HB 103 -- TAX INCREMENT FINANCING

SPONSOR:  Portwood

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 12 to 0.

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

(1)  Prohibits the revenue from an increase in any tax within a
TIF district from being used for anything other than the
specified purpose of the tax increase;

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

(3)  Changes the definition of "redevelopment project costs" to
include extraordinary professional service costs which are
required under the Real Property Tax Increment Allocation
Redevelopment Act;

(4)  Requires that conditions and contingencies of commitments to
finance redevelopment project costs be included in the required
general description of a redevelopment plan;

(5)  Requires redevelopment plans adopted by municipal and county
governments to be re-adopted by two-thirds of all members of the
governing body if a petition is submitted according to procedures
established in the bill;

(6)  Requires redevelopment plans adopted by municipal and county
governments to be re-adopted by two-thirds of all members of the
governing body if the TIF Commission makes a negative
recommendation;

(7)  Authorizes TIF projects within the 100-year flood plain in
the City of St. Charles if the redevelopment area actually abuts
a river or major waterway and is substantially surrounded by
contiguous properties with residential, industrial, or commercial
zoning classifications.  Currently, no TIF projects are allowed
in the flood plain in certain areas in St. Charles County;

(8)  Specifies that real property tax revenues attributable to
the residential portion of the development will go directly to
the affected school districts if a TIF project includes
residential uses unless commission members representing the
affected districts decide to forgo this revenue; and

(9)  Requires persons or entities who receive financing on a TIF
project in Kansas City or St. Louis to make good faith efforts to
use minority or women's business enterprises on the project.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that abuses of TIF need to be
curtailed, especially when TIF gives some companies a competitive
economic advantage over existing established local businesses.
The bill establishes more specific guidelines for determining
what constitutes "blight" in an attempt to refocus TIF on its
original purpose of redevelopment, as opposed to development.

Testifying for the bill were Representative Portwood; Missouri
School Boards' Association; and Cooperating School Districts of
Greater Kansas City.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am