SB 777 - This act modifies certain requirements of tax increment financing laws for redevelopment areas where a majority of the property is located within an area affected by certain natural disasters.
This act allows municipalities to adopt redevelopment plans for the purpose of tax increment financing where a majority of the property in the redevelopment area is within a disaster area without a finding that the redevelopment area would not reasonably be anticipated to be developed without tax increment financing. The municipality is also authorized to provide information regarding the financial feasibility of the redevelopment plan itself, rather than requiring the developer to provide it. For a redevelopment project to be eligible for the provisions of law regarding tax increment financing in disaster areas, the municipality must approve the redevelopment project within two years after the date the President declares the disaster.
Where a redevelopment area contains a disaster area, all or part of the taxing district's operating costs and debt services costs from the redevelopment project may be included in redevelopment project costs, in addition to the costs that current law allows other redevelopment projects to include.
Current law allows, under the State Supplemental Tax Increment Financing program, for the General Assembly to appropriate funds to the Department of Economic Development to provide to municipalities with approved projects in an amount up to fifty percent of the increase in state income tax revenue from new jobs in the project area, or in an amount up to fifty percent of the incremental increase in the general revenue portion of the state sales tax. Under this act, beginning August 28, 2012, the General Assembly may appropriate funds to the newly created Missouri Supplemental Disaster Recovery Fund for the Department of Economic Development to provide to municipalities with approved redevelopment projects in disaster areas in an amount up to fifty percent of the total of: 1) the increase in the amount of income tax employers withhold from all employees of businesses located in the project area; and 2)the incremental increase in the general revenue portion of state sales tax revenues. Particular municipalities will also be allowed to receive additional amounts from this fund, if the amounts are requested by the Department of Economic Development through appropriations.
This act contains an emergency clause.
This act is similar to HB 8 (1st Ext. Session 2011).