FIRST REGULAR SESSION
93RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE WRIGHT-JONES.
Read 1st time March 30, 2005 and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
AN ACT
To repeal sections 67.1501, 71.792, 71.794, 71.798, 71.799, 71.800, 71.801, 71.802, and 71.808, RSMo, and to enact in lieu thereof seven new sections relating to special business districts.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 67.1501, 71.792, 71.794, 71.798, 71.799, 71.800, 71.801, 71.802, and 71.808, RSMo, are repealed and seven new sections enacted in lieu thereof, to be known as sections 67.1501, 71.792, 71.794, 71.798, 71.799, 71.800, and 71.802, RSMo, to read as follows:
67.1501. 1. A district may use any one or more of the assessments, taxes, or other funding methods specifically authorized pursuant to sections 67.1401 to 67.1571 to provide funds to accomplish any power, duty or purpose of the district; provided, however, no district which is located in any city not within a county and which includes any real property that is also included in a special business district established pursuant to sections 71.790 to [71.808] 71.806, RSMo, prior to the establishment of the district pursuant to sections 67.1401 to 67.1571 shall have the authority to impose any such tax or assessment pursuant to sections 67.1401 to 67.1571 until such time as all taxes or special assessments imposed pursuant to sections 71.790 to [71.808] 71.806, RSMo, on any real property or on any business located in such special business district or on any business or individual doing business in such special business district have been repealed in accordance with this subsection. The governing body of a special business district which includes real property located in a district established pursuant to sections 67.1401 to 67.1571 shall have the power to repeal all taxes and assessments imposed pursuant to sections 71.790 to [71.808] 71.806, RSMo, and such power may be exercised by the adoption of a resolution by the governing body of such special business district. Upon the adoption of such resolution such special business district shall no longer have the power to impose any tax or special assessment pursuant to sections 71.790 to [71.808] 71.806, RSMo, until such time as the district or districts established pursuant to sections 67.1401 to 67.1571 which include any real property that is also included in such special business district have been terminated or have expired pursuant to sections 67.1401 to 67.1571.
2. A district may establish different classes of real property within the district for purposes of special assessments. The levy rate for special assessments may vary for each class or subclass based on the level of benefit derived from services or improvements funded, provided or caused to be provided by the district.
3. Notwithstanding anything in sections 67.1401 to 67.1571 to the contrary, any district which is not a political subdivision shall have no power to levy any tax but shall have the power to levy special assessments in accordance with section 67.1521.
71.792. A business district shall be formed by ordinance of the governing body of the city which shall establish the business district and define its limits. Prior to the establishment of a business district the [governing body of the city] petitioners shall [conduct] submit to the governing body of the city a survey and investigation for the purposes of determining the nature of and suitable location for business district improvements, the approximate cost of acquiring and improving the land therefor, the area to be included in the business district or districts, the need for and cost of special services, and cooperative promotion activities, and the percentage of the cost of acquisition, special services, and improvements in the business district which are to be assessed against the property within the business district and that part of the cost, if any, to be paid by public funds. The cost of the survey and investigation shall be included as a part of the cost of establishing the business district. A written report of this survey and investigation shall be filed in the office of the city clerk in the city and shall be available for public inspection.
71.794. A special business district may be established, enlarged or decreased in area as provided herein in the following manner:
(1) Upon petition by one or more owners of real property on which is paid the ad valorem real property taxes within the proposed district, the governing body of the city may adopt a resolution of intention to establish, enlarge or decrease in area a special business district or modify the tax rate ceiling. The resolution shall contain the following information:
(a) Description of the boundaries of the proposed area;
(b) The time and place of a hearing to be held by the governing body considering establishment of the district;
(c) The proposed uses to which the additional revenue shall be put and the initial tax rate to be levied.
(2) Whenever a hearing is held as provided hereunder, the governing body of the city shall publish notice of the hearing on two separate occasions in at least one newspaper of general circulation not more than fifteen days nor less than ten days before the hearing; and shall mail a notice by [registered or certified] first class United States mail [with a return receipt attached] of the hearing to all owners of record of real property and licensed businesses located in the proposed district; and shall hear all protests and receive evidence for or against the proposed action; rule upon all protests which determination shall be final; and continue the hearing from time to time.
(3) If the governing body decides to change the boundaries of the proposed area, the hearing shall be continued to a time at least fifteen days after the decision. Notice shall be given in at least one newspaper of general circulation at least ten days prior to the time of said hearing showing the boundary amendments.
(4) If the governing body following the hearing decides to establish the proposed district, it shall adopt an ordinance to that effect. The ordinance shall contain the following:
(a) The number, date and time of the resolution of intention pursuant to which it was adopted;
(b) The time and place the hearing was held concerning the formation of the area;
(c) The description of the boundaries of the district;
(d) A statement that the property in the area established by the ordinance shall be subject to the provisions of additional tax as provided herein;
(e) The initial rate of levy to be imposed upon the property lying within the boundaries of the district;
(f) A statement that a special business district has been established;
(g) The uses to which the additional revenue shall be put;
(h) In any city with a population of less than three hundred fifty thousand, the creation of an advisory board or commission and enumeration of its duties and responsibilities;
(i) In any city with a population of three hundred fifty thousand or more, provisions for a board of commissioners to administer the special business district, which board shall consist of seven members who shall be appointed by the mayor with the advice and consent of the governing body of the city. Five members shall be owners of real property within the district or their representatives and two members shall be renters of real property within the district or their representatives. The terms of the members shall be structured so that not more than two members' terms shall expire in any one year. Subject to the foregoing, the governing body of the city shall provide in such ordinance for the method of appointment, the qualifications, and terms of the members.
71.798. The governing body of the city creating the district shall have sole discretion as to how the revenue derived from any tax to be imposed herein shall be used within the scope of the above purposes, unless such district is administered by an appointed board of commissioners as provided in paragraph (i) of subdivision (4) of section 71.794. For all districts administered by an appointed board of commissioners, such board shall have sole discretion as to how the revenue derived from any tax to be imposed herein shall be used within the scope of the above purposes. The governing body of the city shall appoint an advisory board or commission to make recommendations as to its use. The governing body of the city creating the district shall not decrease the level of publicly funded services in the district existing prior to creation of the district or transfer the financial burden of providing the services to the district unless the services at the same time are decreased throughout the city, nor shall the governing body discriminate in the provision of the publicly funded services between areas included in such a district and areas not so included.
71.799. [1.] In any city with a population of three hundred fifty thousand or more, a district shall have all the powers necessary or convenient to carry out any and all improvements adopted in the ordinance establishing the district and, in addition, may exercise the following powers:
(1) Cooperate with other public agencies and with any industry or business located within the district in the implementation of any project within the district;
(2) Enter into any agreement with any other public agency, any person, firm, or corporation to effect any of the provisions contained in sections 71.790 to [71.808] 71.806;
(3) Contract and be contracted with, and to sue and be sued;
(4) Accept gifts, grants, loans, or contributions from the city in which the district is located, the United States of America, the state of Missouri, political subdivisions, foundations, other public or private agencies, individuals, partnerships, or corporations;
(5) Employ such managerial, engineering, legal, technical, clerical, accounting, and other assistance as it may deem advisable. The district may also contract with independent contractors for any such assistance.
[2. In any city with a population of three hundred fifty thousand or more, the governing body of the city creating the district shall have final discretion as to how the revenue derived from any tax to be imposed under sections 71.790 to 71.808 shall be used within the scope of the above purposes, and the governing body of the city shall give its advice and consent to members of a board of commissioners appointed by the mayor of the city to administer the district. The governing body of the city creating the district shall not decrease the level of publicly funded services in the district existing prior to creation of the district or transfer the financial burden of providing the services to the district unless the services at the same time are decreased throughout the city, nor shall the governing body discriminate in the provision of the publicly funded services between areas included in such a district and areas not so included.]
71.800. 1. For the purpose of paying for all costs and expenses incurred in the operation of the district, the provision of services or improvements authorized in section 71.796, and incidental to the leasing, construction, acquisition, and maintenance of any improvements provided for under sections 71.790 to [71.808] 71.806 or for paying principal and interest on notes or bonds authorized for the construction or acquisition of any said improvement, the district may impose a tax upon the owners of real property within the district which shall not exceed [eighty-five cents] one dollar and fifty cents on the one-hundred-dollar assessed valuation. In any city other than a city not within a county, real property subject to partial tax abatement under either the provisions of the urban redevelopment corporations law of Missouri or the provisions of sections 99.700 to 99.710, RSMo, shall for the purpose of assessment and collection of ad valorem real estate taxes levied under the provisions of this section be assessed and ad valorem real estate taxes shall be collected as if the real estate were not subject to the tax abatement. The collection of delinquent receipts of said tax shall be in the same manner and form as that provided by law for all ad valorem property taxes. Taxes levied and collected under sections 71.790 to [71.808] 71.806 shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.
2. For the purpose of paying for all costs and expenses incurred in the operation of the district and the provision of services or improvements authorized in section 71.796, the district may impose additional tax on businesses and individuals doing business within the district. If the governing body imposes any business license taxes, such additional taxes shall not exceed fifty percent of the business license taxes. Whenever a hearing is held herein, the governing body shall hear all protests and receive evidence for or against the proposed action; rule upon all protests which determination shall be final; and may continue the hearing from time to time. Proceedings shall terminate if protest is made by businesses in the proposed area which pay a majority of the additional taxes within the area. For purposes of the additional tax to be imposed pursuant to this part, the governing body of the city may make a reasonable classification of businesses, giving consideration to various factors.
3. In addition to the taxes authorized by subsections 1 and 2 of this section, any district within a city which has a population of three hundred fifty thousand or more and is located within more than one county upon authorization of a majority of the voters voting thereon may impose one or more of the following special assessments on all real property located within the district:
(1) Not more than five cents per square foot on each square foot of land;
(2) Not more than one-half of a cent per square foot on each square foot of improvements on land; and
(3) Not more than twelve dollars per abutting foot of the lots, tracts and parcels of land within the district abutting on public streets, roads and highways.
4. For purposes of sections 10(c), 16, and 22 of article X of the Constitution of Missouri, and of section 137.073, RSMo, the following terms as applied to an election pursuant to this section mean:
(1) "Approval of the required majority" or "direct voter approval", a simple majority;
(2) "Qualified voters", persons or other entities who have filed an application pursuant to subsection 6 of this section.
5. [The governing body of any city in which there is a special business district may order an election on the approval of a new tax rate ceiling or assessment limit for any tax imposed pursuant to subsections 1 to 3 of this section. All costs of any such election shall be borne by the district out of it existing levy. The order shall set forth the new tax rate ceiling or assessment limit proposed. Any provision of law to the contrary notwithstanding, the tax rate ceiling may be increased or decreased, from any rate as revised under the provisions of section 137.073, RSMo, to any rate not in excess of eighty-five cents on the one-hundred-dollar assessed valuation. Such order shall specify a date on which ballots for the election shall be mailed. Such date shall be a Tuesday, and shall be not earlier than the eighth Tuesday from the issuance of the order, nor later than August fifteenth of the year the order is issued and shall not be on the same day as an election conducted under the provisions of chapter 115, RSMo.
6. Application for a ballot shall be conducted as provided in this subsection:
(1) Persons entitled to apply for a ballot in an election to approve a new tax rate ceiling for a tax imposed pursuant to subsection 1 or 3 of this section shall be:
(a) A resident individual of the district; or
(b) A person, including an individual, partnership, limited partnership, corporation, estate, or trust, which owns real property within the special business district;
(2) A person entitled to apply for a ballot in an election to approve a new tax rate ceiling for a tax imposed pursuant to subsection 2 of this section shall be a person, including an individual, partnership, limited partnership, corporation, estate, or trust, which possesses a license to do business in the district;
(3) Only persons entitled to apply for a ballot in elections pursuant to this section shall apply. Such persons shall apply with the clerk of the city in which the special business district is organized. Each person applying shall provide:
(a) Such person's name, address, mailing address, and phone number;
(b) An authorized signature; and
(c) Evidence that such person is entitled to vote. Such evidence shall be:
a. For resident individuals, proof of registration from the election authority;
b. For owners of real property, a tax receipt or deed or other document which evidences an equitable ownership, and identifies the real property by location;
c. For holders of business licenses, a copy of such business license;
(4) No person shall apply later than the fourth Tuesday before the date for mailing ballots specified in the governing body's order.
7. The clerk shall mail a ballot to each applicant of the district along with a return addressed envelope directed to the city clerk's office with a sworn affidavit on the reverse side of such envelope for the voter's signature. Such affidavit shall be in the following form:
I hereby declare under penalties of perjury that I am
qualified to vote, or to affix my authorized signature
in the name of an entity which is entitled to vote, in
this election.
..........................................
Authorized Signature Subscribed and sworn to
before me this ...............
.......................................... day of ................., 20.....
Printed Name of Voter
........................................... ...........................................
Address of Voter Signature of notary or
other officer authorized
........................................... to administer oaths
Mailing Address of Voter
(if different)
8.] The question shall be submitted in substantially the following forms:
(1) Shall the special business district of .................. be authorized to impose a tax on owners of real property in a sum not to exceed .......... cents on the one hundred dollar assessed valuation?
□ YES □ NO
If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".
(2) Shall the special business district of .................... be authorized to impose its business license tax on businesses and individuals doing business within the special business district in an amount not to exceed ............ percent of the business license tax imposed by ..............?
□ YES □ NO
If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".
(3) Shall the special business district of ................... be authorized to impose a special assessment not to exceed ......... cents per square foot on each square foot of land within the district?
□ YES □ NO
If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".
(4) Shall the special business district of ...................... be authorized to impose a special assessment not to exceed ........ cents per square foot on each square foot of improvements on land within the district?
□ YES □ NO
If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".
(5) Shall the special business district of ................... be authorized to impose a special assessment not to exceed .......... dollars per abutting foot of the lots, tracts and parcels of land within the district abutting on public streets, roads and highways?
□ YES □ NO
If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".
(6) Shall the special business district of ................. change its tax on ............. to ...........?
□ YES □ NO
If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".
Each ballot shall be plain paper, through which printing or writing cannot be read.
[9. Each qualified voter shall have one vote. Each voter which is not an individual shall determine how to cast its vote as provided for in its articles of incorporation, articles of partnership, bylaws, or other document which sets forth an appropriate mechanism for the determination of the entity's vote. If a voter has no such mechanism, then its vote shall be cast as determined by a majority of the persons who run the day-to-day affairs of the voter. Each voted ballot shall be signed with the authorized signature.
10. Voted ballots shall be returned to the city clerk's office by mail or hand delivery no later than 5:00 p.m. on the sixth Tuesday after the date for mailing the ballots as set forth in the governing body's order. The city clerk shall transmit all voted ballots to a team of judges of not less than four, with an equal number from each of the two major political parties. The judges shall be selected by the city clerk from lists compiled by the election authority. Upon receipt of the voted ballots the judges shall verify the authenticity of the ballots, canvass the votes, and certify the results. Certification by the election judges shall be final and shall be immediately transmitted to the governing body. Any voter who applied for such election may contest the result in the same manner as provided in chapter 115, RSMo.
11.] 6. If approved, the new tax rate ceiling or assessment limit shall be effective for the tax year in which the election is held, the provisions of section 67.110, RSMo, to the contrary notwithstanding.
71.802. 1. Any district established under the provisions of sections 71.790 to [71.808] 71.806 may, upon approval of the constitutionally required percentage of the voters of the district voting thereon, incur indebtedness and issue bonds or notes for the payment thereof. Notice of the election, the amount and the purpose of the loan shall be given.
2. The question shall be submitted in substantially the following form:
Shall the special business district incur indebtedness for the purpose of ....... in the amount of .... dollars, evidenced by the issuance of bonds or notes and levy a real estate tax to pay therefor?
3. If the constitutionally required percentage of the votes cast are for the indebtedness, the district shall, subject to the restrictions of section 71.796 and section 71.800, be vested with the power to incur indebtedness in the name of the district, to the amount and for the purposes specified on the ballot, and issue the bonds of the district for the payment thereof.
4. The indebtedness authorized by this section shall not be contracted for a period longer than twenty years, and the entire amount of the indebtedness shall at no time exceed, including the existing indebtedness of the district, in the aggregate ten percent of the value of taxable tangible property therein, as shown by the last completed assessment for state and county purposes.
5. It shall be the duty of the district to provide for the collection of an annual tax sufficient to pay the interest on the indebtedness as it falls due, and also to constitute a sinking fund for the payment of the principal thereof within the time the principal becomes due.
[71.801. In any city not within a county, real property subject to partial tax abatement under the provisions of chapter 353, RSMo, shall for the purpose of assessment and collection of ad valorem real estate taxes levied under the provisions of sections 71.790 to 71.808 be assessed and ad valorem real estate taxes shall be collected as provided in the ordinance adopted by the governing body of the city approving the development plan of any such corporation and authorizing tax abatement.]
[71.808. The findings of the legislative body of the city of the benefits to be derived by said district as set out in the ordinance as required above shall be conclusive.]