HCS HB 1070 -- TAX INCREMENT FINANCING (Johnson, 47)

COMMITTEE OF ORIGIN:  Local Government

This substitute changes the laws regarding tax increment
financing (TIF).  In its main provisions, the substitute:

(1)  Prohibits the revenue from any increase in any tax within a
TIF district from being used for anything other than the
specified purpose of the tax increase (Section 67.112, RSMo);

(2)  Changes the definitions of "blighted area" and "conservation
area" (Section 99.805(1));

(3)  Changes the definition of "redevelopment project costs" to
include extraordinary professional service costs which are
required under the Real Property Tax Increment Allocation
Redevelopment Act (Section 99.805(14));

(4)  Requires that conditions and contingencies of commitments to
finance redevelopment project costs be included in the required
general description of a redevelopment plan (Section 99.810.1);

(5)  Requires redevelopment plans adopted by municipal and county
governments to be re-adopted by two-thirds of all members of the
governing body if a petition is submitted according to procedures
established in the substitute (Section 99.810.2);

(6)  Requires redevelopment plans adopted by municipal and county
governments to be re-adopted by two-thirds of all members of the
governing body if the TIF Commission makes a negative
recommendation (Section 99.820.4);

(7)  Excludes any sales tax imposed by Jackson County for the
purpose of sport stadium improvement from the additional economic
activity revenue allocation (Section 99.845.3);

(8)  Authorizes TIF projects within the 100-year flood plain in
the City of St. Charles if the redevelopment area actually abuts
a river or major waterway and is substantially surrounded by
contiguous properties with residential, industrial, or commercial
zoning classifications.  Currently, no TIF projects are allowed
in the flood plain in certain areas in St. Charles County
(Section 99.847);

(9)  Specifies that if a TIF project includes residential uses,
real property tax revenues attributable to the residential
portion of the development will go directly to the affected
school districts unless commission members representing the
affected districts say they will forgo this revenue (Section
99.866); and

(10)  Requires that those persons or entities receiving the
financing on a TIF project in Kansas City or St. Louis must make
good faith efforts to use minority or women's business
enterprises on the project (Section 1).

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:41 am