02/25/2025

House Bill 15

SIGNED: Effective August 14, 2025

Lead Sponsors: Representative Roy Klopfenstein

Status: Passed the House, 82-3 (March 26, 2025); Passed the Senate, 33-0 (April 30, 2025); Signed by the Governor (May 15, 2025); Effective, August 14, 2025

Description: The bill lowers the assessment rates on tangible personal property of public utilities. Electric generation and energy conversion equipment put into service in or after TY 2027 will be assessed at 7% instead of the current 24% or 25% (depending on the public utility's classification). 

Since the changes are made prospectively, the Legislative Service Commission could not estimate their effect.

The assessment rate for electric transmission and distribution property is lowered to 25% (from 85% or 50%, depending on the public utility's classification). The assessment rate for taxable pipeline company property is lowered from 88% to 25% for property first subject to the tax in TY 2027.

The Legislative Service Commission estimates that these changes could reduce property tax revenue by $49 million to $74 million statewide, but notes that the actual size of the revenue decrease will vary by location and tax rates.

The bill also creates authority for local governments (counties, municipalities, and townships) to request the Department of Development designate a brownfield site or former coal mine site as a priority investment area, in which public utility tangible personal property used to transport or transmit electricity or natural gas will be fully exempted from property taxation for a period of five years. 

CCAO Position: CCAO testified as an Interested Party regarding the assessment rate of new generation equipment.