HB2961

THE CONTEXT: Pipes and valves four inches in diameter or larger are nontaxable if they are used to transport oil, natural gas, artificial gas, water or coal slurry. The deduction also includes compressor units, regulators, machinery and equipment, fittings, seals and any parts used in operating the pipes or valves (A.

WHAT THE BILL DID: The final vetoed version would expand the existing TPT and use tax exemption for pipes and valves that are four inches in diameter or larger used to transport oil, natural gas, artificial gas, water or coal slurry to include pipes or valves used to transport wastewater effective to taxable periods beginning on the first day of the month following the general effective date, create a property tax exemption for property owned by a veteran with a service connected disability that is rated at 100% which fully exempts the property from taxation and allows the exemption for the surviving spouse of eligible veterans if the property is the surviving spouse's primary residence and the surviving spouse does not remarry, and specifies the property of a veteran with a nonservice connected disability whose disability rating 100% or less or with a service connected disability of less than 100% are exempt in the amount of: a. $4,188 for the property of people who are not fully exempt if the individual's total assessment does not exceed $28,459; b; reduces the $4,188 limit by multiplying the total exemption by the percentage of the veteran's disability. (sec. 3).

WHY IT MATTERED: The practical reason for this bill was to make the state tax, regulatory, or economic rule for taxation more predictable. It would expand the existing TPT and use tax exemption for pipes and valves that are four inches in diameter or larger used to transport oil, natural gas, artificial gas, water or coal slurry to include pipes or valves used to transport wastewater effective to taxable periods beginning on the first day of the month following the general effective date, and would also create a property tax exemption for property owned by a veteran with a service connected disability that is rated at 100% which fully exempts the property from taxation and allows the exemption for the surviving spouse of eligible veterans if the property is the surviving spouse's primary residence and the surviving spouse does not remarry, rather than leave the current rule unchanged.