Summary of the Report of
The House Interim Committee Studying Tax Increment Financing
Representative Henry Rizzo, Co-Chair
Representative Tim Green, Co-Chair
The House Interim Committee recognizes the need to revisit the various components and the overall progress of tax increment financing (TIF). In most projects, TIF proposals are crucial components of the success of development and redevelopment of areas that desperately need the increased economic activity and the jobs that come with it. However, the Interim Committee also recognizes that TIF may sometimes be misused or abused to the detriment of certain existing businesses, the general region where the project is located and/or the political subdivisions that rely on the tax revenues that are lost from the use of TIF. Examples cited as problems by the Interim Committee include:
It is important to note that the Interim Committee recognized that many of the aforementioned problems are geographical in nature and may be more severe in urban areas versus rural or even St. Louis versus Kansas City.
The Interim Committee makes no specific recommendation at this time, but does recommend the filing of legislation to address and further the discussion about these issues.