FIRST REGULAR SESSION
HOUSE BILL NO. 461
93RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES SUTHERLAND (Sponsor) AND SMITH (118) (Co-sponsor).
Read 1st time February 3, 2005 and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
To amend chapter 137, RSMo, by adding thereto one new section relating to assessment of
business personal property.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 137, RSMo, is amended by adding thereto one new section, to be
known as section 137.079, to read as follows:
137.079. 1. For purposes of this section, the following terms mean:
(1) "Business personal property", tangible personal property which is used in a
trade or business or used for the production of income and which has a determinable life
longer than one year, but shall not include livestock, farm machinery, property subject to
the motor vehicle registration provisions of chapter 301, RSMo, or property assessed by
the commission under chapter 151, 153, or 155, RSMo, section 137.022, or sections
137.1000 to 137.1030;
(2) "Commission", the state tax commission.
2. Beginning January 1, 2006, all assessors shall use a method of valuation for
business personal property as established by rule of the commission in accordance with the
provisions of this section. As authorized by section 4(b), article X, Constitution of
Missouri, business personal property shall be considered a separate subclass of class 2
property and valued for purposes of taxation at thirty-three and one-third of its true value
in money. True value in money of business personal property shall be determined by the
cost approach to value, and the value so determined by rule of the commission shall be
presumed to be correct.
3. The method of valuation established by the state tax commission shall be
promulgated as rules under the provisions of chapter 536, RSMo, to be effective no later
than December 31, 2005. Such rules shall not be promulgated as an emergency rule under
section 536.025, RSMo. The state tax commission shall provide a copy of any rule
promulgated under the authority of this section to the joint committee on tax policy
concurrently with all filings with the joint committee on administrative rules. Upon receipt
of a proposed rule to adopt, revise, or rescind the method of valuation of business personal
property, the joint committee on tax policy shall review such rule and may elect to provide
comments to the joint committee on administrative rules during its review of the rules
under chapter 536, RSMo.
4. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo,
that is created under the authority delegated in this section shall become effective only if
it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if
applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable
and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo,
to review, to delay the effective date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking authority and any rule proposed or
adopted after August 28, 2005, shall be invalid and void.
5. The method of valuation established by rule by the state tax commission shall be
used by assessors beginning the tax year 2006.