HCS HB 91 -- TAX INCREMENT FINANCING (Johnson, 47)

COMMITTEE OF ORIGIN:  Local Government

Tax increment financing (TIF) cannot be used to fund more than
20% of the total estimated costs of a project that is primarily
retail or to develop retail sites where 25% or more of the area
is vacant, considered open space, or is currently being used for
agricultural or horticultural purposes.  This substitute exempts
these types of areas that are part of the redevelopment project
and were included in the municipality's comprehensive plan prior
to January 1, 2002.

Municipalities are required to pay 25% of the payments in lieu of
taxes they receive from TIF projects to taxing entities that
would otherwise be entitled to receive revenue from property
taxes.  If a TIF project includes residential uses except in
central business districts, real property tax revenues
attributable to the residential portion of the development will
pass through directly to the affected school districts unless
commission members representing the affected districts say they
will forgo this revenue.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:18 pm