HCS HB 840 -- AEROTROPOLIS TRADE INCENTIVE AND TAX CREDIT ACT

SPONSOR:  Zerr (Jones, 117)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Economic
Development by a vote of 21 to 0.

This substitute establishes the Aerotropolis Trade Incentive and
Tax Credit Act to encourage foreign trade by authorizing the
Mayor of the City of St. Louis or the executive officer of
certain counties to designate a gateway zone in a foreign trade
zone or a specified site within 50 miles of Lambert-St. Louis
International Airport, an area within the airport boundaries, or
any area owned or managed by the City of St. Louis Port Authority
by notifying the Department of Economic Development of the
designation.  Certain economic incentives will be available in a
gateway zone for freight forwarders and owners of, tenants in,
and entities operating within eligible facilities.

For all taxable years beginning on or after January 1, 2011, tax
credits are authorized for freight forwarders against income
taxes with the exception of withholding taxes; corporate
franchise taxes; and financial institution taxes.  For all
taxable years beginning on or after January 1, 2013, an exemption
from income and corporate franchise taxes and the retention of
taxes otherwise withheld from employees' wages is authorized for
any tenant or entity operating within an eligible facility.  For
all taxable years beginning on or after January 1, 2013, tax
credits are authorized for owners of qualified facilities against
income taxes with the exception of withholding taxes; corporate
franchise taxes; and financial institution taxes.

The substitute specifies the requirements for freight forwarders
and owners of, tenants in, and entities operating within eligible
facilities to receive benefits and how the benefits will be
calculated.

The tax credits for freight forwarders and owners of eligible
facilities are capped per fiscal year as specified in the
substitute.  Tax credits that are authorized but not issued due
to the annual caps can be carried forward to the next year.  Tax
credits that are authorized before the provisions of the
substitute expire will continue to be issued during the
eligibility period.  An authorized tax credit that exceeds an
applicant's tax liability for a year may be carried forward for
six years, transferred, sold, or assigned.

The City of St. Louis and any county with a designated gateway
zone must establish a board of supervisors that will annually
levy special assessments on eligible facilities located within
the gateway zone that receive benefits provided under the
provisions of the substitute.  Revenues derived from the special
assessments must be used to market and promote the gateway zone
and defined cargo activities of the airport.

The provisions of the substitute will expire six years from the
effective date.

FISCAL NOTE:  Estimated Net Cost on General Revenue Fund of
Unknown greater than $3,755,364 in FY 2012, Unknown greater than
$13,366,761 in FY 2013, and Unknown greater than $23,568,587 in
FY 2014.  No impact on Other State Funds in FY 2012, FY 2013, and
FY 2014.

PROPONENTS:  Supporters say that the bill is essential to create
an international marketplace in Missouri and a demand for our
products internationally.  Lambert-St. Louis International
Airport is not being fully utilized and is capable of becoming a
hub for international trade routes.  The amount of economic
activity generated by these trade routes will be immense.

Testifying for the bill were Representative Jones (117); Senator
Schmitt; Lambert-St. Louis Airport Authority; Missouri Chamber of
Commerce and Industry; St. Louis RCGA; Missouri AFL-CIO; St.
Louis Building and Construction Trades Council; St. Louis County
Economic Council; and Bud Gruchalla.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
96th General Assembly, 1st Regular Session
Last Updated August 9, 2011 at 1:26 pm