02/25/2025

House Bill 15

Lead Sponsors: Representative Roy Klopfenstein

Status: Third hearing in House Energy (February 26, 2025)

Description: In addition to other changes to the energy section, the bill makes two main changes to public utility TPP taxation. First, it fully exempts property used for electric generation from taxation; and second, it increases the assessment rate on property used for electric transmission and distribution.

Under current law, property used for generation is classified in the "all other property" category of property type, meaning for electric companies it is typically assessed at 24% of its true value. HB 15 does not change the 24% assessment rate for "other property" except for that property which is used to generate electricity.

For transmission and distribution property, the bill increases the assessment rate for electric companies to 89%, up from 85%. For other energy companies, defined as companies that generate electricity through wind turbines, solar panels, other renewable energy sources, clean coal, or a combination of, and with a nameplate capacity of greater than 250 kilowatts, its non-generation property will also be assessed at 89%. Rural electric company assessment rates are not changed by the bill.

The Legislative Service Commission estimates that, in the near-term, the changes will be close to revenue neutral at the statewide level. However, it acknowledges that the impact will vary at the local level based on how each individual taxing district's base is composed. Taxing districts with generation property will see revenues decreased while those with transmission property will generally see revenue increased.

The bill does not include a mechanism to offset any revenue losses incurred by local governments for the full exemption of electric generation TPP.

The table below shows assessment rates under current law, HB 15, and SB 2.

CCAO Position: No position (as of February 2025)