Associated Industries of Missouri president and CEO Ray McCarty testified in support of HB 349 today, a bill that would reduce property taxes on pipes that carry water, natural gas, and sewage.
“The amount that is paid by the companies that own these pipes is actually paid by all our members that are their customers,” said McCarty. “The taxes paid by gas, water and sewer companies flows through to the rates our Missouri businesses pay for these services,” he said.
The bill, sponsored by Rep. Phil Christofanelli (R-104), would change such pipes to “tangible personal property” for purposes of property taxes. This would subject them to depreciation, reducing the tax in some counties.
Testimony before the committee indicated nearly all of the state’s 114 counties and the City of St. Louis are allowing the depreciation now. Only a small number of counties are refusing to allow depreciation in the calculation of their property tax assessments.
Matt Landwehr of Thompson Coburn, representing Missouri American Water Company, told the committee about the ongoing dispute over the last decade, explaining the State Tax Commission had issued forms that included depreciation in the calculation and nearly all of the county assessors used that calculation. For those counties that did not, legal battles have been expensive for companies, counties and all customers.
The committee took no action on the bill, but action is expected soon.
Original source can be found here.
