HB 1957 -- Duty-Free Zones

Sponsor:  Hughes

This bill establishes the Duty Free Zones Act which will only go
into effect upon voter approval of a constitutional amendment
authorizing the creation of tax-free or reduced-tax zones.

The governing body of any city may designate a portion of the
city as a duty-free zone and grant the district tax favored
status for up to 23 years by adopting an ordinance.  The
ordinance must contain:

(1)  A statement that the proposed duty-free zone is a blighted
area located within a qualified census tract;

(2)  The reduced tax rate or tax favored status granted to the
zone;

(3)  The term and conditions of the tax favored status;

(4)  The general boundaries of the proposed duty-free zone by
street location; and

(5)  The name of the duty-free zone, which must represent the
zone's historical significance to the city.

Prior to the adoption of the ordinance, the city must hold a
public hearing.  The bill specifies the requirements for the
hearing including the public's notification.

The city cannot provide a duty-free zone with tax favored status
unless the ordinance adopted by the city's governing body is
approved by the Missouri Development Finance Board within the
Department of Economic Development.  Upon adoption of the
ordinance, the city must submit an application to the department
for review.  The department will submit an analysis and
recommendation to the board, which will determine whether or not
the zone's designation should be approved.  The bill specifies
the requirements of the application, which must include an
affidavit attesting to the fact that the proposed zone is a
blighted area.  The department must make all reasonable efforts
to process applications within 60 days of receipt.

Upon approval of tax favored status for a duty-free zone, a
certificate of approval will be issued by the department
containing the reduced tax rate or tax favored status and the
term.  Any business located within the duty-free zone may receive
tax favored status for up to 15 years.

No city may have more than one duty-free zone at any given time.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm