HB 2709 — Modifies provisions governing the taxation of property

SECOND REGULAR SESSION HOUSE COMMITTEE SUBSTITUTE FOR HOUSE BILL NO.NOS.

2709 & 2671 103RD GENERAL ASSEMBLY INTRODUCED3917H.02C BYJOSEPH REPRESENTATIVEENGLER, REEDY.Chief Clerk AN ACT To repeal sections 137.073, 137.079, 137.115, and 164.121, RSMo, and to enact in lieu thereof five new sections relating to taxation of property.

3917H.01I JOSEPH ENGLER, Chief Clerk AN ACT To repeal sections 137.073, 137.079, 137.115, and 164.121, RSMo, and to enact in lieu thereof five new sections relating to taxation of property.

except that, other provisions of law to the contrary notwithstanding, a school district may levy the operating levy for school purposes required for the current year pursuant to subsection 2 of section 163.021, less all adjustments required pursuant to Article X, Section 22 of the Missouri EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law.

HBHCS HBs 2709 2& 163.021,2671 less2 all adjustments required pursuant to Article X, Section 22 of the Missouri Constitution, if such tax rate does not exceed the highest tax rate in effect subsequent to the 1980 tax year.

All political subdivisions shall immediately revise the applicable rates of levy for each purpose for each subclass of real property, individually, and personal property, in the aggregate, for which taxes are levied to the extent necessary to produce from all taxable property, exclusive of new construction and improvements, substantially the same amount of tax revenue as was produced in the previous year for each subclass of real property, individually, and personal property, in the aggregate, except that the rate shall not exceed the greater of the most recent voter-approved rate or the most recent voter-approved rate as adjusted under subdivision (2) of subsection 5 of this HB 2709 3 section.

Any political subdivision that has received approval from voters for a tax increase HCS HBs 2709 & 2671 3 after August 27, 2008, may levy a rate to collect substantially the same amount of tax revenue as the amount of revenue that would have been derived by applying the voter-approved increased tax rate ceiling to the total assessed valuation of the political subdivision as most recently certified by the city or county clerk on or before the date of the election in which such increase is approved, increased by the percentage increase in the consumer price index, as provided by law, except that the [rate] rates of levy for each subclass of real property, individually, and personal property, in the aggregate, shall not exceed the greater of the most recent voter-approved rate or the most recent voter-approved rate as adjusted under subdivision (2) of subsection 5 of this section.

Such revision in the tax rates of each class or subclass shall be made by computing the percentage of current year adjusted assessed valuation of each class or subclass with a tax rate reduction to the total current year adjusted assessed valuation of the class or subclasses with a tax rate reduction, multiplying the resulting percentages by the revenue difference HB 2709 4 between the single rate calculation and the calculations pursuant to this subsection and HCS HBs 2709 & 2671 4 dividing by the respective adjusted current year assessed valuation of each class or subclass to determine the adjustment to the rate to be levied upon each class or subclass of property.

Such revision by the political subdivision shall be made at the time of the next calculation of the tax rate for the particular subclass of HB 2709 5 real property or for personal property, in the aggregate, after the reduction in assessed HCS HBs 2709 & 2671 5 valuation has been determined and shall be calculated in a manner that results in the revised tax rate ceiling being the same as it would have been had the corrected or finalized assessment been available at the time of the prior calculation;

The state tax commission shall certify the increase in such index on the latest twelve-month basis HB 2709 6 available on February first of each year over the immediately preceding prior twelve-month HCS HBs 2709 & 2671 6 period in order that political subdivisions shall have this information available in setting their tax rates according to law and Section 22 of Article X of the Constitution of Missouri.

The increased tax rate ceiling as approved shall be adjusted such that when applied to the current total assessed valuation of the political subdivision, excluding new construction and improvements since the date of the election approving such increase, HB 2709 7 the revenue derived from the adjusted tax rate ceiling is equal to the sum of:

the amount of HCS HBs 2709 & 2671 7 revenue which would have been derived by applying the voter-approved increased tax rate ceiling to total assessed valuation of the political subdivision, as most recently certified by the city or county clerk on or before the date of the election in which such increase is approved, increased by the percentage increase in the consumer price index, as provided by law.

[(4)] (5) In a year of general reassessment, a governing body whose tax rate is lower than its tax rate ceiling shall revise its tax rate pursuant to the provisions of subsection 4 of HB 2709 8 this section as if its tax rate was at the tax rate ceiling.

In a year following general HCS HBs 2709 & 2671 8 reassessment, if such governing body intends to increase its tax rate, the governing body shall conduct a public hearing, and in a public meeting it shall adopt an ordinance, resolution, or policy statement justifying its action prior to setting and certifying its tax rate.

Where the taxing authority is a school district, such blended rate shall also be used by such HB 2709 9 school district for calculating revenue from state-assessed railroad and utility property as defined in chapter 151 and for apportioning the tax rate by purpose.

HCS HBs 2709 & 2671 9 (2) Each taxing authority proposing to levy a tax rate in any year shall notify the clerk of the county commission in the county or counties where the tax rate applies of its tax rate ceiling and its proposed tax rate.

A copy of the taxing authority's acceptance or rejection and any information HB 2709 10 submitted to the state auditor shall also be mailed to the county clerk.

If a taxing authority rejects a rate change certified by the state auditor and the state auditor does not receive HCS HBs 2709 & 2671 10 supporting information which justifies the taxing authority's original or any subsequent proposed tax rate, then the state auditor shall refer the perceived violations of such taxing authority to the attorney general's office and the attorney general is authorized to obtain injunctive relief to prevent the taxing authority from levying a violative tax rate.

HB 2709 11 9.

If in any action, including a class action, the court issues an order requiring a taxing authority to revise the tax rates as provided in this section or enjoins a taxing authority from the collection of a tax because of its failure to revise the rate of levy as provided in this HCS HBs 2709 & 2671 11 section, any taxpayer paying his or her taxes when an improper rate is applied has erroneously paid his or her taxes in part, whether or not the taxes are paid under protest as provided in section 139.031 or otherwise contested.

Whenever any appeal is resolved, whether by final adjudication or settlement, and the result of the appeal causes money to be paid to the taxing authority, the taxing authority shall not be required to make an additional adjustment to its rate or rates due to such payment once the deadline for setting its rates, as provided by this chapter, has passed in a taxable year, but shall adjust its rate or rates due to HB 2709 12 such payment in the next rate setting cycle to offset the payment in the next taxable year.

For the purposes of this section, the term "business personal property" means tangible personal property which is used in a trade or business or used for production of income and which has HCS HBs 2709 & 2671 12 a determinable life of longer than one year except that supplies used by a business shall also be considered business personal property, but shall not include livestock, farm machinery, property subject to the motor vehicle registration provisions of chapter 301, property subject to the tables provided in section 137.078, the property of rural electric cooperatives under chapter 394, or property assessed by the state tax commission under chapters 151, 153, and 155, section 137.022, and sections 137.1000 to 137.1030.

On or before January first of each even-numbered year, the assessor shall prepare and submit a two-year assessment maintenance plan to the county governing body and the state tax commission for HB 2709 13 their respective approval or modification.

If the county governing body fails to forward the plan or its alternative to the plan to the state HCS HBs 2709 & 2671 13 tax commission by February first, the assessor's plan shall be considered approved by the county governing body.

HB 2709 14 (3) Farm machinery, twelve percent;

(4) Motor vehicles which are eligible for registration as and are registered as historic motor vehicles pursuant to section 301.131 and aircraft which are at least twenty-five years HCS HBs 2709 & 2671 14 old and which are used solely for noncommercial purposes and are operated less than two hundred hours per year or aircraft that are home built from a kit, five percent;

If the county collector cannot identify or find the manufactured home when attempting to attach the manufactured home for payment of taxes owed by the manufactured home owner, the county collector may HB 2709 15 request the county commission to have the manufactured home removed from the tax books, and such request shall be granted within thirty days after the request is made;

however, the removal from the tax books does not remove the tax lien on the manufactured home if it is HCS HBs 2709 & 2671 15 later identified or found.

HB 2709 16 10.

HCS HBs 2709 & 2671 16 11.

960, ninety-second general assembly, second regular session, in a year of general HB 2709 17 reassessment.

1150 of the ninety-first general assembly, HCS HBs 2709 & 2671 17 second regular session.

HB 2709 18 (4) Building additions to or repairing old buildings;

(6) Paying off and discharging assessments made by counties, cities, towns and villages or other political subdivisions or public corporations of the state against the district in HCS HBs 2709 & 2671 18 connection with the erection, construction and maintenance of sewers and sewer systems, sidewalks, guttering, curbing and paving of streets and alleys adjoining and abutting real estate of the district if the general funds of the district are insufficient in the judgment of the board to pay and discharge the assessment.