Missouri SB 1060: Modifies provisions relating to the taxation of solar energy property

Bill Text

SECOND REGULAR SESSION
SENATE BILL NO. 1060
100TH GENERAL ASSEMBLY
INTRODUCED BY SENATOR HOUGH.
Read 1st time February 26, 2020, and ordered printed.
ADRIANE D. CROUSE, Secretary.
5440S.01I
AN ACT
To amend chapter 137, RSMo, by adding thereto two new sections relating to the
taxation of property associated with the production of energy.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 137, RSMo, is amended by adding thereto two new
2 sections, to be known as sections 137.123 and 137.124, to read as follows:
137.123. For solar energy projects commencing construction on
2 or after January 1, 2020, beginning January 1, 2021, for purposes of
3 assessing all real or tangible personal property associated with a
4 project that uses solar energy directly to generate electricity, the
5 following depreciation tables shall be used to determine the true value
6 in money of such property. The first year shown in the table shall be
7 the year immediately following the year the solar energy system is
8 capable of producing electricity. The percentages shown in the table
9 shall reflect either:
10 (1) The percentage of the actual and documented original
11 property cost to the taxpayer, as shall be provided by the taxpayer to
12 the assessor; or
13 (2) If the original property cost to the taxpayer is not properly
14 documented by the taxpayer, the percentage of the estimated cost of
15 the property by the assessor shall be determined by using an
16 appropriate method to determine value.
17 Year Percentage
18 1 40%
19 2 40%
20 3 37%
21 4 37%
22 5 35%

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23 Any real or tangible personal property associated with a project that
24 uses solar energy directly to generate electricity shall continue in
25 subsequent years to have the depreciation percentage last listed in the
26 appropriate column in the table. Property associated with a solar
27 project, including, but not limited to, solar panels, racking, inverters,
28 wiring, transformers, meters, battery packs, wiring and substations,
29 and related equipment, shall be considered personal property. Real
30 property upon which the personal property is located, as well as any
31 buildings located on such property, shall be considered real property.
137.124. For solar energy projects under construction prior to
2 January 1, 2020, beginning January 1, 2021, for purposes of assessing
3 all real or tangible personal property associated with a project that
4 uses solar energy directly to generate electricity, the following
5 depreciation tables shall be used to determine the true value in money
6 of such property. The first year shown in the table shall be the year
7 immediately following the year the solar energy system is capable of
8 generating electricity. The percentages shown in the table shall reflect
9 either:
10 (1) The percentage of the actual and documented original
11 property cost to the taxpayer, as shall be provided by the taxpayer to
12 the assessor; or
13 (2) If the original property cost to the taxpayer is not properly
14 documented by the taxpayer, the percentage of the estimated cost of
15 the property by the assessor shall be determined by using an
16 appropriate method to determine value.
17 Year Percentage
18 1 20%
19 2 18%
20 3 15%
21 4 10%
22 5 10%
23 Any real or tangible personal property associated with a project which
24 uses solar energy directly to generate electricity shall continue in
25 subsequent years to have the depreciation percentage last listed in the
26 appropriate column in the table. Property associated with a solar
27 project, including, but not limited to, solar panels, racking, inverters,
28 wiring, transformers, meters, battery packs, wiring and substations,

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29 and related equipment, shall be considered personal property. Real
30 property upon which the personal property is located, as well as any
31 buildings located on such property, shall be considered real property.
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