HCS HB 461 -- ASSESSMENT OF PROPERTY

This bill changes the laws regarding property assessment.  In its
main provisions, the bill:

(1)  Clarifies that the expenses incurred by the assessor or
assessor-elect for attending study courses paid by the state are
subject to appropriation (Section 53.260, RSMo);

(2)  Authorizes the homestead exemption tax credit; prohibits a
claimant from receiving the homestead exemption credit in a year
following the year in which the claimant received the property
tax credit; extends the homestead exemption credit to property
owned in trust; and provides an exception to the disqualification
for improvements made to property which exceed 5% of the prior
year's appraised value for improvements made to accommodate a
disabled person for applications filed after 2005.  The homestead
exemption limit for claims filed in 2005 and 2006 will be based
on the increase in tax liability from 2004 to 2005.  Currently,
the homestead exemption is based on the increase to tax liability
from the prior year.  The bill moves this back an additional
year.  An eligible owner who otherwise satisfies the requirements
for receiving a homestead exemption will not apply for the credit
more than once during the period ranging from April 1, 2005, to
September 30, 2006.  If the collector of a county determines that
an individual is ineligible prior to issuing the credit, the
credit will be void and any corresponding moneys will lapse to
the state to be credited to the General Revenue Fund.  After
2005, the 0.25% distributed to the county assessment funds is
terminated (Sections 135.010 and 137.106);

(3)  Removes the 30-day time requirement for the State Auditor to
promulgate rules once the section is enacted (Section 137.073);

(4)  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 (Section
137.078);

(5)  Requires each taxing authority, for tax rate setting
purposes, to exclude from its total assessed valuation 72% of the
total amount of business personal property that is the subject of
an appeal with 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 (Section 173.079);

(6)  Defines "business personal property" 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
bill 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.  This section of the bill does not apply to
business personal property placed in service before January 2,
2006 (Section 137.122); and

(7)  Exempts motor vehicles leased for a period of one year or
more to a religious, educational, or charitable organization from
state, county, and local taxation (Section 137.100).

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