HCS HB 693 -- INDUSTRIAL DEVELOPMENT

SPONSOR:  Dempsey

COMMITTEE ACTION:  Voted "do pass" by the Committee on Job
Creation and Economic Development by a vote of 18 to 0 with 1
present.

For any industrial development plan approved after August 28,
2003, that authorizes the issuance of revenue bonds or the
conveyance of a fee interest in property to the municipality,
except property associated with railroads, street railroads,
bridges, and express and public utilities that are assessed by
the State Tax Commission, this substitute requires that the
project plan also include a statement identifying each taxing
district affected by the project.  The project plan must also
include the most recent equalized assessed valuation of the real
and personal property included in the project and an estimate as
to the equalized assessed valuation of real and personal property
included in the project after development.  A cost-benefit
analysis is also required, as is the identification of any
payments in lieu of taxes or other payments expected to be made
by the lessee of the project.

The substitute requires that the county in which the municipality
is located and any school district be notified of the hearing to
be held regarding the industrial development project and invited
to testify to the governing body about the project.

The substitute requires that the current assessed value of all
property within the taxing district be included in the aggregate
valuation of assessed property and that this amount be used for
the purpose of determining the local government's debt
limitation, as required by the Missouri Constitution.

Current law requires municipalities to file a report with the
Department of Economic Development regarding revenue bonds issued
in the previous year.  The substitute requires the report to also
include a general description of the property purchased by the
municipality with bond proceeds.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill is good because it
requires that school districts be notified when a project
affecting their tax revenue is proposed.  It will ensure
appropriate use of Chapter 100, RSMo, without negatively
affecting its usefulness as a development tool.

Testifying for the bill were Representative Stefanick; Parkway
School District; Rockwood School District Board of Education;
Cooperating School Districts of Greater St. Louis; and Board of
Education for the Special School District of St. Louis County.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am