HB 1070 -- Tax Increment Financing

Sponsor:  Johnson (47)

This bill changes the laws regarding tax increment financing
(TIF).  In its main provisions, the bill:

(1)  Changes the definitions of "blighted area" and "conservation
area";

(2)  Removes architectural, engineering, legal, and marketing
costs from professional service costs included within the
definition of "redevelopment project costs";

(3)  Adds a definition of "retail project";

(4)  Requires redevelopment plans adopted by municipal and county
governments to be approved by voters if a referendum petition is
submitted according to procedures established in the bill;

(5)  Increases from 50% to 90% the amount of total additional
revenue from taxes, penalties, and interest that are imposed by a
municipality or other taxing district which must be allocated to
a separate segregated fund within the special allocation fund for
redevelopment plans and projects approved or adopted after
August 31, 1991;

(6)  Increases from 50% to 90% the amount of defined new state
revenues which may be available for appropriation by the General
Assembly to the Department of Economic Development Supplemental
Tax Increment Financing Fund for distribution to municipalities;

(7)  Prohibits TIF from being used to fund more than 22% of the
total estimated costs of a project that is primarily retail or to
develop retail sites where 25% or more of the area is vacant
land, considered open space, or is currently being used for
agricultural or horticultural purposes.  The bill exempts these
types of areas that are part of the redevelopment project and
were included in the municipality's comprehensive plan prior to
January 1, 2004; and

(8)  Requires municipalities to pay 25% of the payments in lieu
of taxes they receive from TIF projects to taxing entities that
would otherwise be entitled to receive revenue from property
taxes.  If a TIF project includes residential uses, real property
tax revenues attributable to the residential portion of the
development will pass through directly to the affected school
districts unless commission members representing the affected
districts say they will forgo this revenue.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:41 am