HOUSE BILL NO. 2980 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE POLLITT.
6550H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 137.100, 153.030, 153.034, and 523.010, RSMo, and to enact in lieu thereof eight new sections relating to electric utilities, with an emergency clause for a certain section.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 137.100, 153.030, 153.034, and 523.010, RSMo, are repealed 2 and eight new sections enacted in lieu thereof, to be known as sections 67.5350, 137.100, 3 137.124, 153.030, 153.034, 393.172, 393.1120, and 523.010, to read as follows: 67.5350. 1. As used in this section, the following terms shall mean: 2 (1) "Material amendment", any amendment to a permit issued by a county 3 commission to construct a solar farm which: 4 (a) Changes the solar farm's generation type from one type of utility facility to 5 another; 6 (b) Increases the facility's nameplate capacity; or 7 (c) Changes the boundaries of the solar farm, unless the new boundaries of the 8 facility are completely within the previous boundaries of the facility or the facility 9 components outside of the previous boundary are underground; 10 (2) "Solar farm", a group of photovoltaic interconnected solar panels or arrays 11 that convert sunlight into electricity for the primary purpose of wholesale or retail sales 12 of generated electricity, including all on-site equipment and facilities necessary for the 13 proper operation of the facility, such as electrical collection and transmission lines, 14 battery storage systems, transformers, substations, and operations and maintenance 15 facilities within at least twenty continuous acres.
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 2980 2
16 2. Prior to obtaining a certificate of public convenience or necessity issued by the 17 Missouri public service commission, any person constructing a solar farm shall first 18 submit an application to the county commission in each county where the solar farm is 19 to be located. 20 3. The county commission of any county shall adopt an order or ordinance 21 requiring a permit to construct a solar farm within specified boundaries located in 22 whole or in part in an unincorporated area of a county. Such permit shall require the 23 following: 24 (1) Any construction to be at least one thousand linear feet from any church, 25 school, or city, town, or village limit, or any private residence or residential property, 26 including, but not limited to, a nursing home or a senior living facility; 27 (2) Any construction to be at least three hundred linear feet from any other 28 property line, not listed under subdivision (1) of this subsection; or 29 (3) Any construction to be at least two hundred and fifty linear feet from any 30 public road. 31 4. A permit under subsection 3 of this section shall require noise levels not to 32 exceed forty-five decibels at any property line. 33 5. Within ninety days of receiving an application to construct a solar farm, the 34 county commission shall hold a public meeting before the issuance of any such permit to 35 construct a solar farm. Notice shall be provided at least fourteen days prior to the 36 public meeting. At the public meeting, the applicant shall provide in writing the 37 following information: 38 (1) Maximum nameplate capacity of the solar farm; 39 (2) Safety measures to prevent any fire hazard on the solar farm; 40 (3) Geographical area and number of acres of the solar farm; 41 (4) Name, address, and telephone number of the owner or operator of the solar 42 farm; 43 (5) Notice that the county commission will accept written comments from the 44 public for a period of thirty days on the construction of the solar farm; and 45 (6) The address of the office of the county commission. 46 6. No later than ninety days after the public meeting, the county commission 47 shall: 48 (1) Issue a permit to the applicant accepting the construction proposal; 49 (2) Issue a permit to the applicant limiting the boundaries of the proposed solar 50 farm to a smaller geographic area, completely within the geographic area proposed by 51 the applicant; or HB 2980 3
52 (3) Deny the permit and prohibit the construction of the solar farm by the 53 applicant. 54 7. Any applicant intending to make a material amendment once a permit is 55 issued shall submit a new application for a permit to the county commission. 56 8. The county commission shall require any applicant who is issued a permit to 57 obtain liability insurance in an amount sufficient to cover any damages which may arise 58 from the construction of the solar farm. 59 9. The Missouri public service commission shall not issue a certificate of public 60 convenience or necessity to any applicant who did not receive a permit to construct a 61 solar farm from the county commission in each county where the solar farm is to be 62 located. 63 10. The county commission of any county where a solar farm is proposed to be 64 constructed shall require a decommissioning plan that includes removal of the solar 65 farm equipment within twelve months after cessation of operations. The 66 decommissioning plan shall be submitted to the county commission by an owner or 67 operator of the proposed solar farm before construction begins. Decommissioning costs 68 shall be calculated by an engineer licensed in the state. As part of the decommissioning 69 plan, an owner or an operator shall post a bond in an amount of one hundred and 70 twenty-five percent of the estimated decommissioning costs. The decommissioning plan 71 shall be updated every five years by the owner or operator and submitted to the county 72 commission. 137.100. 1. The following subjects are exempt from taxation for state, county or local 2 purposes: 3 (1) Lands and other property belonging to this state; 4 (2) Lands and other property belonging to any city, county or other political 5 subdivision in this state, including market houses, town halls and other public structures, with 6 their furniture and equipments, and on public squares and lots kept open for health, use or 7 ornament; 8 (3) Nonprofit cemeteries; 9 (4) The real estate and tangible personal property which is used exclusively for 10 agricultural or horticultural societies organized in this state, including not-for-profit 11 agribusiness associations; 12 (5) All property, real and personal, actually and regularly used exclusively for 13 religious worship, for schools and colleges, or for purposes purely charitable and not held for 14 private or corporate profit, except that the exemption herein granted does not include real 15 property not actually used or occupied for the purpose of the organization but held or used as HB 2980 4
16 investment even though the income or rentals received therefrom is used wholly for religious, 17 educational or charitable purposes; 18 (6) Household goods, furniture, wearing apparel and articles of personal use and 19 adornment, as defined by the state tax commission, owned and used by a person in [his] such 20 person's home or dwelling place; 21 (7) Motor vehicles leased for a period of at least one year to this state or to any city, 22 county, or political subdivision or to any religious, educational, or charitable organization 23 which has obtained an exemption from the payment of federal income taxes, provided the 24 motor vehicles are used exclusively for religious, educational, or charitable purposes; 25 (8) Real or personal property leased or otherwise transferred by an interstate compact 26 agency created pursuant to sections 70.370 to 70.430 or sections 238.010 to 238.100 to 27 another for which or whom such property is not exempt when immediately after the lease or 28 transfer, the interstate compact agency enters into a leaseback or other agreement that directly 29 or indirectly gives such interstate compact agency a right to use, control, and possess the 30 property; provided, however, that in the event of a conveyance of such property, the interstate 31 compact agency must retain an option to purchase the property at a future date or, within the 32 limitations period for reverters, the property must revert back to the interstate compact 33 agency. Property will no longer be exempt under this subdivision in the event of a 34 conveyance as of the date, if any, when: 35 (a) The right of the interstate compact agency to use, control, and possess the property 36 is terminated; 37 (b) The interstate compact agency no longer has an option to purchase or otherwise 38 acquire the property; and 39 (c) There are no provisions for reverter of the property within the limitation period for 40 reverters; and 41 (9) All property, real and personal, belonging to veterans' organizations. As used in 42 this section, "veterans' organization" means any organization of veterans with a congressional 43 charter, that is incorporated in this state, and that is exempt from taxation under section 501(c) 44 (19) of the Internal Revenue Code of 1986, as amended[; 45 (10) Solar energy systems not held for resale]. 46 2. Notwithstanding the provisions of subsection 1 of this section or any other 47 provision of law to the contrary, solar energy systems constructed for exclusive use of a 48 single property may be exempt at the discretion of the assessor. 137.124. 1. Beginning January 1, 2027, 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 six thousand dollars per HB 2980 5
5 megawatt of nameplate capacity and shall be adjusted for inflation annually based on 6 the Consumer Price Index for All Urban Consumers in the Midwest Region, as recorded 7 by the United Bureau of Labor Statistics. 8 2. Nothing in this section shall be construed to prohibit a project from engaging 9 in enhanced enterprise zone agreements under sections 135.950 to 135.973 or similar tax 10 abatement agreements with state or local officials or to affect any existing enhanced 11 enterprise zone agreements. 12 3. Beginning January 1, 2027, for the purposes of assessing land that is 13 associated with a project that uses solar energy directly to generate electricity, such real 14 property shall be classified as subclass (3) real property and assessed as commercial 15 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 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 HB 2980 6
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. 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. HB 2980 7
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. 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