HB 304 -- Property Taxation of Freight Line Companies

Sponsor:  Skaggs

This bill establishes a new procedure for the taxation and
disposition of taxes on freight line companies for purposes of
property taxation.

The bill requires the State Tax Commission to centrally assess,
adjust, and equalize the property of all railroad or street
railway companies located wholly or partially in this state.
All railroad or street railway companies must annually file with
the commission reports stating the main line track mileage of
the company in operation within each county of the state as of
December 31 of each year, the total mileage traveled on their
track by railroad cars, and any other information required by
the commission.

The commission will ascertain from the reports the average
property tax rate levied during the reporting year on all
railroad or street railway companies by political subdivisions
and report the average and the taxable assessed valuation of
each freight line company to the state Director of Revenue.

The director will levy and collect the taxes on the freight line
companies using the average tax rate reported and certified by
the commission.  All moneys collected by the director from the
taxation of freight line companies, less a collection fee and
transfer of funds to the Blind Pension Fund, will be deposited
into a special non-state trust fund.  The director will
distribute the moneys to the counties based on their pro rata
share of track mileage and other considerations as it relates to
the total track mileage and other considerations of the entire
state.

Each county, upon receipt of the funds from the Director of
Revenue, shall apportion 70% of the funds to school districts
within the county and deposit the remaining 30% in their county
general revenue fund.

The bill also sets out provisions related to the assessment,
adjustment, and equalization of freight line companies by the
State Tax Commission and establishes a process for review of the
findings of the commission with the freight line companies.

If all or any portion of this act is found not enforceable by a
court of competent jurisdiction, the procedure under current law
for the assessment and taxation of freight line companies will
take effect without any further action of the General Assembly.