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SECOND REGULAR SESSION
SENATE BILL NO. 1088
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NURRENBERN.
4427S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 137.016, RSMo, and to enact in lieu thereof one new section relating to
classification of certain residential real property.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 137.016, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 137.016, 2
to read as follows:3
137.016. 1. As used in Section 4(b) of Article X of 1
the Missouri Constitution, the following terms mean: 2
(1) "Residential property", all real property improved 3
by a structure which is used or intended to be used for 4
residential living by human occupants, vacant land in 5
connection with an airport, land used as a golf course, 6
manufactured home parks, bed and breakfast inns in which the 7
owner resides and uses as a primary residence with six or 8
fewer rooms for rent, and time-share units as defined in 9
section 407.600, except to the extent such units are 10
actually rented and subject to sales tax under subdivision 11
(6) of subsection 1 of section 144.020, but residential 12
property shall not include other similar facilities used 13
primarily for transient housing. A single family home owned 14
by a sole proprietor, individual, partnership, or limited 15
liability company that is leased for a term of less than 16
thirty consecutive days, in whole or in part, subject to 17
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sales tax under subdivision (6) of subsection 1 of section 18
144.020 shall be classified only as residential property. 19
For the purposes of this section, "transient housing" means 20
all rooms available for rent or lease for which the receipts 21
from the rent or lease of such rooms are subject to state 22
sales tax pursuant to subdivision (6) of subsection 1 of 23
section 144.020; the leasing of a single family home, in 24
whole or in part, for a term of less than thirty consecutive 25
days does not, in itself, constitute "transient housing"; 26
(2) "Agricultural and horticultural property", all 27
real property used for agricultural purposes and devoted 28
primarily to the raising and harvesting of crops; to the 29
feeding, breeding and management of livestock which shall 30
include breeding, showing, and boarding of horses; to 31
dairying, or to any other combination thereof; and buildings 32
and structures customarily associated with farming, 33
agricultural, and horticultural uses. Agricultural and 34
horticultural property shall also include land devoted to 35
and qualifying for payments or other compensation under a 36
soil conservation or agricultural assistance program under 37
an agreement with an agency of the federal government. 38
Agricultural and horticultural property shall further 39
include any reliever airport. Real property classified as 40
forest croplands shall not be agricultural or horticultural 41
property so long as it is classified as forest croplands and 42
shall be taxed in accordance with the laws enacted to 43
implement Section 7 of Article X of the Missouri 44
Constitution. Agricultural and horticultural property shall 45
also include any sawmill or planing mill defined in the U.S. 46
Department of Labor's Standard Industrial Classification 47
(SIC) Manual under Industry Group 242 with the SIC number 48
2421. Agricultural and horticultural property shall also 49
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include urban and community gardens. For the purposes of 50
this section, "urban and community gardens" shall include 51
real property cultivated by residents of a neighborhood or 52
community for the purposes of providing agricultural 53
products, as defined in section 262.900, for the use of 54
residents of the neighborhood or community, and shall not 55
include a garden intended for individual or personal use; 56
(3) "Utility, industrial, commercial, railroad and 57
other real property", all real property used directly or 58
indirectly for any commercial, mining, industrial, 59
manufacturing, trade, professional, business, or similar 60
purpose, including all property centrally assessed by the 61
state tax commission but shall not include floating docks, 62
portions of which are separately owned and the remainder of 63
which is designated for common ownership and in which no one 64
person or business entity owns more than five individual 65
units. All other real property not included in the property 66
listed in subclasses (1) and (2) of Section 4(b) of Article 67
X of the Missouri Constitution, as such property is defined 68
in this section, shall be deemed to be included in the term 69
"utility, industrial, commercial, railroad and other real 70
property". 71
2. Pursuant to Article X of the state Constitution, 72
any taxing district may adjust its operating levy to recoup 73
any loss of property tax revenue, except revenues from the 74
surtax imposed pursuant to Article X, Subsection 2 of 75
Section 6 of the Constitution, as the result of changing the 76
classification of structures intended to be used for 77
residential living by human occupants which contain five or 78
more dwelling units if such adjustment of the levy does not 79
exceed the highest tax rate in effect subsequent to the 1980 80
tax year. For purposes of this section, loss in revenue 81
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shall include the difference between the revenue that would 82
have been collected on such property under its 83
classification prior to enactment of this section and the 84
amount to be collected under its classification under this 85
section. The county assessor of each county or city not 86
within a county shall provide information to each taxing 87
district within its boundaries regarding the difference in 88
assessed valuation of such property as the result of such 89
change in classification. 90
3. All reclassification of property as the result of 91
changing the classification of structures intended to be 92
used for residential living by human occupants which contain 93
five or more dwelling units shall apply to assessments made 94
after December 31, 1994. 95
4. Where real property is used or held for use for 96
more than one purpose and such uses result in different 97
classifications, the county assessor shall allocate to each 98
classification the percentage of the true value in money of 99
the property devoted to each use; except that, where 100
agricultural and horticultural property, as defined in this 101
section, also contains a dwelling unit or units, the farm 102
dwelling, appurtenant residential-related structures and up 103
to five acres immediately surrounding such farm dwelling 104
shall be residential property, as defined in this section, 105
provided that the portion of property used or held for use 106
as an urban and community garden shall not be residential 107
property. This subsection shall not apply to any reliever 108
airport. 109
5. All real property which is vacant, unused, or held 110
for future use; which is used for a private club, a not-for- 111
profit or other nonexempt lodge, club, business, trade, 112
service organization, or similar entity; or for which a 113
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determination as to its classification cannot be made under 114
the definitions set out in subsection 1 of this section, 115
shall be classified according to its immediate most suitable 116
economic use, which use shall be determined after 117
consideration of: 118
(1) Immediate prior use, if any, of such property; 119
(2) Location of such property; 120
(3) Zoning classification of such property; except 121
that, such zoning classification shall not be considered 122
conclusive if, upon consideration of all factors, it is 123
determined that such zoning classification does not reflect 124
the immediate most suitable economic use of the property; 125
(4) Other legal restrictions on the use of such 126
property; 127
(5) Availability of water, electricity, gas, sewers, 128
street lighting, and other public services for such property; 129
(6) Size of such property; 130
(7) Access of such property to public thoroughfares; 131
and 132
(8) Any other factors relevant to a determination of 133
the immediate most suitable economic use of such property. 134
6. All lands classified as forest croplands shall not, 135
for taxation purposes, be classified as subclass (1), 136
subclass (2), or subclass (3) real property, as such classes 137
are prescribed in Section 4(b) of Article X of the Missouri 138
Constitution and defined in this section, but shall be taxed 139
in accordance with the laws enacted to implement Section 7 140
of Article X of the Missouri Constitution. 141
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