HB 1371 -- RURAL EMPOWERMENT ZONE CRITERIA

SPONSOR:  Wilson (119)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Rural Community Development by a vote of 7 to 0.

Currently, rural empowerment zones are only allowed to exist in
Hickory County, which has a population of 8,940 residents.  This
bill allows these zones to exist in any county with 16,000 or
fewer residents, which includes 50 counties.  The bill also
prohibits more than two rural empowerment zones in any county.

FISCAL NOTE:  Estimated Effect on General Revenue Fund of an
income of $0 to a cost of Unknown - could exceed $5,880,000 in
FY 2009, FY 2010, and FY 2011.  No impact on Other State Funds in
FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that all rural counties face the same
difficulty creating jobs.  There's very little to attract a new
business to rural areas.  The bill exempts a new business that
creates at least 10 new jobs in a small, rural county from paying
state income taxes for 10 years.  These are small counties, with
fewer than 16,000 residents, and they cannot afford to lose any
of their tax base.  That's why the burden must be placed upon the
state to accept the loss.  The new jobs will have a positive
impact, so this program is probably cost-neutral.  This is a
powerful incentive which may reverse the negative economic growth
experienced in rural communities.

Testifying for the bill were Representative Wilson (119);
Associated Industries of Missouri; Taxpayers Research Institute
of Missouri; and Missouri Economic Development Council.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm