FIRST REGULAR SESSION
93RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE SUTHERLAND.
Read 1st time Match 16, 2005 and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
AN ACT
To repeal section 137.078, RSMo, and to enact in lieu thereof one new section relating to property tax depreciation schedules for broadcasting equipment.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 137.078, RSMo, is repealed and one new section enacted in lieu thereof, to be known as section 137.078, to read as follows:
137.078. 1. For purposes of this section, the following terms shall mean:
(1) "Analog equipment", all depreciable items of tangible personal property that are used directly or indirectly in broadcasting television shows [and], radio programs, and/or commercials through the use of analog technology, including studio broadcast equipment, tower transmission and antenna equipment, and broadcast towers;
(2) "Applicable analog fraction", a fraction, the numerator of which is the total number of analog television sets in the United States for the immediately preceding calendar year and the denominator of which is an amount representing the total combined number of analog and digital television sets in the United States for the immediately preceding calendar year. The applicable analog fraction will be determined on an annual basis by the Missouri Broadcasters Association;
(3) "Applicable analog percentage", the following percentages for the following years:
Year 2004 2005 2006 2007
of Acquisition Tax Year Tax Year Tax Year Tax Year
1%
2006 1%
2005 25% 1%
2004 50% 25% 1%
2003 75% 50% 25% 1%
2002 75% 50% 25% 1%
2001 75% 50% 25% 1%
2000 75% 50% 25% 1%
1999 75% 50% 25% 1%
1998 75% 50% 25% 1%
Prior 75% 50% 25% 1%;
(4) "Applicable digital fraction", a fraction, the numerator of which is the total number of digital television sets in the United States for the immediately preceding calendar year and the denominator of which is an amount representing the total combined number of analog and digital television sets in the United States for the immediately preceding calendar year. The applicable digital fraction will be determined on an annual basis by the Missouri Broadcasters Association;
(5) "Broadcast tower", a structure with a function that includes holding television or radio broadcasters' antennae, repeaters, and/or translators at the height required or needed to transmit over-the-air signals or, as in the case of an AM radio station, are part of the transmission of the signals. Broadcast tower also includes a structure at least partially used by television broadcasters or radio broadcasters to provide weather radar information to the viewing public. For property assessment purposes, a broadcast tower is classified as tangible personal property;
(6) "Digital equipment", all depreciable items of tangible personal property that are used directly or indirectly in broadcasting television shows [and], radio programs, and/or commercials through the use of digital technology, including studio broadcast equipment, tower transmission and antenna equipment, and broadcast towers;
(7) "Radio broadcaster", any business that owns, leases, or operates a radio broadcasting station that transmits radio shows and commercials and that is required to be licensed by the Federal Communications Commission to provide such services;
(8) "Radio broadcasting equipment", both analog equipment and digital equipment;
[(6)] (9) "Television broadcasters", all businesses that own, lease, or operate television broadcasting stations that transmit television shows and commercials and that are required to be licensed by the Federal Communications Commission to provide such services;
[(7)] (10) "Television broadcasting equipment", both analog equipment and digital equipment;
(11) "Tower transmission and antenna equipment", equipment with functions that include transmitting signals from broadcast studios by increasing the power, tuning signals to the frequency allowed by regulatory authorities, and broadcasting signals to the public for television broadcasters or radio broadcasters;
(12) "Studio broadcast equipment", studio equipment that receives, produces, modifies, controls, measures, modulates, adds to or subtracts from, or enhances signals in the process that results in over-the-air signals for television broadcasters or radio broadcasters.
2. In response to recent action by the Federal Communications Commission, as described by the commission in the fifth report and order, docket number 97-116, for purposes of assessing all items of television broadcasting equipment that are owned and used by television broadcasters for purposes of broadcasting television shows and commercials:
(1) The true value in money of all analog equipment shall be determined by depreciating the historical cost of such property using the depreciation tables provided in subdivision (1) of subsection 3 of this section and multiplying the results by the applicable analog percentage. The result of the second computation is multiplied by the applicable analog fraction to determine the true value in money of the analog equipment; and
(2) The true value in money of all digital equipment shall be determined by depreciating the historical cost of such property using the depreciation tables provided in subdivision (2) of subsection 3 of this section and multiplying the results by the applicable digital fraction to determine the true value in money of the digital equipment.
3. For purposes of subsection 2 of this section, the depreciation tables for determining the fair value in money of television broadcasting equipment are as follows:
(1) For analog equipment, the following depreciation tables will apply for the following years:
Year 2004 2005 2006 2007
of Acquisition Tax Year Tax Year Tax Year Tax Year
2006 65%
2005 65% 45%
2004 65% 45% 30%
2003 65% 45% 30% 20%
2002 45% 30% 20% 10%
2001 30% 20% 10% 5%
2000 20% 10% 5% 5%
1999 10% 5% 5% 5%
1998 5% 5% 5% 5%
Prior 5% 5% 5% 5%;
(2) For digital equipment, the following depreciation tables will apply for the following years:
2004 2005 2006 2007
Year of Acquisition Tax Year Tax Year Tax Year Tax Year
2006 65%
2005 65% 45%
2004 65% 45% 30%
2003 65% 45% 30% 20%
2002 45% 30% 20% 10%
2001 30% 20% 10% 5%
2000 20% 10% 5% 5%
1999 10% 5% 5% 5%
1998 5% 5% 5% 5%
Prior 5% 5% 5% 5%.
4. Beginning January 1, 2008, for purposes of assessing all items of television broadcasting equipment that are owned and used by television broadcasters for purposes of broadcasting television shows and commercials, the following depreciation tables shall be used to determine their true value in money:
Year Studio Broadcast Tower Transmission Broadcast Tower
Equipment and Antenna Equipment
1 65% 91% 96%
2 45% 82% 93%
3 30% 73% 89%
4 20% 64% 86%
5 10% 55% 82%
6 5% 46% 79%
7 37% 75%
8 28% 72%
9 19% 68%
10 10% 65%
11 61%
12 58%
13 54%
14 51%
15 47%
16 44%
17 40%
19 33%
20 30%
21 27%
22 24%
23 21%
24 18%
25 15%
5. Beginning January 1, 2006, for purposes of assessing all items of radio broadcasting equipment that are owned and used by radio broadcasters for purposes of broadcasting radio programs and commercials, the following depreciation tables shall be used to determine their true value in money:
Year Studio Broadcast Tower Transmission Broadcast Tower
Equipment and Antenna Equipment
1 65% 91% 96%
2 45% 82% 93%
3 30% 73% 89%
4 20% 64% 86%
5 10% 55% 82%
6 5% 46% 79%
7 37% 75%
8 28% 72%
9 19% 68%
10 10% 65%
11 61%
12 58%
13 54%
14 51%
15 47%
16 44%
17 40%
19 33%
20 30%
21 27%
22 24%
23 21%
24 18%
25 15%