HCS HB 461 -- ASSESSMENT OF BUSINESS PERSONAL PROPERTY
(Sutherland)

COMMITTEE OF ORIGIN:  Ways and Means

This substitute adds studio broadcast equipment, transmitter and
antenna equipment, and broadcast towers to the property tax
depreciation schedules for broadcasting equipment.  Depreciation
tables are established to determine the true value in money of
television broadcasting equipment beginning January 1, 2008, and
radio broadcasting equipment beginning January 1, 2006.

For tax rate setting purposes, the substitute requires each
taxing authority to exclude from its total assessed valuation 72%
of the total amount of business personal property that is the
subject of an appeal at the State Tax Commission or in a court.
This exclusion will only apply to the portion of property that is
disputed in the appeal.  If the taxing authority uses a
multi-rate approach, this exclusion is made from the personal
property class.

The commission will provide the total assessed value for which an
appeal is pending no later than August 20 of each year.  Whenever
an appeal is resolved and the result causes money to be paid to
the authority, the taxing authority is not required to make an
additional adjustment to its rates during the same fiscal cycle
once the deadline for setting rates has passed.  However, the
taxing authority will adjust its rates due to the payment in the
next rate setting cycle to offset the payment in the next taxable
year.

"Business personal property" is defined as tangible personal
property used in a trade or business or used to produce income
and has a determinable life of longer than one year, with some
exceptions.  In order to establish uniformity, each assessor will
use the standardized schedule of depreciation established in the
substitute to determine the assessed valuation of depreciable
tangible personal property.  Each assessor will value depreciable
tangible personal property by applying the class life and
recovery period to the original cost of the property according to
the federal Modified Accelerated Cost Recovery System life
tables.  The estimated value of property determined using the
life tables is presumed to be correct; however, an estimation may
be disproved by substantial and persuasive evidence of the true
value under any method approved by the commission.  These methods
include appraisal using accepted techniques in accordance with
the Uniform Standards of Professional Appraisal Practice or by
proof of functional or economic obsolescence or physical
deterioration.  The salvage or scrap value of depreciable
tangible personal property may only be considered if the property
is not in use on the assessment date.

The substitute does not apply to business personal property
placed in service before January 2, 2006.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm