HCS HB 1529 & 1655 -- TAX INCREMENT FINANCING

SPONSOR:  Dempsey (Lembke, 85)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Job Creation and Economic Development by a vote of 17 to 0.

This substitute allows fire departments and emergency medical
services providers to collect 50% to 100% of their lost tax
revenue from the special allocation fund, instead of 25% to 100%
that is currently allowed.  The provisions of the substitute will
only apply to tax increment financing projects approved after
August 28, 2004.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that fire protection districts are
usually burdened by tax increment financing (TIF) projects
because TIF projects bring more people, businesses, and homes to
an area where few existed before.  These people, businesses, and
homes must be protected by the fire district, and the district is
usually required to purchase new equipment and hire new
firefighters in order to meet necessary protection requirements.
The bill will raise the minimum amount that must be reimbursed to
the fire department, ensuring that they will receive more than
before.

Testifying for the bill were Representative Lembke (85); Fire
Service Alliance; Missouri Fire Chiefs Association; St. Louis
Metro Fire Alliance and Fenton Protection District; Central
County Fire and Rescue; St. Charles County; St. Charles County
Ambulance District; and Missouri State Council of Firefighters.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am