HB 688 -- Regional Economic Development Districts

Sponsor:  Pollock

This bill establishes the Regional Economic Development District
Law.  In its main provisions, the bill:

(1)  Allows two or more governing bodies to establish a regional
economic development district to plan programs encouraging
economic development within the district.  The governing bodies
must enact identical ordinances or mutually agree to the
district's establishment.  The ordinances or mutual agreements
must specify the qualifications, terms, membership, and powers of
the district's board;

(2)  Allows the district to impose, upon voter approval, a sales
tax within the district to be used for economic development
purposes.  The sales tax rate can be 0.25%, 0.375%, or 0.5%;

(3)  Creates the Regional Economic Development District Sales Tax
Fund for the deposit of all revenue levied from the district's
sales tax;

(4)  Prohibits the revenue from the district's sales tax from
being included in calculations of moneys available to other
special taxing districts that may also be a part of the regional
economic development district.  Other special taxing districts
include tax increment financing districts, neighborhood
improvement districts, and community improvement districts.
Revenue from the regional economic development district's sales
tax can only be used for its purposes and cannot be diverted to
any other special taxing district unless approved by the
district's board;

(5)  Requires the board to make a report available to the public
at least annually on the use of its funds;

(6)  Allows the board to adopt incremental tax financing for the
purposes of the district;

(7)  Specifies the manner in which ad valorem taxes and payments
in lieu of taxes will be divided among affected taxing districts;

(8)  Allows the district to collect 50% of the economic activity
tax revenue received from sales within the district for 25 years;

(9)  Specifies the requirements of a regional economic
development plan;

(10)  Requires that certain findings be made by the board before
adopting a regional economic development plan, including a
determination that the development area has not been subject to
growth and development through private investment and that this
cannot be reasonably expected to occur without the implementation
of regional economic development projects and the adoption of
incremental tax financing; and

(11)  Allows the district to issue bonds to pay for the costs
associated with the regional economic development projects.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am