SECOND REGULAR SESSION
92ND GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES SUTHERLAND (Sponsor) AND COOPER (120) (Co-sponsor).
Read 1st time March 17, 2004, and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
AN ACT
To amend chapter 137, RSMo, by adding thereto one new section relating to the depreciation of tangible personal property.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 137, RSMo, is amended by adding thereto one new section, to be known as section 137.122, to read as follows:
137.122. 1. As used in this section, the following terms mean:
(1) "Asset class", the group, type, or category of property that an item of depreciable tangible personal property falls within as established in subsection 3 of this section;
(2) "Depreciable tangible personal property", every tangible thing that is the subject of ownership, including all machinery, equipment, support machinery and equipment, that is not real property, which is used in a trade or business, but not including livestock, farm machinery, property subject to the motor vehicle registration provisions of chapter 301, RSMo, nor property assessed by the state tax commission under chapter 151, 153, 155, RSMo, or section 137.022 and sections 137.1000 to 137.1030;
(3) "Original cost", the purchase price paid by the taxpayer for an item of depreciable tangible personal property, except for excise or sales taxes and freight charges;
(4) "Recovery period", the period over which the original cost of depreciable tangible personal property shall be depreciated for property tax purposes and which is designated under the column titled "Year" in the depreciable tangible personal property schedule in subsection 3 of this section.
2. To establish uniformity in the assessment of depreciable tangible personal property, each assessor shall use a standardized schedule of depreciation to determine the assessed valuation of depreciable tangible personal property for the purpose of estimating the value of such property subject to taxation under this chapter.
3. For the purposes of this section, depreciable tangible personal property shall be divided into different asset classes according to the following:
(1) Asset Class A property shall include furniture and fixtures;
(2) Asset Class B property shall include machinery and equipment;
(3) Asset Class C property shall include rental videotapes and games;
(4) Asset Class D property shall include office, electronic, video, and testing equipment;
(5) Asset Class E property shall include consumer coin-operated equipment; and
(6) Asset Class F property shall include computer equipment.
If property is not specifically enumerated in the list of property as a particular asset class, the assessor shall choose the asset class that most accurately describes such property. The following depreciable tangible personal property schedule shall be used by any assessor for purposes of estimating the value of tangible personal property for mass appraisal purposes for each asset class. The percentage shown for the first year shall be the percentage of the original cost used for January first of the year following the year of acquisition of the property, and the percentage shown for each succeeding year shall be the percentage of the original cost used for January first of the respective succeeding year as follows:
DEPRECIABLE TANGIBLE PERSONAL PROPERTY SCHEDULE
Asset Asset Asset Asset Asset Asset
Class A Class B Class C Class D Class E Class F
Year % Year % Year % Year % Year % Year %
1 91 1 89 1 76 1 84 1 92 1 60
2 80 2 76 2 53 2 64 2 85 2 44
3 69 3 67 3 29 3 55 3 77 3 32
4 61 4 60 4 5 4 49 4 69 4 24
5 53 5 54 5+ 5 5 44 5 61 5 19
6 47 6 49 6 41 6 54 6 15
7 42 7 45 7 38 7 46 7 8
8 37 8 42 8 35 8 38 8+ 8
9 33 9 38 9 33 9 30
10 29 10 36 10 31 10 23
11 27 11 33 11 29 11 15
12 24 12 31 12 28 12+ 15
13 22 13 29 13 26
14 19 14 28 14 25
15 12 15 23 15 17
16+ 12 16+ 23 16+ 17
Such estimate of value determined under this section shall be presumed to be correct for the purpose of determining the true value in money of the depreciable tangible personal property, but such estimation may be disproved by substantial and persuasive evidence of the true value in money under any method determined by the state tax commission to be correct, including, but not limited to, an appraisal of the tangible personal property specifically utilizing generally accepted appraisal techniques, and contained in a narrative appraisal report in accordance with the Uniform Standards of Professional Appraisal Practice. For purposes of appeal of the provisions of this section, the salvage or scrap value of depreciable tangible personal property may only be considered if the property is not in use as of the assessment date.
4. Nothing in this section shall be construed, interpreted, or otherwise used to change the definition or meaning of the term "true value in money", nor shall it be construed, interpreted, or otherwise used to change the use of true value in money as the standard by which tangible personal property is assessed for the purpose of taxation of tangible personal property.
5. This section shall become effective January 1, 2005.