that qualify as reliever airports under the National Plan of Integrated 32 Airport Systems that may receive federal airport improvement project funds through the 33 Federal Aviation Administration; 34 (6) "Tangible personal property" includes every tangible thing being the subject of 35 ownership or part ownership whether animate or inanimate, other than money, and not 36 forming part or parcel of real property as herein defined, but does not include household 37 goods, furniture, wearing apparel and articles of personal use and adornment, as defined by 38 the state tax commission, owned and used by a person in his home or dwelling place. 39 Tangible personal property shall include: 40 (a) Solar panels, racking systems, inverters, and related solar equipment, components, 41 materials, and supplies installed in connection with solar photovoltaic energy systems, as 42 described in subdivision (46) of subsection 2 of section 144.030, that were constructed and 43 producing solar energy prior to August 9, 2022; and 44 (b) Machinery and equipment used to provide broadband communications 45 service. Machinery and equipment used to provide broadband communications service 46 shall include, but not be limited to, wires, cables, fiber, conduits, antennas, poles, 47 switches, routers, amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers, 48 transmitters, circuit cards, insulating and protective materials and cases, power 49 equipment, backup power equipment, diagnostic equipment, storage devices, customer- 50 premise equipment, modems, software, cable-modem-termination-system components, 51 Wi-Fi equipment, and other general central-office, headend, or hub equipment such as HB 2711 3
52 channel cards, frames, and cabinets, and any successor-technology items used to 53 monitor, test, maintain, enable, or facilitate qualifying equipment, machinery, ancillary 54 components, appurtenances, accessories, or other infrastructure used in whole or in 55 part to provide broadband communications service. 137.080. Real estate and tangible personal property shall be assessed annually at the 2 assessment which commences on the first day of January. For purposes of assessing and 3 taxing tangible personal property, all tangible personal property shall be divided into the 4 following subclasses: 5 (1) Grain and other agricultural crops in an unmanufactured condition; 6 (2) Livestock; 7 (3) Farm machinery; 8 (4) Vehicles, including recreational vehicles, but not including manufactured homes, 9 as defined in section 700.010, which are actually used as dwelling units; 10 (5) Manufactured homes, as defined in section 700.010, which are actually used as 11 dwelling units; 12 (6) Motor vehicles which are eligible for registration and are registered as historic 13 motor vehicles under section 301.131; 14 (7) Solar panels, racking systems, inverters, and related solar equipment, components, 15 materials, and supplies installed in connection with solar photovoltaic energy systems, as 16 described in subdivision (46) of subsection 2 of section 144.030, that were constructed and 17 producing solar energy prior to August 9, 2022; [and] 18 (8) Machinery and equipment used to provide broadband communications 19 service; and 20 (9) All taxable tangible personal property not included in [subclass (1), subclass (2), 21 subclass (3), subclass (4), subclass (5), subclass (6), or subclass (7)] subclasses (1) to (8). 137.115. 1. All other laws to the contrary notwithstanding, the assessor or the 2 assessor's deputies in all counties of this state including the City of St. Louis shall annually 3 make a list of all real and tangible personal property taxable in the assessor's city, county, 4 town or district. Except as otherwise provided in subsection 3 of this section and section 5 137.078, the assessor shall annually assess all personal property at thirty-three and one-third 6 percent of its true value in money as of January first of each calendar year. The assessor shall 7 annually assess all real property, including any new construction and improvements to real 8 property, and possessory interests in real property at the percent of its true value in money set 9 in subsection 5 of this section. The true value in money of any possessory interest in real 10 property in subclass (3), where such real property is on or lies within the ultimate airport 11 boundary as shown by a federal airport layout plan, as defined by 14 CFR 151.5, of a 12 commercial airport having a FAR Part 139 certification and owned by a political subdivision, HB 2711 4
13 shall be the otherwise applicable true value in money of any such possessory interest in real 14 property, less the total dollar amount of costs paid by a party, other than the political 15 subdivision, towards any new construction or improvements on such real property completed 16 after January 1, 2008, and which are included in the above-mentioned possessory interest, 17 regardless of the year in which such costs were incurred or whether such costs were 18 considered in any prior year. The assessor shall annually assess all real property in the 19 following manner: new assessed values shall be determined as of January first of each odd- 20 numbered year and shall be entered in the assessor's books; those same assessed values shall 21 apply in the following even-numbered year, except for new construction and property 22 improvements which shall be valued as though they had been completed as of January first of 23 the preceding odd-numbered year. The assessor may call at the office, place of doing 24 business, or residence of each person required by this chapter to list property, and require the 25 person to make a correct statement of all taxable tangible personal property owned by the 26 person or under his or her care, charge or management, taxable in the county. On or before 27 January first of each even-numbered year, the assessor shall prepare and submit a two-year 28 assessment maintenance plan to the county governing body and the state tax commission for 29 their respective approval or modification. The county governing body shall approve and 30 forward such plan or its alternative to the plan to the state tax commission by February first. 31 If the county governing body fails to forward the plan or its alternative to the plan to the state 32 tax commission by February first, the assessor's plan shall be considered approved by the 33 county governing body. If the state tax commission fails to approve a plan and if the state tax 34 commission and the assessor and the governing body of the county involved are unable to 35 resolve the differences, in order to receive state cost-share funds outlined in section 137.750, 36 the county or the assessor shall petition the administrative hearing commission, by May first, 37 to decide all matters in dispute regarding the assessment maintenance plan. Upon agreement 38 of the parties, the matter may be stayed while the parties proceed with mediation or 39 arbitration upon terms agreed to by the parties. The final decision of the administrative 40 hearing commission shall be subject to judicial review in the circuit court of the county 41 involved. In the event a valuation of subclass (1) real property within any county with a 42 charter form of government, or within a city not within a county, is made by a computer, 43 computer-assisted method or a computer program, the burden of proof, supported by clear, 44 convincing and cogent evidence to sustain such valuation, shall be on the assessor at any 45 hearing or appeal. In any such county, unless the assessor proves otherwise, there shall be a 46 presumption that the assessment was made by a computer, computer-assisted method or a 47 computer program. Such evidence shall include, but shall not be limited to, the following: 48 (1) The findings of the assessor based on an appraisal of the property by generally 49 accepted appraisal techniques; and HB 2711 5
50 (2) The purchase prices from sales of at least three comparable properties and the 51 address or location thereof. As used in this subdivision, the word "comparable" means that: 52 (a) Such sale was closed at a date relevant to the property valuation; and 53 (b) Such properties are not more than one mile from the site of the disputed property, 54 except where no similar properties exist within one mile of the disputed property, the nearest 55 comparable property shall be used. Such property shall be within five hundred square feet in 56 size of the disputed property, and resemble the disputed property in age, floor plan, number of 57 rooms, and other relevant characteristics. 58 2. Assessors in each county of this state and the City of St. Louis may send personal 59 property assessment forms through the mail. 60 3. The following items of personal property shall each constitute separate subclasses 61 of tangible personal property and shall be assessed and valued for the purposes of taxation at 62 the following percentages of their true value in money: 63 (1) Grain and other agricultural crops in an unmanufactured condition, one-half of 64 one percent; 65 (2) Livestock, twelve percent; 66 (3) Farm machinery, twelve percent; 67 (4) Motor vehicles which are eligible for registration as and are registered as historic 68 motor vehicles pursuant to section 301.131 and aircraft which are at least twenty-five years 69 old and which are used solely for noncommercial purposes and are operated less than two 70 hundred hours per year or aircraft that are home built from a kit, five percent; 71 (5) Poultry, twelve percent; 72 (6) Tools and equipment used for pollution control and tools and equipment used in 73 retooling for the purpose of introducing new product lines or used for making improvements 74 to existing products by any company which is located in a state enterprise zone and which is 75 identified by any standard industrial classification number cited in subdivision (7) of section 76 135.200, twenty-five percent; [and] 77 (7) Solar panels, racking systems, inverters, and related solar equipment, components, 78 materials, and supplies installed in connection with solar photovoltaic energy systems, as 79 described in subdivision (46) of subsection 2 of section 144.030, that were constructed and 80 producing solar energy prior to August 9, 2022, five percent; and 81 (8) Machinery and equipment that is used to provide broadband 82 communications service, twelve percent. 83 4. The person listing the property shall enter a true and correct statement of the 84 property, in a printed blank prepared for that purpose. The statement, after being filled out, 85 shall be signed and either affirmed or sworn to as provided in section 137.155. The list shall 86 then be delivered to the assessor. HB 2711 6
87 5. (1) All subclasses of real property, as such subclasses are established in Section 4 88 (b) of Article X of the Missouri Constitution and defined in section 137.016, shall be assessed 89 at the following percentages of true value: 90 (a) For real property in subclass (1), nineteen percent; 91 (b) For real property in subclass (2), twelve percent; and 92 (c) For real property in subclass (3), thirty-two percent. 93 (2) A taxpayer may apply to the county assessor, or, if not located within a county, 94 then the assessor of such city, for the reclassification of such taxpayer's real property if the use 95 or purpose of such real property is changed after such property is assessed under the 96 provisions of this chapter. If the assessor determines that such property shall be reclassified, 97 he or she shall determine the assessment under this subsection based on the percentage of the 98 tax year that such property was classified in each subclassification. 99 6. Manufactured homes, as defined in section 700.010, which are actually used as 100 dwelling units shall be assessed at the same percentage of true value as residential real 101 property for the purpose of taxation. The percentage of assessment of true value for such 102 manufactured homes shall be the same as for residential real property. If the county collector 103 cannot identify or find the manufactured home when attempting to attach the manufactured 104 home for payment of taxes owed by the manufactured home owner, the county collector may 105 request the county commission to have the manufactured home removed from the tax books, 106 and such request shall be granted within thirty days after the request is made; however, the 107 removal from the tax books does not remove the tax lien on the manufactured home if it is 108 later identified or found. For purposes of this section, a manufactured home located in a 109 manufactured home rental park, rental community or on real estate not owned by the 110 manufactured home owner shall be considered personal property. For purposes of this 111 section, a manufactured home located on real estate owned by the manufactured home owner 112 may be considered real property. 113 7. Each manufactured home assessed shall be considered a parcel for the purpose of 114 reimbursement pursuant to section 137.750, unless the manufactured home is deemed to be 115 real estate as defined in subsection 7 of section 442.015 and assessed as a realty improvement 116 to the existing real estate parcel. 117 8. Any amount of tax due and owing based on the assessment of a manufactured 118 home shall be included on the personal property tax statement of the manufactured home 119 owner unless the manufactured home is deemed to be real estate as defined in subsection 7 of 120 section 442.015, in which case the amount of tax due and owing on the assessment of the 121 manufactured home as a realty improvement to the existing real estate parcel shall be 122 included on the real property tax statement of the real estate owner. HB 2711 7
123 9. The assessor of each county and each city not within a county shall use a nationally 124 recognized automotive trade publication such as the National Automobile Dealers' 125 Association Official Used Car Guide, Kelley Blue Book, Edmunds, or other similar 126 publication as the recommended guide of information for determining the true value of motor 127 vehicles described in such publication. The state tax commission shall select and make 128 available to all assessors which publication shall be used. The assessor of each county and 129 each city not within a county shall use the trade-in value published in the current October 130 issue of the publication selected by the state tax commission. The assessor shall not use a 131 value that is greater than the average trade-in value in determining the true value of the motor 132 vehicle without performing a physical inspection of the motor vehicle. For vehicles two years 133 old or newer from a vehicle's model year, the assessor may use a value other than average 134 without performing a physical inspection of the motor vehicle. In the absence of a listing for 135 a particular motor vehicle