SCS/SB 944 - This act modifies provisions relating to property taxes.CLASSIFICATION OF CERTAIN PROPERTIES
This act reclassifies stationary property used for transportation or storage of liquid and gaseous products, including, but not limited to, natural gas that is not propane or LP gas, water, and sewage, from real property to tangible personal property. (Section 137.010)
Beginning January 1, 2022, the provisions of current law relating to depreciable tangible personal property shall apply to all stationary property used for transportation or storage of liquid and gaseous products, including, but not limited to, natural gas that is not LP gas, water, and sewage that was or will be placed in service at any time. (Section 137.122)
These provisions are identical to provisions in HCS/HB 2208 (2022) and are substantially similar to SB 196 (2021), SCS/SB 785 (2020), and HCS/HB 1907 (2020).
ACCOUNTING PRACTICES OF PUBLIC UTILITIES
Under this act, electrical corporations, gas corporations, sewer corporations, and water corporations shall defer to a regulatory asset or liability account any difference in state or local property tax expenses actually incurred, and those on which the revenue requirement used to set rates in the corporation's most recently completed general rate proceeding was based. The regulatory asset or liability account balances shall be included in the revenue requirement used to set rates through an amortization over a reasonable period of time in such corporation's subsequent general rate proceedings, without any offset. (Section 393.1275)
This provision is identical to a provision in HCS/HB 2208 (2022) and is substantially similar to HCS/HB 2709 (2022) and to a provision in SCS/SB 745 (2022), SS/SCS/SB 756 (2022), and SCS/HCS/HB 1734 (2022).
JOSH NORBERG