HB 576 -- Special Taxing Districts

Sponsor:  Diehl

This bill changes the laws regarding neighborhood improvement,
community improvement, and transportation development districts.

NEIGHBORHOOD IMPROVEMENT DISTRICTS

Currently, assessed costs on property divided into parcels within
a neighborhood improvement district are recalculated and
reassessed proportionally to each of the divided parcels.  The
bill allows the city or county that formed the district 60 days
after the recordation of proof of parcel division to reallocate
the costs according to the method of assessment established in
the ballot question or petition forming the district, otherwise
the proportional assessment method must be utilized.

COMMUNITY IMPROVEMENT DISTRICTS

The bill:

(1)  Changes the basis of the determination of ownership of
property within the community improvement district to the real
estate records of the recorder of deeds where the district is
located.  Currently, for various purposes under the community
improvement district law, the determination is made from the tax
records maintained by the county clerk;

(2)  Allows a district board to include up to five legally
authorized representatives of any business operating within the
district if there are fewer than five real property owners within
a district.  Currently, every district is governed by a board
with five to 30 directors, who are either owners of real property
or of a business operating within the district;

(3)  Specifies the manner in which a director's term will be
determined when all directors receive the same number of votes
regarding their term limits;

(4)  Expands the powers that the district can exercise outside
the district's boundaries to include acquiring real and personal
property; abating public nuisances; constructing, maintaining, or
operating a variety of public improvements, including
transportation; and permissively regulating municipal traffic;

(5)  Authorizes districts located in a blighted area to contract
with any private property owner to acquire property owned or to
be owned by a private property owner;

(6)  Allows approval of a district sales tax to be obtained by an
election within the district or, if no registered voters live
within the district, by a unanimous petition of 100% of the
district's property owners verified by the board of directors;
and

(7)  Allows a district to conduct an election pursuant to the
Comprehensive Election Act of 1977 under Sections 115.005 -
115.646, RSMo, or with mail-in ballots pursuant to Sections
115.650 - 115.660.  Section 115.005 will not apply to these
provisions.

TRANSPORTATION DEVELOPMENT DISTRICTS

The bill:

(1)  Defines "owner" as used in the transportation development
district law;

(2)  Authorizes an alternative method by which property may be
added to a district by the unanimous petition of the qualified
voters within the area to be added, followed by public notice and
a public hearing by the district board.  If a written objection
signed by at least 10% of the qualified voters within the
district is filed within seven days after the public hearing, the
issue must be submitted to the qualified voters within the
proposed limits of the district.  Currently, property may be
added to a district by the unanimous petition of the owners of
the property to be added and the unanimous approval of the
property owners within the district;

(3)  Specifies the method by which the vote of a non-individual
in a director election will be cast if no mechanism for that
determination is specified in its organizational or operating
documents;

(4)  Repeals the requirement that directors be residents of the
district;

(5)  Changes the effective date of any sales tax authorized in
the transportation development district law to the first day of
the month designated by the board.  Currently, the tax becomes
effective on the first day of the month following its adoption;

(6)  Allows a decrease in the number of projects a board is
authorized to complete upon a majority vote of the board.
Currently, if a board wants to decrease the number of projects,
it must submit the issue to the voters of the district; and

(7)  Authorizes a district to begin district dissolution election
proceedings after it has provided for the completion and funding
of its project and has transferred ownership and control of the
project to the Highways and Transportation Commission or a local
transportation authority.  A district is also authorized to begin
district dissolution proceedings by petition to a circuit court
after it has completed a project or provided for the completion
and funding of its project and has transferred ownership and
control of the project to the commission or a local
transportation authority.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am