Changes the laws regarding consumer products so that certain individuals and businesses have a right to repair information from certain manufacturers

SECOND REGULAR SESSION HOUSE BILL NO. 2402 103RD GENERAL ASSEMBL Y INTRODUCED BY REPRESENT A TIVE BUSICK. 4765H.01I JOSEPH ENGLER, Chief Clerk AN ACT T o repeal sections 137.010, 137.016, 137.080, 137.1 15, 153.030, and 153.034, RSMo, and to enact in lieu thereof eight new sections relating to ener gy production projects. Be it enacted by the General Assembly of the state of Missouri, as follows: Section A. Sections 137.010, 137.016, 137.080, 137.1 15, 153.030, and 153.034, 2 RSMo, are repealed and eight new sections enacted in lieu thereof, to be known as sections 3 137.010, 137.016, 137.080, 137.1 15, 137.124, 153.030, 153.034, and 393.1 120, to read as 4 follows: 137.010. The following words, terms and phrases when used in laws governing 2 taxation and revenue in the state of Missouri shall have the meanings ascribed to them in this 3 section, except when the context clearly indicates a dif ferent meaning: 4 (1) "Grain and other agricultural crops in an unmanufactured condition" shall mean 5 grains and feeds including, but not limited to, soybeans, cow peas, wheat, corn, oats, barley , 6 kafir , rye, flax, grain sor ghums, cotton, and such other products as are usually stored in grain 7 and other elevators and on farms; but excluding such grains and other agricultural crops after 8 being processed into products of such processing, when packaged or sacked. The term 9 "processing" shall not include hulling, cleaning, drying, grating, or polishing; 10 (2) "Hydroelectric power generating equipment", very-low-head turbine generators 11 with a nameplate generating capacity of at least four hundred kilowatts but not more than six 12 hundred kilowatts and machinery and equipment used directly in the production, generation, 13 conversion, storage, or conveyance of hydroelectric power to land-based devices and 14 appurtenances used in the transmission of electrical ener gy; EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language. 15 (3) "Intangible personal property", for the purpose of taxation, shall include all 16 property other than real property and tangible personal property , as defined by this section; 17 (4) "Real property" includes land itself, whether laid out in town lots or otherwise, 18 and all growing crops, buildings, structures, improvements and fixtures of whatever kind 19 thereon, hydroelectric power generating equipment, the installed poles used in the 20 transmission or reception of electrical ener gy , audio signals, video signals or similar 21 purposes, provided the owner of such installed poles is also an owner of a fee simple interest, 22 possessor of an easement, holder of a license or franchise, or is the beneficiary of a right-of- 23 way dedicated for public utility purposes for the underlying land; attached wires, 24 transformers, amplifiers, substations, and other such devices and appurtenances used in the 25 transmission or reception of electrical ener gy , audio signals, video signals or similar purposes 26 when owned by the owner of the installed poles, otherwise such items are considered personal 27 property; and stationary property used for transportation or storage of liquid and gaseous 28 products, including, but not limited to, petroleum products, natural gas, propane or LP gas 29 equipment, water , and sewage; 30 (5) "Reliever airport", any land and improvements, exclusive of structures, on 31 privately owned airports that qualify as reliever airports under the National Plan of Integrated 32 Airport Systems that may receive federal airport improvement project funds through the 33 Federal A viation Administration; 34 (6) "T angible personal property" includes every tangible thing being the subject of 35 ownership or part ownership whether animate or inanimate, other than money , and not 36 forming part or parcel of real property as herein defined, but does not include household 37 goods, furniture, wearing apparel and articles of personal use and adornment, as defined by 38 the state tax commission, owned and used by a person in his home or dwelling place. 39 T angible personal property shall include solar panels, racking systems, inverters, and related 40 solar equipment, components, materials, and supplies installed in connection with solar 41 photovoltaic ener gy systems, as described in subdivision (46) of subsection 2 of section 42 144.030, [ that were constructed and producing solar ener gy prior to August 9, 2022 ] or 43 associated with a pr oject that uses solar energy dir ectly to generate electricity . 137.016. 1. As used in Section 4(b) of Article X of the Missouri Constitution, the 2 following terms mean: 3 (1) "Residential property", all real property improved by a structure which is used or 4 intended to be used for residential living by human occupants, vacant land in connection with 5 an airport, land used as a golf course, manufactured home parks, bed and breakfast inns in 6 which the owner resides and uses as a primary residence with six or fewer rooms for rent, and 7 time-share units as defined in section 407.600, except to the extent such units are actually 8 rented and subject to sales tax under subdivision (6) of subsection 1 of section 144.020, but HB 2402 2 9 residential property shall not include other similar facilities used primarily for transient 10 housing. For the purposes of this section, "transient housing" means all rooms available for 11 rent or lease for which the receipts from the rent or lease of such rooms are subject to state 12 sales tax pursuant to subdivision (6) of subsection 1 of section 144.020; 13 (2) "Agricultural and horticultural property", all real property used for agricultural 14 purposes and devoted primarily to the raising and harvesting of crops; to the feeding, 15 breeding and management of livestock which shall include breeding, showing, and boarding 16 of horses; to dairying, or to any other combination thereof; and buildings and structures 17 customarily associated with farming, agricultural, and horticultural uses. Agricultural and 18 horticultural property shall also include land devoted to and qualifying for payments or other 19 compensation under a soil conservation or agricultural assistance program under an 20 agreement with an agency of the federal government. Agricultural and horticultural property 21 shall further include any reliever airport. Real property classified as forest croplands shall not 22 be agricultural or horticultural property so long as it is classified as forest croplands and shall 23 be taxed in accordance with the laws enacted to implement Section 7 of Article X of the 24 Missouri Constitution. Agricultural and horticultural property shall also include any sawmill 25 or planing mill defined in the U.S. Department of Labor's Standard Industrial Classification 26 (SIC) Manual under Industry Group 242 with the SIC number 2421. Agricultural and 27 horticultural property shall also include urban and community gardens. For the purposes of 28 this section, "urban and community gardens" shall include real property cultivated by 29 residents of a neighborhood or community for the purposes of providing agricultural 30 products, as defined in section 262.900, for the use of residents of the neighborhood or 31 community , and shall not include a garden intended for individual or personal use; 32 (3) "Utility , industrial, commercial, railroad and other real property", all real property 33 used directly or indirectly for any commercial, mining, industrial, manufacturing, trade, 34 professional, business, or similar purpose, including all property centrally assessed by the 35 state tax commission but shall not include floating docks, portions of which are separately 36 owned and the remainder of which is designated for common ownership and in which no one 37 person or business entity owns more than five individual units. All other real property not 38 included in the property listed in subclasses (1) and (2) of Section 4(b) of Article X of the 39 Missouri Constitution, as such property is defined in this section, shall be deemed to be 40 included in the term "utility , industrial, commercial, railroad and other real property". 41 2. Pursuant to Article X of the state Constitution, any taxing district may adjust its 42 operating levy to recoup any loss of property tax revenue, except revenues from the surtax 43 imposed pursuant to Article X, Subsection 2 of Section 6 of the Constitution, as the result of 44 changing the classification of structures intended to be used for residential living by human 45 occupants which contain five or more dwelling units if such adjustment of the levy does not HB 2402 3 46 exceed the highest tax rate in ef fect subsequent to the 1980 tax year . For purposes of this 47 section, loss in revenue shall include the dif ference between the revenue that would have been 48 collected on such property under its classification prior to enactment of this section and the 49 amount to be collected under its classification under this section. The county assessor of each 50 county or city not within a county shall provide information to each taxing district within its 51 boundaries regarding the dif ference in assessed valuation of such property as the result of 52 such change in classification. 53 3. All reclassification of property as the result of changing the classification of 54 structures intended to be used for residential living by human occupants which contain five or 55 more dwelling units shall apply to assessments made after December 31, 1994. 56 4. Where real property is used or held for use for more than one purpose and such 57 uses result in dif ferent classifications, the county assessor shall allocate to each classification 58 the percentage of the true value in money of the property devoted to each use; except that, 59 where agricultural and horticultural property , as defined in this section, also contains a 60 dwelling unit or units, the farm dwelling, appurtenant residential-related structures and up to 61 five acres immediately surrounding such farm dwelling shall be residential property , as 62 defined in this section, provided that the portion of property used or held for use as an urban 63 and community garden shall not be residential property . This subsection shall not apply to 64 any reliever airport. The pr ovisions of this subsection shall be construed to apply to any 65 portion of real pr operty in subclass (2) used for the purpose of energy prod uction 66 activities for res ale to be prop ortionally calculated, assessed, and r eclassified as subclass 67 (3) rea l pr operty . 68 5. All real property which is vacant, unused, or held for future use; which is used for a 69 private club, a not-for- profit or other nonexempt lodge, club, business, trade, service 70 or ganization, or similar entity; or for which a determination as to its classification cannot be 71 made under the definitions set out in subsection 1 of this section, shall be classified according 72 to its immediate most suitable economic use, which use shall be determined after 73 consideration of: 74 (1) Immediate prior use, if any , of such property; 75 (2) Location of such property; 76 (3) Zoning classification of such property; except that, such zoning classification 77 shall not be considered conclusive if, upon consideration of all factors, it is determined that 78 such zoning classification does not reflect the immediate most suitable economic use of the 79 property; 80 (4) Other legal restrictions on the use of such property; 81 (5) A vailability of water , electricity , gas, sewers, street lighting, and other public 82 services for such property; HB 2402 4 83 (6) Size of such property; 84 (7) Access of such property to public thoroughfares; and 85 (8) Any other factors relevant to a determination of the immediate most suitable 86 economic use of such property . 87 6. All lands classified as forest croplands shall not, for taxation purposes, be 88 classified as subclass (1), subclass (2), or subclass (3) real property , as such classes are 89 prescribed in Section 4(b) of Article X of the Missouri Constitution and defined in this 90 section, but shall be taxed in accordance with the laws enacted to implement Section 7 of 91 Article X of the Missouri Constitution. 137.080. Real estate and tangible personal property shall be assessed annually at the 2 assessment which commences on the first day of January . For purposes of assessing and 3 taxing tangible personal property , all tangible personal property shall be divided into the 4 following subclasses: 5 (1) Grain and other agricultural crops in an unmanufactured condition; 6 (2) Livestock; 7 (3) Farm machinery; 8 (4) V ehicles, including recreational vehicles, but not including manufactured homes, 9 as defined in section 700.010, which are actually used as dwelling units; 10 (5) Manufactured homes, as defined in section 700.010, which are actually used as 11 dwelling units; 12 (6) Motor vehicles which are eligible for registration and are registered as historic 13 motor vehicles under section 301.131; 14 (7) Solar panels, racking systems, inverters, and related solar equipment, components, 15 materials, and supplies installed in connection with solar photovoltaic ener gy systems, as 16 described in subdivision (46) of subsection 2 of section 144.030,[ that were constructed and 17 producing solar ener gy prior to August 9, 2022 ] or associated with a project that uses solar 18 energy dire ctly to generate electricity ; and 19 (8) All taxable tangible personal property not included in subclass (1), subclass (2), 20 subclass (3), subclass (4), subclass (5), subclass (6), or subclass (7). 137.1 15. 1. All other laws to the contrary notwithstanding, the assessor or the 2 assessor's deputies in all counties of this state including the City of St. Louis shall annually 3 make a list of all real and tangible personal property taxable in the assessor's city , county , 4 town or district. Except as otherwise provided in subsection 3 of this section and section 5 137.078, the assessor shall annually assess all personal property at thirty-three and one-third 6 percent of its true value in money as of January first of each calendar year . The assessor shall 7 annually assess all real property , including any new construction and improvements to real 8 property , and possessory interests in real property at the percent of its true value in money set HB 2402 5 9 in subsection 5 of this section. The true value in money of any possessory interest in real 10 property in subclass (3), where such real property is on or lies within the ultimate airport 11 boundary as shown by a federal airport layout plan, as defined by 14 CFR 151.5, of a 12 commercial airport having a F AR Part 139 certification and owned by a political subdivision, 13 shall be the otherwise applicable true value in money of any such possessory interest in real 14 property , less the total dollar amount of costs paid by a party , other than the political 15 subdivision, towards any new construction or improvements on such real property completed 16 after January 1, 2008, and which are included in the above-mentioned possessory interest, 17 regardless of the year in which such costs were incurred or whether such costs were 18 considered in any prior year . The assessor shall annually assess all real property in the 19 following manner: new assessed values shall be determined as of January first of each odd- 20 numbered year and shall be entered in the assessor's books; those same assessed values shall 21 apply in the following even-numbered year , except for new construction and property 22 improvements which shall be valued as though they had been completed as of January first of 23 the preceding odd-numbered year . The assessor may call at the of fice, place of doing 24 business, or residence of each person required by this chapter to list property , and require the 25 person to make a correct statement of all taxable tangible personal property owned by the 26 person or under his or her care, char ge or management, taxable in the county . On or before 27 January first of each even-numbered year , the assessor shall prepare and submit a two-year 28 assessment maintenance plan to the county governing body and the state tax commission for 29 their respective approval or modification. The county governing body shall approve and 30 forward such plan or its alternative to the plan to the state tax commission by February first. 31 If the county governing body fails to forward the plan or its alternative to the plan to the state 32 tax commission by February first, the assessor's plan shall be considered approved by the 33 county governing body . If the state tax commission fails to approve a plan and if the state tax 34 commission and the assessor and the governing body of the county involved are unable to 35 resolve the dif ferences, in order to receive state cost-share funds outlined in section 137.750, 36 the county or the assessor shall petition the administrative hearing commission, by May first, 37 to decide all matters in dispute regarding the assessment maintenance plan. Upon agreement 38 of the parties, the matter may be stayed while the parties proceed with mediation or 39 arbitration upon terms agreed to by the parties. The final decision of the administrative 40 hearing commission shall be subject to judicial review in the circuit court of the county 41 involved. In the event a valuation of subclass (1) real property within any county with a 42 charter form of government, or within a city not within a county , is made by a computer , 43 computer -assisted method or a computer program, the burden of proof, supported by clear , 44 convincing and cogent evidence to sustain such valuation, shall be on the assessor at any 45 hearing or appeal. In any such county , unless the assessor proves otherwise, there shall be a HB 2402 6 46 presumption that the assessment was made by a computer , computer -assisted method or a 47 computer program. Such evidence shall include, but shall not be limited to, the following: 48 (1) The findings of the assessor based on an appraisal of the property by generally 49 accepted appraisal techniques; and 50 (2) The purchase prices from sales of at least three comparable properties and the 51 address or location thereof. As used in this subdivision, the word "comparable" means that: 52 (a) Such sale was closed at a date relevant to the property valuation; and 53 (b) Such properties are not more than one mile from the site of the disputed property , 54 except where no similar properties exist within one mile of the disputed property , the nearest 55 comparable property shall be used. Such property shall be within five hundred square feet in 56 size of the disputed property , and resemble the disputed property in age, floor plan, number of 57 rooms, and other relevant characteristics. 58 2. Assessors in each county of this state and the City of St. Louis may send personal 59 property assessment forms through the mail. 60 3. The following items of personal property shall each constitute separate subclasses 61 of tangible personal property and shall be assessed and valued for the purposes of taxation at 62 the following percentages of their true value in money: 63 (1) Grain and other agricultural crops in an unmanufactured condition, one-half of 64 one percent; 65 (2) Livestock, twelve percent; 66 (3) Farm machinery , twelve percent; 67 (4) Motor vehicles which are eligible for registration as and are registered as historic 68 motor vehicles pursuant to section 301.131 and aircraft which are at least twenty-five years 69 old and which are used solely for noncommercial purposes and are operated less than two 70 hundred hours per year or aircraft that are home built from a kit, five percent; 71 (5) Poultry , twelve percent; 72 (6) T ools and equipment used for pollution control and tools and equipment used in 73 retooling for the purpose of introducing new product lines or used for making improvements 74 to existing products by any company which is located in a state enterprise zone and which is 75 identified by any standard industrial classification number cited in subdivision (7) of section 76 135.200, twenty-five percent; and 77 (7) Solar panels, racking systems, inverters, and related solar equipment, components, 78 materials, and supplies installed in connection with solar photovoltaic ener gy systems, as 79 described in subdivision (46) of subsection 2 of section 144.030, [ that were constructed and 80 producing solar ener gy prior to August 9, 2022 ] or associated with a project that uses solar 81 energy dire ctly to generate electricity , five percent. HB 2402 7 82 4. The person listing the property shall enter a true and correct statement of the 83 property , in a printed blank prepared for that purpose. The statement, after being filled out, 84 shall be signed and either af firmed or sworn to as provided in section 137.155. The list shall 85 then be delivered to the assessor . 86 5. (1) All subclasses of real property , as such subclasses are established in Section 4 87 (b) of Article X of the Missouri Constitution and defined in section 137.016, shall be assessed 88 at the following percentages of true value: 89 (a) For real property in subclass (1), nineteen percent; 90 (b) For real property in subclass (2), twelve percent; and 91 (c) For real property in subclass (3), thirty-two percent. 92 (2) A taxpayer may apply to the county assessor , or , if not located within a county , 93 then the assessor of such city , for the reclassification of such taxpayer's real property if the use 94 or purpose of such real property is changed after such property is assessed under the 95 provisions of this chapter . If the assessor determines that such property shall be reclassified, 96 he or she shall determine the assessment under this subsection based on the percentage of the 97 tax year that such property was classified in each subclassification. 98 6. Manufactured homes, as defined in section 700.010, which are actually used as 99 dwelling units shall be assessed at the same percentage of true value as residential real 100 property for the purpose of taxation. The percentage of assessment of true value for such 101 manufactured homes shall be the same as for residential real property . If the county collector 102 cannot identify or find the manufactured home when attempting to attach the manufactured 103 home for payment of taxes owed by the manufactured home owner , the county collector may 104 request the county commission to have the manufactured home removed from the tax books, 105 and such request shall be granted within thirty days after the request is made; however , the 106 removal from the tax books does not remove the tax lien on the manufactured home if it is 107 later identified or found. For purposes of this section, a manufactured home located in a 108 manufactured home rental park, rental community or on real estate not owned by the 109 manufactured home owner shall be considered personal property . For purposes of this 110 section, a manufactured home located on real estate owned by the manufactured home owner 111 may be considered real property . 112 7. Each manufactured home assessed shall be considered a parcel for the purpose of 113 reimbursement pursuant to section 137.750, unless the manufactured home is deemed to be 114 real estate as defined in subsection 7 of section 442.015 and assessed as a realty improvement 115 to the existing real estate parcel. 116 8. Any amount of tax due and owing based on the assessment of a manufactured 117 home shall be included on the personal property tax statement of the manufactured home 118 owner unless the manufactured home is deemed to be real estate as defined in subsection 7 of HB 2402 8 119 section 442.015, in which case the amount of tax due and owing on the assessment of the 120 manufactured home as a realty improvement to the existing real estate parcel shall be 121 included on the real property tax statement of the real estate owner . 122 9. The assessor of each county and each city not within a county shall use a nationally 123 recognized automotive trade publication such as the National Automobile Dealers' 12 4 Association Of ficial Used Car Guide, Kelley Blue Book, Edmunds, or other similar 125 publication as the recommended guide of information for determining the true value of motor 126 vehicles described in such publication. The state tax commission shall select and make 127 available to all assessors which publication shall be used. The assessor of each county and 128 each city not within a county shall use the trade-in value published in the current October 129 issue of the publication selected by the state tax commission. The assessor shall not use a 130 value that is greater than the average trade-in value in determining the true value of the motor 131 vehicle without performing a physical inspection of the motor vehicle. For vehicles two years 132 old or newer from a vehicle's model year , the assessor may use a value other than average 133 without performing a physical inspection of the motor vehicle. In the absence of a listing for 134 a particular motor vehicle in such publication, the assessor shall use such information or 135 publications that, in the assessor's judgment, will fairly estimate the true value in money of 136 the motor vehicle. For motor vehicles with a true value of less than fifty thousand dollars as 137 of January 1, 2025, the assessor shall not assess such motor vehicle for an amount greater 138 than such motor vehicle was assessed in the previous year , provided that such motor vehicle 139 was properly assessed in the previous year . 140 10. Before the assessor may increase the assessed valuation of any parcel of subclass 141 (1) real property by more than fifteen percent since the last assessment, excluding increases 142 due to new construction or improvements, the assessor shall conduct a physical inspection of 143 such property . 144 1 1. If a physical inspection is required, pursuant to subsection 10 of this section, the 145 assessor shall notify the property owner of that fact in writing and shall provide the owner 146 clear written notice of the owner's rights relating to the physical inspection. If a physical 147 inspection is required, the property owner may request that an interior inspection be 148 performed during the physical inspection. The owner shall have no less than thirty days to 149 notify the assessor of a request for an interior physical inspection. 150 12. A physical inspection, as required by subsection 10 of this section, shall include, 151 but not be limited to, an on-site personal observation and review of all exterior portions of the 152 land and any buildings and improvements to which the inspector has or may reasonably and 153 lawfully gain external access, and shall include an observation and review of the interior of 154 any buildings or improvements on the property upon the timely request of the owner pursuant 155 to subsection 1 1 of this section. Mere observation of the property via a drive-by inspection or HB 2402 9 156 the like shall not be considered suf ficient to constitute a physical inspection as required by 157 this section. 158 13. A county or city collector may accept credit cards as proper form of payment of 159 outstanding property tax or license due. No county or city collector may char ge surcharge for 160 payment by credit card which exceeds the fee or surchar ge char ged by the credit card bank, 161 processor , or issuer for its service. A county or city collector may accept payment by 162 electronic transfers of funds in payment of any tax or license and char ge the person making 163 such payment a fee equal to the fee char ged the county by the bank, processor , or issuer of 164 such electronic payment. 165 14. Any county or city not within a county in this state may , by an af firmative vote of 166 the governing body of such county , opt out of the provisions of this section and sections 167 137.073, 138.060, and 138.100 as enacted by house bill no. 1 150 of the ninety-first general 168 assembly , second regular session and section 137.073 as modified by house committee 169 substitute for senate substitute for senate committee substitute for senate bill no. 960, ninety- 170 second general assembly , second regular session, for the next year of the general 171 reassessment, prior to January first of any year . No county or city not within a county 172 shall exercise this opt-out provision after implementing the provisions of this section and 173 sections 137.073, 138.060, and 138.100 as enacted by house bill no. 1 150 of the ninety-first 174 general assembly , second regular session and section 137.073 as modified by house 175 committee substitute for senate substitute for senate committee substitute for senate bill no. 176 960, ninety-second general assembly , second regular session, in a year of general 17 7 reassessment. For the purposes of applying the provisions of this subsection, a political 178 subdivision contained within two or more counties where at least one of such counties has 179 opted out and at least one of such counties has not opted out shall calculate a single tax rate as 180 in effect prior to the enactment of house bill no. 1 150 of the ninety-first general assembly , 181 second regular session. A governing body of a city not within a county or a county that has 182 opted out under the provisions of this subsection may choose to implement the provisions of 183 this section and sections 137.073, 138.060, and 138.100 as enacted by house bill no. 1 150 of 184 the ninety-first general assembly , second regular session, and section 137.073 as modified by 185 house committee substitute for senate substitute for senate committee substitute for senate bill 186 no. 960, ninety-second general assembly , second regular session, for the next year of general 187 reassessment, by an af firmative vote of the governing body prior to December thirty-first of 188 any year . 189 15. The governing body of any city of the third classification with more than twenty- 190 six thousand three hundred but fewer than twenty-six thousand seven hundred inhabitants 191 located in any county that has exercised its authority to opt out under subsection 14 of this 192 section may levy separate and dif fering tax rates for real and personal property only if such HB 2402 10 193 city bills and collects its own property taxes or satisfies the entire cost of the billing and 194 collection of such separate and dif fering tax rates. Such separate and dif fering rates shall not 195 exceed such city's tax rate ceiling. 196 16. Any portion of real property that is available as reserve for strip, surface, or coal 197 mining for minerals for purposes of excavation for future use or sale to others that has not 198 been bonded and permitted under chapter 444 shall be assessed based upon how the real 199 property is currently being used. Any information provided to a county assessor , state tax 200 commission, state agency , or political subdivision responsible for the administration of tax 201 policies shall, in the performance of its duties, make available all books, records, and 202 information requested, except such books, records, and information as are by law declared 203 confidential in nature, including individually identifiable information regarding a specific 204 taxpayer or taxpayer's mine property . For purposes of this subsection, "mine property" shall 205 mean all real property that is in use or readily available as a reserve for strip, surface, or coal 206 mining for minerals for purposes of excavation for current or future use or sale to others that 207 has been bonded and permitted under chapter 444. 137.124. 1. Beginning January 1, 2027, for purposes of assessing all r eal 2 pr operty , excluding land, associated with a pr oject that uses solar energy directly to 3 generate electricity and that was built or was contracted to sell power , the tax liability 4 actually owed shall be equal to two thousand five hundr ed dollars per megawatt of 5 nameplate capacity . 6 2. Nothing in this section shall be construed to pr ohibit a pr oject from engaging 7 in enhanced enterprise zone agr eements under sections 135.950 to 135.973 or similar tax 8 abatement agreements with state or local officials or to affect any existing enhanced 9 enterprise zone agreements. Nothing in this section shall be construed to apply to 10 agr eements authorized under chapter 100. 11 3. Beginning January 1, 2027, for the purposes of assessing land that is 12 associated with a pr oject that uses solar energy dir ectly to generate electricity in excess 13 of five megawatts, such rea l pr operty shall be classified as subclass (3) r eal pro perty and 14 assessed as commerci al pr operty under this chapter . For the purposes of assessing all 15 tangible personal prop erty associated with a pr oject that uses solar energy dir ectly to 16 generate electricity and that was built or was contracted to sell power , such tangible 17 personal prop erty shall be classified as subclass (7) tangible personal pr operty and 18 assessed as pr ovided under this chapter . 153.030. 1. All bridges over streams dividing this state from any other state owned, 2 used, leased or otherwise controlled by any person, corporation, railroad company or joint 3 stock company , and all bridges across or over navigable streams within this state, where the 4 char ge is made for crossing the same, which are now constructed, which are in the course of HB 2402 1 1 5 construction, or which shall hereafter be constructed, and all property , real and tangible 6 personal, owned, used, leased or otherwise controlled by telegraph, telephone, electric power 7 and light companies, electric transmission lines, pipeline companies and express companies 8 shall be subject to taxation for state, county , municipal and other local purposes to the same 9 extent as the property of private persons. 10 2. [ And ] T axes levied [ thereon ] under subsection 1 of this section shall be levied 11 and collected in the manner as is now or may hereafter be provided by law for the taxation of 12 railroad property in this state, and county commissions, county boards of equalization and the 13 state tax commission are hereby required to perform the same duties and are given the same 14 powers, including punitive powers, in assessing, equalizing and adjusting the taxes on the 15 property set forth in this section as the county commissions and boards of equalization and 16 state tax commission have or may hereafter be empowered with, in assessing, equalizing, and 17 adjusting the taxes on railroad property; and an authorized officer of any such bridge, 18 telegraph, telephone, electric power and light companies, electric transmission lines, pipeline 19 companies, or express company or the owner of any such toll bridge, is hereby required to 20 render reports of the property of such bridge, telegraph, telephone, electric power and light 21 companies, electric transmission lines, pipeline companies, or express companies in like 22 manner as the authorized of ficer of the railroad company is now or may hereafter be required 23 to render for the taxation of railroad property . 24 3. On or before the fifteenth day of April in the year 1946 and each year thereafter an 25 authorized officer of each such company shall furnish the state tax commission and county 26 clerks a report, duly subscribed and sworn to by such authorized of ficer , which is like in 27 nature and purpose to the reports required of railroads under chapter 151 showing the full 28 amount of all real and tangible personal property owned, used, leased or otherwise controlled 29 by each such company on January first of the year in which the report is due. 30 4. If any telephone company assessed pursuant to chapter 153 has a microwave relay 31 station or stations in a county in which it has no wire mileage but has wire mileage in another 32 county , then, for purposes of apportioning the assessed value of the distributable property of 33 such companies, the straight line distance between such microwave relay stations shall 34 constitute miles of wire. In the event that any public utility company assessed pursuant to this 35 chapter has no distributable property which physically traverses the counties in which it 36 operates, then the assessed value of the distributable property of such company shall be 37 apportioned to the physical location of the distributable property . 38 5. (1) Notwithstanding any provision of law to the contrary , beginning January 1, 39 2019, a telephone company shall make a one-time election within the tax year to be assessed: 40 (a) Using the methodology for property tax purposes as provided under this section; 41 or HB 2402 12 42 (b) Using the methodology for property tax purposes as provided under this section 43 for property consisting of land and buildings and be assessed for all other property 44 exclusively using the methodology utilized under section 137.122. 45 46 If a telephone company begins operations, including a mer ger of multiple telephone 47 companies, after August 28, 2018, it shall make its one-time election to be assessed using the 48 methodology for property tax purposes as described under paragraph (b) of subdivision (1) of 49 this subsection within the year in which the telephone company begins its operations. A 50 telephone company that fails to make a timely election shall be deemed to have elected to be 51 assessed using the methodology for property tax purposes as provided under subsections 1 to 52 4 of this section. 53 (2) The provisions of this subsection shall not be construed to change the original 54 assessment jurisdiction of the state tax commission. 55 (3) Nothing in subdivision (1) of this subsection shall be construed as applying to any 56 other utility . 57 (4) (a) The provisions of this subdivision shall ensure that school districts may avoid 58 any fiscal impact as a result of a telephone company being assessed under the provisions of 59 paragraph (b) of subdivision (1) of this subsection. If a school district's current operating levy 60 is below the greater of its most recent voter- approved tax rate or the most recent voter - 61 approved tax rate as adjusted under subdivision (2) of subsection 5 of section 137.073, it shall 62 comply with section 137.073. 63 (b) Beginning January 1, 2019, any school district currently operating at a tax rate 64 equal to the greater of the most recent voter -approved tax rate or the most recent voter- 65 approved tax rate as adjusted under subdivision (2) of subsection 5 of section 137.073 that 66 receives less tax revenue from a specific telephone company under this subsection, on or 67 before January thirty-first of the year following the tax year in which the school district 68 received less revenue from a specific telephone company , may by resolution of the school 69 board impose a fee, as determined under this subsection, in order to obtain such revenue. The 70 resolution shall include all facts that support the imposition of the fee. If the school district 71 receives voter approval to raise its tax rate, the district shall no longer impose the fee 72 authorized in this paragraph. 73 (c) Any fee imposed under paragraph (b) of this subdivision shall be determined by 74 taking the dif ference between the tax revenue the telephone company paid in the tax year in 75 question and the tax revenue the telephone company would have paid in such year had it not 76 made an election under subdivision (1) of this subsection, which shall be calculated by taking 77 the telephone company valuations in the tax year in question, as determined by the state tax 78 commission under paragraph (d) of this subdivision, and applying such valuations to the HB 2402 13 79 apportionment process in subsection 2 of section 151.150. The school district shall issue a 80 billing, as provided in this subdivision, to any such telephone company . A telephone 81 company shall have forty-five days after receipt of a billing to remit its payment of its portion 82 of the fees to the school district. Notwithstanding any other provision of law , the issuance or 83 receipt of such fee shall not be used: 84 a. In determining the amount of state aid that a school district receives under section 85 163.031; 86 b. In determining the amount that may be collected under a property tax levy by such 87 district; or 88 c. For any other purpose. 89 90 For the purposes of accounting, a telephone company that issues a payment to a school 91 district under this subsection shall treat such payment as a tax. 92 (d) When establishing the valuation of a telephone company assessed under 93 paragraph (b) of subdivision (1) of this subsection, the state tax commission shall also 94 determine the dif ference between the assessed value of a telephone company if: 95 a. Assessed under paragraph (b) of subdivision (1) of this subsection; and 96 b. Assessed exclusively under subsections 1 to 4 of this section. 97 98 The state tax commission shall then apportion such amount to each county and provide such 99 information to any school district making a request for such information. 100 (e) This subsection shall expire when no school district is eligible for a fee. 101 6. (1) If any public utility company assessed pursuant to this chapter has ownership 102 of any real or personal property associated with a project which uses solar or wind ener gy 103 directly to generate electricity , such solar or wind ener gy project property shall be valued and 104 taxed by any local authorities having jurisdiction under the provisions of chapter 137 and 105 other relevant provisions of the law . 106 (2) Notwithstanding any provision of law to the contrary , beginning January 1, 2020, 107 for any public utility company assessed pursuant to this chapter which has a wind ener gy 108 project, such wind ener gy project shall be assessed using the methodology for real and 109 personal property as provided in this subsection: 110 (a) Any wind ener gy property of such company shall be assessed upon the county 111 assessor's local tax rolls; and 112 (b) All other real property , excluding land, or personal property related to the wind 113 ener gy project shall be assessed using the methodology provided under section 137.123. 114 (3) Notwithstanding any other pr ovision of law to the contrary , beginning 115 January 1, 2027, for any public utility company assessed under this chapter that has a HB 2402 14 116 solar energy project , such solar energy pr oject shall be assessed using the methodology 117 for real and personal pr operty as prov ided in this subsection: 118 (a) Any solar energy pr operty of such company shall be assessed upon the 119 county assessor's local tax ro lls; and 120 (b) All other real pr operty , excluding land, or personal pr operty relat ed to the 121 solar energy pr oject shall be assessed using the methodology pro vided under section 122 137.124. 123 124 Nothing in this subdivision shall be construed to apply to agreemen ts authorized under 125 chapter 100. 126 7. (1) If any public utility company assessed pursuant to this chapter has ownership 127 of any real or personal property associated with a generation project which was originally 128 constructed utilizing financing authorized pursuant to chapter 100 for construction, upon the 129 transfer of ownership of such property to the public utility company such property shall be 130 valued and taxed by any local authorities having jurisdiction under the provisions of chapter 131 137 and other relevant provisions of law . 132 (2) Notwithstanding any provision of law to the contrary , beginning January 1, 2022, 133 for any public utility company assessed pursuant to this chapter which has ownership of any 134 real or personal property associated with a generation project which was originally 135 constructed utilizing financing authorized pursuant to chapter 100 for construction, upon the 136 transfer of ownership of such property to the public utility company such property shall be 137 assessed as follows: 138 (a) Any property associated with a generation project which was originally 139 constructed utilizing financing authorized pursuant to chapter 100 for construction shall be 140 assessed upon the county assessor's local tax rolls. The assessor shall rely on the public utility 141 company for cost information of the generation portion of the property as found in the public 142 utility company's Federal Energ y Regulatory Commission Financial Report Form Number 143 One at the time of transfer of ownership, and depreciate the costs provided in a manner 144 similar to other commercial and industrial property; 145 (b) Any property consisting of land and buildings related to the generation property 146 associated with a generation project which was originally constructed utilizing financing 147 pursuant to chapter 100 for construction shall be assessed under chapter 137; and 148 (c) All other business or personal property related to a generation project which was 149 originally constructed utilizing financing pursuant to chapter 100 for construction shall be 150 assessed using the methodology provided under section 137.122. 153.034. 1. The term "distributable property" of an electric company shall include all 2 the real or tangible personal property which is used directly in the generation and distribution HB 2402 15 3 of electric power , but not property used as a collateral facility nor property held for purposes 4 other than generation and distribution of electricity . Such distributable property includes, but 5 is not limited to: 6 (1) Boiler plant equipment, turbogenerator units and generators; 7 (2) Station equipment; 8 (3) T owers, fixtures, poles, conductors, conduit transformers, services and meters; 9 (4) Substation equipment and fences; 10 (5) Rights-of-way; 11 (6) Reactor , reactor plant equipment, and cooling towers; 12 (7) Communication equipment used for control of generation and distribution of 13 power; 14 (8) Land associated with such distributable property . 15 2. The term "local property" of an electric company shall include all real and tangible 16 personal property owned, used, leased or otherwise controlled by the electric company not 17 used directly in the generation and distribution of power and not defined in subsection 1 of 18 this section as distributable property . Such local property includes, but is not limited to: 19 (1) Motor vehicles; 20 (2) Construction work in progress; 21 (3) Materials and supplies; 22 (4) Office furniture, of fice equipment, and of fice fixtures; 23 (5) Coal piles and nuclear fuel; 24 (6) Land held for future use; 25 (7) W orkshops, warehouses, office buildings and generating plant structures; 26 (8) Communication equipment not used for control of generation and distribution of 27 power; 28 (9) Roads, railroads, and bridges; 29 (10) Reservoirs, dams, and waterways; 30 (1 1) Land associated with other locally assessed property and all generating plant 31 land. 32 3. (1) Any real or tangible personal property associated with a project which uses 33 solar or wind ener gy directly to generate electricity shall be valued and taxed by local 34 authorities having jurisdiction under the provisions of chapter 137 and any other relevant 35 provisions of law . The method of taxation prescribed in subsection 2 of section 153.030 and 36 subsection 1 of this section shall not apply to such property . 37 (2) The real or tangible personal property referenced in subdivision (1) of this 38 subsection shall include all equipment whose sole purpose is to support the integration of a 39 wind generation asset into an existing system. Examples of such property may include, but HB 2402 16 40 are not limited to, wind char gers, windmills, wind turbines, wind towers, and associated 41 electrical equipment such as inverters, pad mount transformers, power lines, storage 42 equipment directly associated with wind generation assets, and substations. 43 (3) The r eal or tangible personal pr operty ref erenced in subdivision (1) of this 44 subsection shall also include all equipment whose sole purpose is to support the 45 integration of a solar generation asset into an existing system. Examples of such 46 pr operty may include, but are not limited to, solar panels, solar panel mounting racks, 47 and associated electrical equipment such as inverters, battery packs, power meters, 48 power lines, storage equipment dir ectly associated with solar generation assets, and 49 substations. Nothing in this subdivision shall be construed to apply to agr eements 50 authorized under chapter 100 or to solar photovoltaic energy systems, as described in 51 subdivision (46) of subsection 2 of section 144.030, that wer e constructed and pr oducing 52 solar energy prior to August 9, 2022. 53 4. For any real or tangible personal property associated with a generation project 54 which was originally constructed utilizing financing authorized under chapter 100 for 55 construction, upon the transfer of ownership of such property to a public utility , such property 56 shall be valued and taxed by local authorities having jurisdiction under the provisions of 57 chapter 137 and any other relevant provisions of law . The method of taxation prescribed in 58 subsection 2 of section 153.030 and subsection 1 of this section shall not apply to such 59 property . 393.1 120. 1. A county commission may choose to opt in to a pr ovision to limit the 2 total amount of r eal prop erty associated with all solar energy pr ojects that are 3 established in a county not to exceed an amount gr eater than four percen t of all 4 cr opland in such county , as determined by the most recent U.S. Department of 5 Agricultur e's Census of Agricultur e. Acres owned by utilities or electrical corporations 6 shall be exempt fr om the four -per cent county calculation. The acreag e shall be 7 determined by the perimeter of the actual solar panels. A county commission adopting 8 the four -per cent limit option allowed under this subsection shall set up the proced ures 9 for solar companies to apply under the opt in and shall administer its compliance with a 10 severability clause. 11 2. For the purpose of setbacks and the four -per cent limit, the opt in order or 12 ordinance shall be adopted upon a majority vote of the county commission and shall also 13 contain language rel ating to setback distances. If a county utilizes planning and zoning, 14 the local planning and zoning rules shall supersede these pr ovisions of the law . 15 3. For all solar energy pro jects built on or after January 1, 2027, such pr oject 16 shall be subject to setback distances of at least five hundr ed feet fr om the near est 17 occupied dwelling, chur ch, or school in existence at the time of construction, as HB 2402 17 18 measur ed fr om the near est solar panel to the near est occupied dwelling, chur ch, or 19 school. Such distances shall not apply to homeowners who have recei ved a written 20 agr eement between the project and the pro perty owners that has been signed by all 21 affected prop erty owners within the setback distance. This subsection shall not apply to 22 solar energy projects built and operating at capacity on or before December 31, 2025. 23 4. A solar energy company shall secur e, thr ough pur chase or contract, all 24 pr operty rights or easements necessary for transmission and inter connection for the 25 solar energy project to connect to the electrical grid prior to beginning construction of 26 the solar energy pro ject. 27 5. Nothing in this section shall be construed to apply to agreements authorized 28 under chapter 100. ✔ HB 2402 18