SB 768 - This act modifies several provisions relating to the taxation of telecommunications companies.
PROPERTY TAX ASSESSMENT OF TELEPHONE COMPANIES
Beginning January 1, 2019, this act allows telephone companies to make a one-time election of whether to have their property assessed in the same manner as railroads, as in current law, or in the same manner as railroads for property consisting of land and buildings and under a depreciation schedule for all other forms of property, as described in the act.
If a school district whose operating levy is at the tax rate ceiling receives less tax revenue from a specific telephone company as a result of such telephone company selecting the alternate assessment method, it may by resolution impose a fee to be paid by the telephone company until such time as the school district receives voter approval to raise its tax operating levy. The fee shall be calculated as described in the act. A school district's receipt of such fee shall not be used in determining the amount of state aid that a district receives under the school foundation formula, in determining the amount that may be collected under a property tax levy, or for any other purpose.
The provisions of this act shall expire when no school district is eligible to collect a fee. (Section 153.030)
The State Tax Commission shall include information in its annual report on the difference in assessed value for any telephone company that is assessed under the provisions of this act. The Commissioner of Education shall transmit such information to each school district. (Section 138.445)
These provisions are identical to HB 1464 (2018), are substantially similar to SB 257 (2017), HCS/HB 142 (2017), and HCS/HB 1898 (2016), and are similar to SB 305 (2015) and HCS/HB 857 (2015), and to provisions contained in SCS/HCS/HB 299 (2015) and SS/SB 339 (2015).
SALES TAX EXEMPTIONS FOR TELECOMMUNICATIONS SERVICES
This act provides that, for the purposes of sales and use tax exemptions for certain manufacturing and the use or consumption of energy for manufacturing, the term "product" shall include telecommunications services and the term "manufacturing" shall include the production, or production and transmission, of telecommunications service.
This act also provides that such definitions were the original legislative intent and abrogates the Missouri Supreme Court's decision in IBM Corporation v. Director of Revenue, 491 S.W.3d 535 (Mo. banc 2016) to the extent that such decision is inconsistent with such definitions and the Court's decisions in DST Systems, Inc. v. Director of Revenue, 43 S.W.3d 799 (Mo. banc 2001), Southwestern Bell Tel. Co. v. Director of Revenue, 78 S.W.3d 763 (Mo. banc 2002), and Southwestern Bell Tel. Co. v. Director of Revenue, 182 S.W.3d 226 (Mo. banc 2005). (Sections 144.030 and 144.054)
These provisions are identical to HCS#2/HB 1802 (2018), are substantially similar to SB 625 (2018), and are similar to HB 2149 (2018), SB 247 (2017), HB 682 (2017), and to a provision contained in HB 992 (2017).