General Assembly Includes Methane Gas Conversion Property Tax Exemption in Standing Measure

In the closing day of the past session, provisions (section 223-227 of SF 478) establishing a methane gas conversion to energy property tax exemption that were in Senate File 479 were incorporated in the standing appropriation bill, Senate File 478. These provisions propose to expand property tax exemption eligibility for methane gas conversion to energy property by allowing operations that decompose the waste away from a landfill in which the waste would otherwise be deposited into. These provisions are exempted from the unfunded mandate provisions, meaning the state will not compensate counties for lost property tax revenues. The provision are effective upon enactment on equipment placed into operation on or after January 1, 2008, and on or before December 31, 2012 and are retroactive to assessment years on of after January 1, 2008, provided such claims are files with the appropriate assessing authority by June 30, 2009. The Legislative Service Agency Fiscal Service Division estimated the impact being $27,000 to state general school aid appropriations and $161,400 reduction in local property tax collection for each $5-million value of methane gas conversion to energy property exempted by these provisions.

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