HCS/HB 461 - The act 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. This act does not apply to business personal property placed in service before January 2, 2006. A tax exemption is created for motor vehicles leased for a period of at least one year to any religious, educational, or charitable organization which has obtained an exemption from the payment of federal income taxes, provided such vehicles are used exclusively for religious, educational, or charitable purposes.
Property of rural electric cooperatives under chapter 394, RSMo is exempted from the definition of business personal property.
A claimant is prohibited from receiving the homestead exemption credit in a year following the year in which the claimant received the property tax credit. Eligibility is for the homestead exemption tax credit is extended to property owned in trust. The trust may receive a credit, provided the prior owner meets all other requirements and such owners income is imputed to the trust for purposes of determining qualification under the maximum upper limit.
An exception is created to the disqualification for improvements made to property which exceed five percent of the prior years 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 shall be based on the increase in tax liability from 2004 to 2005. An eligible owner who otherwise satisfies the requirements for receiving a homestead exemption shall not apply for the credit more than once during the period ranging from April 1, 2005 to September 30, 2006. Current law bases the homestead exemption on the increase to tax liability from the prior year. The amendment moves this back an additional year.
In the event collector of the county determines that an individual is ineligible prior to issuing the credit, the credit shall be void and any corresponding moneys shall lapse to the state to be credited to the general revenue fund. After 2005, the one-quarter of one percent distributed to the county assessment funds is terminated.
The requirement that the rules promulgated by the state auditor, for any and all forms for the calculation of rates which currently do not exist, shall be promulgated within thirty days of the effective date of the statute has been removed.
The payment of expenses, incurred by an assessor in attending courses of study referred to in sections 53.250 to 53.265 RSMo, by the state, will now be subject to appropriation.
JASON ZAMKUS