HB 599 -- Tax Increment Financing

Co-Sponsors:  Green (73), Hanaway, Haywood, Fraser, Reid,
Hollingsworth, McKenna, George, Coleman

This bill changes criteria used to evaluate redevelopment
projects funded by tax increment financing (TIF) in the City of
St. Louis and in St. Louis, Jefferson, Warren, St. Charles,
Franklin, Crawford, Lincoln, St. Francois, Ste. Genevieve, and
Washington counties.  The bill requires approved project areas
to have high unemployment, low fiscal capacity, poverty, be a
redevelopment project of regional significance, avoid unfair
competition with existing business, and meet other criteria
showing economic decline.

The bill creates requirements for retail development, requires
cost analysis of the impact of the proposed development, allows
any affected person to file an action in the circuit court
challenging the project's eligibility, and allows sharing of
payments in lieu of taxes among affected political subdivisions.

The bill also requires the enumerated counties and the City of
St. Louis to create regional tax increment financing review
authorities for the purpose of determining whether projects meet
the criteria as provided in the bill and approve or reject the
projects.

The bill also limits the maximum amount of public funding for
approved TIF projects to 30% of the total project costs.  In
some situations, including areas experiencing high levels of
unemployment or poverty, the share of public funding for TIF
projects may be 50% of the total project's costs.

The bill will become effective July 1, 2002.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:03 pm