HB 688 Summary

• Defines "hydroelectric power generating equipment" as very-low-head turbine generators with 400-600 kilowatts capacity and related machinery, classifying it as tangible personal property for taxation purposes.

• Establishes hydroelectric power generating equipment as a separate subclass of tangible personal property assessed at one percent of true value, providing favorable tax treatment compared to the standard 33.33 percent rate.

• Modifies tax rate calculation provisions to permit political subdivisions with voter-approved tax increases after August 27, 2008, to levy rates based on the increased rate ceiling adjusted for consumer price index growth.

• Clarifies that tax rate ceilings shall not exceed the greater of the most recent voter-approved rate or the most recent voter-approved rate as adjusted for inflation.

• Repeals section 386.850 regarding the Missouri energy task force annual reporting requirement, while maintaining provisions of the Missouri Energy Efficiency Investment Act (section 393.1075) governing utility demand-side programs and cost recovery mechanisms.