SB 0066 Revises regulation of tax increment financing
LR Number:0485L.01I Fiscal Note:0485-01
Last Action:12/04/02 - Bill Withdrawn Journal page:S37
Effective Date:July 1, 2004
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Current Bill Summary

SB 66 - This act creates and defines the following new terms in the Real Property Tax Increment Allocation Redevelopment Act: "high unemployment", "low-fiscal capacity", "moderate income", and "new job".

The act changes criteria used to evaluate primarily retail redevelopment projects funded by tax increment financing in the City of St. Louis and in St. Louis, Jefferson, Warren, St. Charles, Franklin, Lincoln, St. Francois and Ste. Genevieve counties.

The act requires approved project areas to have high unemployment, low fiscal capacity, and moderate income; to be a redevelopment project of regional significance; to avoid unfair competition with existing businesses; and to meet other criteria showing economic decline. The act also limits the maximum amount of public funding for approved TIF projects to 30% of the total project costs, unless the redevelopment is occurring in certain specified areas.

The act does not allow TIF to be used to develop sites where 25% or more of the area is vacant and has not been previously developed, qualifies as "open space" as defined in Section 67.900, RSMo, or is presently being used for agricultural or horticultural purposes, except in certain cases.

The act requires an economic feasibility analysis indicating the return on investment of the proposed development and a study verifying that the proposed redevelopment property has not previously been developed through private enterprise. It allows sharing of payments in lieu of taxes among affected political subdivisions. TIF projects must be approved by all affected political subdivisions.

The act also requires the above named counties and the City of St. Louis to create regional tax increment financing review authorities for the purpose of determining whether projects meet the criteria as provided in the act and approving or rejecting the projects.

The act has an effective date of July 1, 2004.