HS HB 1496 -- TAX INCREMENT FINANCING (Green, 73)

This substitute defines the following new terms in the Real
Property Tax Increment Allocation Redevelopment Act:  "eligible
employee," "high unemployment," "low-fiscal capacity," "moderate
income," "new job," "public subsidy," "redevelopment project of
regional significance," and "unfair competition."

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

The substitute also limits the maximum amount of public funding
for approved TIF projects to 30% of the total project costs,
unless the redevelopment is occurring in certain specified areas.
The substitute does not allow TIF to be used to develop sites
where 25% or more of the area is vacant and has not been
previously developed, qualifies as "open space" as defined in
Section 67.900, RSMo, or is presently being used for agricultural
or horticultural purposes, except in certain cases.

The substitute requires an economic feasibility analysis
indicating the return on investment of the proposed development
and a study verifying that the proposed redevelopment property
has not previously been developed through private enterprise.  It
allows sharing of payments in lieu of taxes among affected
political subdivisions.  TIF projects must be approved by all
affected political subdivisions.

The substitute 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 substitute and approving or
rejecting the projects.

The substitute has an effective date of July 1, 2003.

FISCAL NOTE:  No impact on state funds.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am