HB 616, a bill that ensures short term rental merchandise is treated as exempt “inventory” for property tax purposes, was signed today by Governor Jay Nixon.
The bill corrects an issue with some county assessors who attempted to collect property taxes on merchandise that was not physically present in a short-term rental facility on January 1. The merchandise was typically rented out and under the lessee’s control on that date. While merchandise in the facility was treated as inventory and exempt from property tax, some assessors assessed tax on the merchandise that was not in the showroom and available for sale on January 1. This bill will ensure consistent treatment of the merchandise as all such merchandise will be exempt from property tax as “inventory.”
The same provisions were included in a larger bill that was also signed today (SCS HCS HB 613). That bill also specifies low income housing is treated as residential property for property tax purposes, adjusts county collector fees, and makes several other property tax related changes.
Associated Industries of Missouri supported these bills and is pleased they have now been signed into law.