HOUSE BILL NO. 2762 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE BANDERMAN.
6405H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 137.016, 153.030, 153.034, 247.220, and 523.010, RSMo, and to enact in lieu thereof eight new sections relating to utilities, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 137.016, 153.030, 153.034, 247.220, and 523.010, RSMo, are 2 repealed and eight new sections enacted in lieu thereof, to be known as sections 137.016, 3 137.124, 153.030, 153.034, 247.220, 393.1120, 393.2600, and 523.010, to read as follows: 137.016. 1. As used in Section 4(b) of Article X of the Missouri Constitution, the 2 following terms mean: 3 (1) "Residential property", all real property improved by a structure which is used or 4 intended to be used for residential living by human occupants, vacant land in connection with 5 an airport, land used as a golf course, manufactured home parks, bed and breakfast inns in 6 which the owner resides and uses as a primary residence with six or fewer rooms for rent, and 7 time-share units as defined in section 407.600, except to the extent such units are actually 8 rented and subject to sales tax under subdivision (6) of subsection 1 of section 144.020, but 9 residential property shall not include other similar facilities used primarily for transient 10 housing. For the purposes of this section, "transient housing" means all rooms available for 11 rent or lease for which the receipts from the rent or lease of such rooms are subject to state 12 sales tax pursuant to subdivision (6) of subsection 1 of section 144.020; 13 (2) "Agricultural and horticultural property", all real property used for agricultural 14 purposes and devoted primarily to the raising and harvesting of crops; to the feeding, 15 breeding and management of livestock which shall include breeding, showing, and boarding 16 of horses; to dairying, or to any other combination thereof; and buildings and structures
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 2762 2
17 customarily associated with farming, agricultural, and horticultural uses. Agricultural and 18 horticultural property shall also include land devoted to and qualifying for payments or other 19 compensation under a soil conservation or agricultural assistance program under an 20 agreement with an agency of the federal government. Agricultural and horticultural property 21 shall further include any reliever airport. Real property classified as forest croplands shall not 22 be agricultural or horticultural property so long as it is classified as forest croplands and shall 23 be taxed in accordance with the laws enacted to implement Section 7 of Article X of the 24 Missouri Constitution. Agricultural and horticultural property shall also include any sawmill 25 or planing mill defined in the U.S. Department of Labor's Standard Industrial Classification 26 (SIC) Manual under Industry Group 242 with the SIC number 2421. Agricultural and 27 horticultural property shall also include urban and community gardens. For the purposes of 28 this section, "urban and community gardens" shall include real property cultivated by 29 residents of a neighborhood or community for the purposes of providing agricultural 30 products, as defined in section 262.900, for the use of residents of the neighborhood or 31 community, and shall not include a garden intended for individual or personal use; 32 (3) "Utility, industrial, commercial, railroad and other real property", all real property 33 used directly or indirectly for any commercial, mining, industrial, manufacturing, trade, 34 professional, business, or similar purpose, including all property centrally assessed by the 35 state tax commission but shall not include floating docks, portions of which are separately 36 owned and the remainder of which is designated for common ownership and in which no one 37 person or business entity owns more than five individual units. All other real property not 38 included in the property listed in subclasses (1) and (2) of Section 4(b) of Article X of the 39 Missouri Constitution, as such property is defined in this section, shall be deemed to be 40 included in the term "utility, industrial, commercial, railroad and other real property". 41 2. Pursuant to Article X of the state Constitution, any taxing district may adjust its 42 operating levy to recoup any loss of property tax revenue, except revenues from the surtax 43 imposed pursuant to Article X, Subsection 2 of Section 6 of the Constitution, as the result of 44 changing the classification of structures intended to be used for residential living by human 45 occupants which contain five or more dwelling units if such adjustment of the levy does not 46 exceed the highest tax rate in effect subsequent to the 1980 tax year. For purposes of this 47 section, loss in revenue shall include the difference between the revenue that would have been 48 collected on such property under its classification prior to enactment of this section and the 49 amount to be collected under its classification under this section. The county assessor of each 50 county or city not within a county shall provide information to each taxing district within its 51 boundaries regarding the difference in assessed valuation of such property as the result of 52 such change in classification. HB 2762 3
53 3. All reclassification of property as the result of changing the classification of 54 structures intended to be used for residential living by human occupants which contain five or 55 more dwelling units shall apply to assessments made after December 31, 1994. 56 4. Where real property is used or held for use for more than one purpose and such 57 uses result in different classifications, the county assessor shall allocate to each classification 58 the percentage of the true value in money of the property devoted to each use; except that, 59 where agricultural and horticultural property, as defined in this section, also contains a 60 dwelling unit or units, the farm dwelling, appurtenant residential-related structures and up to 61 five acres immediately surrounding such farm dwelling shall be residential property, as 62 defined in this section, provided that the portion of property used or held for use as an urban 63 and community garden shall not be residential property. This subsection shall not apply to 64 any reliever airport. The provisions of this subsection shall be construed to apply to any 65 portion of real property in subclass (2) used for the purpose of energy production 66 activities for resale to be proportionally calculated, assessed, and reclassified as subclass 67 (3) real property, except that the provisions shall not apply to agreements authorized 68 under chapter 100 or to solar photovoltaic energy systems, as described in subdivision 69 (46) of subsection 2 of section 144.030, that were constructed and producing solar energy 70 prior to August 9, 2022. 71 5. All real property which is vacant, unused, or held for future use; which is used for a 72 private club, a not-for-profit or other nonexempt lodge, club, business, trade, service 73 organization, or similar entity; or for which a determination as to its classification cannot be 74 made under the definitions set out in subsection 1 of this section, shall be classified according 75 to its immediate most suitable economic use, which use shall be determined after 76 consideration of: 77 (1) Immediate prior use, if any, of such property; 78 (2) Location of such property; 79 (3) Zoning classification of such property; except that, such zoning classification 80 shall not be considered conclusive if, upon consideration of all factors, it is determined that 81 such zoning classification does not reflect the immediate most suitable economic use of the 82 property; 83 (4) Other legal restrictions on the use of such property; 84 (5) Availability of water, electricity, gas, sewers, street lighting, and other public 85 services for such property; 86 (6) Size of such property; 87 (7) Access of such property to public thoroughfares; and 88 (8) Any other factors relevant to a determination of the immediate most suitable 89 economic use of such property. HB 2762 4
90 6. All lands classified as forest croplands shall not, for taxation purposes, be 91 classified as subclass (1), subclass (2), or subclass (3) real property, as such classes are 92 prescribed in Section 4(b) of Article X of the Missouri Constitution and defined in this 93 section, but shall be taxed in accordance with the laws enacted to implement Section 7 of 94 Article X of the Missouri Constitution. 137.124. 1. Beginning August 28, 2026, for purposes of assessing all real 2 property, excluding land, or tangible personal property associated with a project that 3 uses solar energy directly to generate electricity and that was built or was contracted to 4 sell power, the tax liability actually owed shall be equal to two thousand five hundred 5 dollars per megawatt of nameplate capacity. 6 2. Nothing in this section shall be construed to prohibit a project from engaging 7 in enhanced enterprise zone agreements under sections 135.950 to 135.973 or similar tax 8 abatement agreements with state or local officials or to affect any existing enhanced 9 enterprise zone agreements. Nothing in this section shall be construed to apply to 10 agreements authorized under chapter 100. 11 3. Beginning August 28, 2026, for the purposes of assessing land that is 12 associated with a project that uses solar energy directly to generate electricity in excess 13 of five megawatts, such real property may be classified as subclass (3) real property and 14 assessed as commercial property under this chapter. 153.030. 1. All bridges over streams dividing this state from any other state owned, 2 used, leased or otherwise controlled by any person, corporation, railroad company or joint 3 stock company, and all bridges across or over navigable streams within this state, where the 4 charge is made for crossing the same, which are now constructed, which are in the course of 5 construction, or which shall hereafter be constructed, and all property, real and tangible 6 personal, owned, used, leased or otherwise controlled by telegraph, telephone, electric power 7 and light companies, electric transmission lines, pipeline companies and express companies 8 shall be subject to taxation for state, county, municipal and other local purposes to the same 9 extent as the property of private persons. 10 2. [And] Taxes levied [thereon] under subsection 1 of this section shall be levied 11 and collected in the manner as is now or may hereafter be provided by law for the taxation of 12 railroad property in this state, and county commissions, county boards of equalization and the 13 state tax commission are hereby required to perform the same duties and are given the same 14 powers, including punitive powers, in assessing, equalizing and adjusting the taxes on the 15 property set forth in this section as the county commissions and boards of equalization and 16 state tax commission have or may hereafter be empowered with, in assessing, equalizing, and 17 adjusting the taxes on railroad property; and an authorized officer of any such bridge, 18 telegraph, telephone, electric power and light companies, electric transmission lines, pipeline HB 2762 5
19 companies, or express company or the owner of any such toll bridge, is hereby required to 20 render reports of the property of such bridge, telegraph, telephone, electric power and light 21 companies, electric transmission lines, pipeline companies, or express companies in like 22 manner as the authorized officer of the railroad company is now or may hereafter be required 23 to render for the taxation of railroad property. 24 3. On or before the fifteenth day of April in the year 1946 and each year thereafter an 25 authorized officer of each such company shall furnish the state tax commission and county 26 clerks a report, duly subscribed and sworn to by such authorized officer, which is like in 27 nature and purpose to the reports required of railroads under chapter 151 showing the full 28 amount of all real and tangible personal property owned, used, leased or otherwise controlled 29 by each such company on January first of the year in which the report is due. 30 4. If any telephone company assessed pursuant to chapter 153 has a microwave relay 31 station or stations in a county in which it has no wire mileage but has wire mileage in another 32 county, then, for purposes of apportioning the assessed value of the distributable property of 33 such companies, the straight line distance between such microwave relay stations shall 34 constitute miles of wire. In the event that any public utility company assessed pursuant to this 35 chapter has no distributable property which physically traverses the counties in which it 36 operates, then the assessed value of the distributable property of such company shall be 37 apportioned to the physical location of the distributable property. 38 5. (1) Notwithstanding any provision of law to the contrary, beginning January 1, 39 2019, a telephone company shall make a one-time election within the tax year to be assessed: 40 (a) Using the methodology for property tax purposes as provided under this section; 41 or 42 (b) Using the methodology for property tax purposes as provided under this section 43 for property consisting of land and buildings and be assessed for all other property 44 exclusively using the methodology utilized under section 137.122. 45 46 If a telephone company begins operations, including a merger of multiple telephone 47 companies, after August 28, 2018, it shall make its one-time election to be assessed using the 48 methodology for property tax purposes as described under paragraph (b) of subdivision (1) of 49 this subsection within the year in which the telephone company begins its operations. A 50 telephone company that fails to make a timely election shall be deemed to have elected to be 51 assessed using the methodology for property tax purposes as provided under subsections 1 to 52 4 of this section. 53 (2) The provisions of this subsection shall not be construed to change the original 54 assessment jurisdiction of the state tax commission. HB 2762 6
55 (3) Nothing in subdivision (1) of this subsection shall be construed as applying to any 56 other utility. 57 (4) (a) The provisions of this subdivision shall ensure that school districts may avoid 58 any fiscal impact as a result of a telephone company being assessed under the provisions of 59 paragraph (b) of subdivision (1) of this subsection. If a school district's current operating levy 60 is below the greater of its most recent voter-approved tax rate or the most recent voter- 61 approved tax rate as adjusted under subdivision (2) of subsection 5 of section 137.073, it shall 62 comply with section 137.073. 63 (b) Beginning January 1, 2019, any school district currently operating at a tax rate 64 equal to the greater of the most recent voter-approved tax rate or the most recent voter- 65 approved tax rate as adjusted under subdivision (2) of subsection 5 of section 137.073 that 66 receives less tax revenue from a specific telephone company under this subsection, on or 67 before January thirty-first of the year following the tax year in which the school district 68 received less revenue from a specific telephone company, may by resolution of the school 69 board impose a fee, as determined under this subsection, in order to obtain such revenue. The 70 resolution shall include all facts that support the imposition of the fee. If the school district 71 receives voter approval to raise its tax rate, the district shall no longer impose the fee 72 authorized in this paragraph. 73 (c) Any fee imposed under paragraph (b) of this subdivision shall be determined by 74 taking the difference between the tax revenue the telephone company paid in the tax year in 75 question and the tax revenue the telephone company would have paid in such year had it not 76 made an election under subdivision (1) of this subsection, which shall be calculated by taking 77 the telephone company valuations in the tax year in question, as determined by the state tax 78 commission under paragraph (d) of this subdivision, and applying such valuations to the 79 apportionment process in subsection 2 of section 151.150. The school district shall issue a 80 billing, as provided in this subdivision, to any such telephone company. A telephone 81 company shall have forty-five days after receipt of a billing to remit its payment of its portion 82 of the fees to the school district. Notwithstanding any other provision of law, the issuance or 83 receipt of such fee shall not be used: 84 a. In determining the amount of state aid that a school district receives under section 85 163.031; 86 b. In determining the amount that may be collected under a property tax levy by such 87 district; or 88 c. For any other purpose. 89 90 For the purposes of accounting, a telephone company that issues a payment to a school 91 district under this subsection shall treat such payment as a tax. HB 2762 7
92 (d) When establishing the valuation of a telephone company assessed under 93 paragraph (b) of subdivision (1) of this subsection, the state tax commission shall also 94 determine the difference between the assessed value of a telephone company if: 95 a. Assessed under paragraph (b) of subdivision (1) of this subsection; and 96 b. Assessed exclusively under subsections 1 to 4 of this section. 97 98 The state tax commission shall then apportion such amount to each county and provide such 99 information to any school district making a request for such information. 100 (e) This subsection shall expire when no school district is eligible for a fee. 101 6. (1) If any public utility company assessed pursuant to this chapter has ownership 102 of any real or personal property associated with a project which uses solar or wind energy 103 directly to generate electricity, such solar or wind energy project property shall be valued and 104 taxed by any local authorities having jurisdiction under the provisions of chapter 137 and 105 other relevant provisions of the law. 106 (2)