HB131 - TAX INCREMENT FINANCING - Rizzo, Henry C.
HB131 MAKES CHANGES TO REAL PROPERTY TAX INCREMENT ALLOCATION REDEVELOPMENT FINANCING LAWS.
Sponsor: Rizzo, Henry C. (40) Effective Date:00/00/00
CoSponsor: LR Number:0625-01
Last Action: 01/20/97 - Referred: Commerce (H)
01/20/97 - Referred: Commerce (H)
HB131
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
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Available Bill Summaries for HB131
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Available Bill Text for HB131
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Available Fiscal Notes for HB131
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BILL SUMMARIES

INTRODUCED

HB 131 -- Tax Increment Financing

Sponsor:  Rizzo

This bill makes a number of changes to Tax Increment Financing
(TIF) law.  In its main provisions it:

(1) Eliminates "economic development area" as one of the
criteria for establishing a TIF area, and redefines the
"blighted area" criterion.  To qualify as blighted, an area must
either (a) meet certain levels of poverty and unemployment; or
(b) be characterized by one of the physical or economic
conditions listed, such as unsafe or unhealthy buildings,
depreciated property values, high levels of business vacancies
or abandoned buildings, high crime rates, or vacant land.  The
new definition of blight applies to TIF projects approved after
August 28, 1997.

(2) Defines the following terms: "economic activity taxes",
"emergency service tax district", "gambling establishment", and
"special allocation fund";

(3) Allows professional fees-for-services as a recoverable
redevelopment cost, but only if such fees are included as an
initial and up-front expense prior to the initiation of the TIF
project;

(4) Requires developers to submit a signed affidavit with the
redevelopment plan, indicating that the project would not be
developed without the use of TIF;

(5) Requires a cost-benefit analysis as part of the
redevelopment plan which enumerates the economic impact on
taxing jurisdictions if the project is not built, is built with
TIF, and is built without TIF.  The cost-benefit analysis must
also include a fiscal impact study on every affected political
subdivision;

(6) Prohibits TIF plans and projects from including gambling
establishments;

(7) Requires the acquisition of property by eminent domain to
occur within 3 years of the adoption of the ordinance approving
a TIF plan;

(8) Requires municipalities to establish procedures for
obtaining bids and proposals for TIF redevelopment plans;

(9) Provides that any surplus funds in the special allocation
fund be refunded to taxing districts on a proportional basis;

(10) Allows the costs for administering TIF plans to be recouped
by the municipality incurring such costs;

(11) Increases the size of TIF commissions from 9 to 11 members,
excepting commissions within St. Louis City.  The 2 additional
members are to be appointed by the county, except in Jackson
County, where the county legislature will appoint the 2
additional members;

(12) Prohibits the inclusion of special use and sales taxes
within TIF plans 4 years after the effective date of the bill;

(13) Authorizes emergency service tax districts to recoup the
costs of providing emergency services in TIF areas, if evidence
of such costs are provided, and the districts are able to
demonstrate that increased revenues from the TIF projects are
insufficient to pay for the increased emergency services;

(14) Requires the Department of Revenue to promulgate rules and
regulations regarding the collection and distribution of TIF
revenues, namely economic activity taxes and payments in lieu of
taxes;

(15) Clarifies that TIF does not apply to personal property;

(16) Requires municipalities to add summary information on all
TIF applications filed during the calendar year to the currently
required annual report submitted to the Department of Economic
Development (DED);

(17) Requires the DED to promulgate rules and regulations for
the enforcement of the current requirement that municipalities
annually submit a report on TIF projects to the DED;

(18) Authorizes the DED to notify the Director of the Department
of Revenue when a municipality fails to submit the required
report to the DED; in such cases, the Department of Revenue is
to withhold sales tax, tourism tax, or transportation tax
revenues from the municipality, and to instead hold these moneys
in trust, until the required report is submitted; and

(19) Requires the DED to submit an annual report to the General
Assembly, containing summary information submitted by the
municipalities on TIF projects.


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