SS HCS HB 741 -- ECONOMIC DEVELOPMENT PROGRAMS

This bill changes the laws regarding the Linked Deposit Program,
tax increment financing, biodiesel incentives, regional economic
development districts, and the Missouri Rice Certification Act.

LINKED DEPOSIT PROGRAM

The bill allows an eligible, locally owned business to
participate in the Linked Deposit Program.  The majority
ownership of an eligible, locally owned business must be
comprised of residents of the county in which the business is
headquartered, and the county must have:

(1)  A population of 12,500 or fewer; and

(2)  A median income equal to or less than the state median
income; or

(3)  An unemployment rate equal to or greater than the state
unemployment rate.

TAX INCREMENT FINANCING

The bill:

(1)  Requires, beginning January 1, 2008, any municipality in the
counties of Jefferson, St. Charles, or St. Louis to establish a
county tax increment financing (TIF) commission in the same
manner as St. Louis County.  The bill specifies the membership of
the 12-member commission;

(2)  Requires, beginning January 1, 2008, any municipality in the
counties of Franklin, Jefferson, St. Charles, or St. Louis to
obtain permission from its county TIF commission before
implementing a TIF project;

(3)  Requires, beginning January 1, 2008, a two-thirds majority
vote of a municipality's governing body to overturn a county TIF
commission's recommendation against a proposed TIF redevelopment
plan, project, or area;

(4)  Requires the Joint Committee on Tax Policy to study the
feasibility of establishing a program to allow municipalities to
engage in TIF-like projects, with optional tax abatement in any
area of the municipality without regard to the presence of
blight.  The committee must report its findings to the General
Assembly by December 31, 2007; and

(5)  Authorizes a tax credit, beginning January 1, 2008, for
certain taxpayers who modify their homes to make them accessible
to a disabled person living in the home.  If any portion of the
modification was claimed as a deduction on the taxpayer's federal
income tax return, the amount of the tax credit will be reduced
by the amount of the deduction.  Taxpayers cannot receive this
credit in two consecutive years.  The tax credit has a cap of
$2,500 per taxpayer and an annual cap of $100,000.  The tax
credit is not transferrable but will be refundable.  To the
extent there are tax credits remaining under the $10 million cap
in the Rebuilding Communities Tax Credit Program, the first
remaining $100,000 will be used for this tax credit.

MISSOURI QUALIFIED BIODIESEL PRODUCER INCENTIVE FUND

The bill:

(1)  Removes the current criteria that the biodiesel producer
monthly incentive payment is calculated based on the estimated
gallons of biodiesel produced from agricultural products
originating in Missouri and allows the payment to be based on the
amount of biodiesel produced from agricultural products from any
state;

(2)  Requires a Missouri qualified biodiesel producer to register
with the Department of Agriculture by September 1, 2007; to begin
construction on the biodiesel facility before November 1, 2007;
and to begin producing biodiesel fuel before March 1, 2009; and

(3)  Implements specific payback requirements if a Missouri
qualified biodiesel producer sells the biodiesel facility after
receiving a grant payment from the Missouri Qualified Biodiesel
Producer Initiative Fund.

REGIONAL ECONOMIC DEVELOPMENT DISTRICT LAW

The bill:

(1)  Establishes the Regional Economic Development District Law;

(2)  Allows two or more governing bodies to establish a regional
economic development district to develop 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;

(3)  Allows the district to impose, upon voter approval, a sales
tax of 0.125%, 0.25%, 0.375%, or 0.5% within the district to be
used for the benefit of the district;

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

(5)  Prohibits the revenue from the district's sales tax from
being included in calculations of money available to other
special taxing districts that may also be a part of the regional
economic development district.  Other special taxing districts
include TIF 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;

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

(7)  Allows the board to adopt incremental tax financing for the
purposes of the district; however, this cannot be used for any
retail projects;

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

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

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

(11)  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;

(12)  Prohibits the initial development or redevelopment of
gambling establishments; and

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

MISSOURI RICE CERTIFICATION ACT

The bill:

(1)  Establishes the Missouri Rice Certification Act, which
prohibits the production, transportation, or handling of certain
rice varieties;

(2)  Establishes the Rice Advisory Council, which will consist of
10 members, and specifies its membership, powers, and duties;

(3)  Requires the Department of Agriculture to:

(a)  Prevent the contamination of rice that has not been
identified as having characteristics of commercial impact;

(b)  Specify certain notification requirements for producers,
transporters, and receivers of rice with characteristics of
commercial impact;

(c)  Enforce restrictions on rice with characteristics of
commercial impact; and

(d)  Investigate alleged violations, issue written notices of
violation, and impose penalties for violation; and

(4)  Authorizes a penalty of $10,000 to $100,000 per violation
per day for violating these provisions.

Information relating to the act will not be subject to the Open
Records Law, commonly known as the Sunshine Law.

The provisions regarding the feasibility study by the Joint
Committee on Tax Policy will expire on January 1, 2008; and the
provisions regarding the tax credit for home modifications for a
disabled person will expire on December 31, 2013.  The provisions
regarding the Missouri Rice Certification Act become effective
180 days from the effective date.

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