HB 45 -- Tax Increment Financing Guidelines

Sponsor:  Johnson (47)

For projects approved after December 31, 2005, this bill permits
tax increment financing (TIF) to be used for no more than 25% of
the total estimated redevelopment costs for projects that are
primarily retail.  The bill prohibits TIF from being used to
develop sites in which 25% or more of the area is open space as
defined by Section 67.900, RSMo, or if the area is currently
being used for agricultural or horticultural purposes.  This
prohibition does not apply to projects that are contained in a
municipality's comprehensive plan if adopted prior to January 1,
2002.

Municipalities that receive payments in lieu of taxes from a
redevelopment project are required to pay 25% of these payments
to other taxing entities which may be entitled to receive revenue
from levies on real property.  When a TIF project includes
residential uses, the bill requires that the real property tax
levies attributable to the residential portion of the development
pass through to the school district.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:17 pm