137.122. Depreciable tangible personal property--definitions--standardized schedule to be used--valuation table--exceptions.
Depreciable tangible personal property--definitions--standardizedschedule to be used--valuation table--exceptions.
137.122. 1. As used in this section, the following terms mean:
(1) "Business personal property", tangible personal property which isused in a trade or business or used for production of income and which hasa determinable life of longer than one year except that supplies used by abusiness shall also be considered business personal property, but shall notinclude livestock, farm machinery, grain and other agricultural crops in anunmanufactured condition, property subject to the motor vehicleregistration provisions of chapter 301, RSMo, property assessed undersection 137.078, the property of rural electric cooperatives under chapter394, RSMo, or property assessed by the state tax commission under chapters151, 153, and 155, RSMo, section 137.022, and sections 137.1000 to137.1030;
(2) "Class life", the class life of property as set out in thefederal Modified Accelerated Cost Recovery System life tables or theirsuccessors under the Internal Revenue Code as amended;
(3) "Economic or functional obsolescence", a loss in value ofpersonal property above and beyond physical deterioration and age of theproperty. Such loss may be the result of economic or functionalobsolescence or both;
(4) "Original cost", the price the current owner, the taxpayer, paidfor the item without freight, installation, or sales or use tax. In thecase of acquisition of items of personal property as part of an acquisitionof an entity, the original cost shall be the historical cost of thoseassets remaining in place and in use and the placed-in-service date shallbe the date of acquisition by the entity being acquired;
(5) "Placed in service", property is placed in service when it isready and available for a specific use, whether in a business activity, anincome-producing activity, a tax-exempt activity, or a personal activity.Even if the property is not being used, the property is in service when itis ready and available for its specific use;
(6) "Recovery period", the period over which the original cost ofdepreciable tangible personal property shall be depreciated for propertytax purposes and shall be the same as the recovery period allowed for suchproperty under the Internal Revenue Code.
2. To establish uniformity in the assessment of depreciable tangiblepersonal property, each assessor shall use the standardized schedule ofdepreciation in this section to determine the assessed valuation ofdepreciable tangible personal property for the purpose of estimating thevalue of such property subject to taxation under this chapter.
3. For purposes of this section, and to estimate the value ofdepreciable tangible personal property for mass appraisal purposes, eachassessor shall value depreciable tangible personal property by applying theclass life and recovery period to the original cost of the propertyaccording to the following depreciation schedule. The percentage shown forthe first year shall be the percentage of the original cost used forJanuary first of the year following the year of acquisition of theproperty, and the percentage shown for each succeeding year shall be thepercentage of the original cost used for January first of the respectivesucceeding year as follows:Year Recovery Period in Years
3 5 7 10 15 201 75.00 85.00 89.29 92.50 95.00 96.252 37.50 59.50 70.16 78.62 85.50 89.033 12.50 41.65 55.13 66.83 76.95 82.354 5.00 24.99 42.88 56.81 69.25 76.185 10.00 30.63 48.07 62.32 70.466 18.38 39.33 56.09 65.187 10.00 30.59 50.19 60.298 21.85 44.29 55.779 15.00 38.38 51.3110 32.48 46.8511 26.57 42.3812 20.67 37.9213 15.00 33.4614 29.0015 24.5416 20.0817 20.00
Depreciable tangible personal property in all recoveryperiods shall continue in subsequent years to have the depreciation factorlast listed in the appropriate column so long as it is owned or held by thetaxpayer. The state tax commission shall study and analyze the valuesestablished by this method of assessment and in every odd-numbered yearmake recommendations to the joint committee on tax policy pertaining to anychanges in this methodology, if any, that are warranted.
4. Such estimate of value determined under this section shall bepresumed to be correct for the purpose of determining the true value inmoney of the depreciable tangible personal property, but such estimationmay be disproved by substantial and persuasive evidence of the true valuein money under any method determined by the state tax commission to becorrect, including, but not limited to, an appraisal of the tangiblepersonal property specifically utilizing generally accepted appraisaltechniques, and contained in a narrative appraisal report in accordancewith the Uniform Standards of Professional Appraisal Practice or by proofof economic or functional obsolescence or evidence of excessive physicaldeterioration. For purposes of appeal of the provisions of this section,the salvage or scrap value of depreciable tangible personal property mayonly be considered if the property is not in use as of the assessment date.
5. This section shall not apply to business personal property placedin service before January 2, 2006. Nothing in this section shall create apresumption as to the proper method of determining the assessed valuationof business personal property placed in service before January 2, 2006.
6. The provisions of this section are not intended to modify thedefinition of tangible personal property as defined in section 137.010.
(L. 2005 H.B. 58 merged with H.B. 461 merged with S.B. 210, A.L. 2008 S.B. 711)