SB 22
Modifies provisions relating to tax increment financing
Sponsor:
LR Number:
0787S.05S
Committee:
Last Action:
5/13/2021 - In Conference
Journal Page:
Title:
CCS SS SB 22
Calendar Position:
2
Effective Date:
August 28, 2021
House Handler:

Current Bill Summary

CCS/SS/SB 22 - This act modifies several provisions relating to redevelopment in certain areas.

COMMUNITY IMPROVEMENT DISTRICTS

Current law requires a petition for the creation of a community improvement district (CID) to include a five year plan describing the improvements to be made in the district. This act requires such plan to include the anticipated sources of funds and the term of such sources used to pay the costs of such improvements. This act also limits the duration of a CID to twenty-seven years for CIDs formed after August 28, 2021.

Upon the creation of a district, this act requires the municipal clerk of the municipality to report in writing to the State Auditor in addition to the Missouri Department of Economic Development. (Section 67.1421)

For CIDs established after August 28, 2021, in which there are no registered voters, this act requires at least one director to be a person who resides within the municipality, is registered to vote, has no financial interest in any real property or business operating within the CID, and to not be a relative within the second degree of consanguinity to an owner of real property or a business operating within the CID. (Section 67.1451)

This act requires all construction contracts entered into after August 28, 2021, and that are in excess of $5,000 shall be competitively bid and shall be awarded to the lowest and best bidder. (Section 67.1461)

In its annual report filed with the Department of Economic Development, this act requires a CID to include the dates the district adopted its annual budget, submitted its proposed annual budget to the municipality, and submitted its annual report to the municipal clerk. (Section 67.1471)

These provisions are substantially similar to HB 213 (2021) and to provisions contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021) and HS/HCS/HB 441 (2021).

REDEVELOPMENT DISTRICTS

This act modifies the definition of "blighted area" for the purposes of several redevelopment districts, including Community Improvement Districts, the Housing Authorities Law, Land Clearance for Redevelopment, Downtown and Rural Economic Stimulus Act, the Downtown Revitalization Preservation Program, the Planned Industrial Expansion Law, Enhanced Enterprise Zones, Urban Agriculture Zones, and the Urban Redevelopment Corporations Law. (Sections 67.1401 to 99.320, 99.918 to 135.950, 262.900 to 353.020)

These provisions are identical to provisions contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021) and are substantially similar to provisions contained in HCS/HB 555 (2021).

TAX INCREMENT FINANCING

This act modifies the definitions of "blighted area" and "conservation area", and creates new definitions for "port infrastructure projects", "retail area", and "retail infrastructure projects". (Section 99.805)

This act modifies local tax increment financing projects by providing that a study shall be conducted by a land use planner, urban planner, licensed architect, licensed commercial real estate appraiser, or licensed attorney, which details how the area meets the definition of an area eligible to receive tax increment financing.

This act also provides that retail areas, as defined in the act, shall not receive tax increment financing unless such financing is exclusively utilized to fund retail infrastructure projects, as defined in the act, or unless such area is a blighted or conservation area. (Section 99.810)

Current law requires cities, towns, and villages located in St. Louis County, St. Charles County, or Jefferson County to establish a twelve member commission that shall include six members appointed by the county executive or presiding commissioner prior to the adoption of any resolution or ordinance approving tax increment financing projects. This act adds Cass County to such list of counties. (Section 99.820)

For tax increment financing projects approved or amended after December 31, 2021, the City of St. Louis may provide for the deposit of up to 10% of the tax increment financing revenues generated by the project into a Strategic Infrastructure for Economic Growth Fund to be established by the city. Moneys deposited in such fund may be expended by the city for the purpose of funding capital investments in public infrastructure that is located in a census tract that is defined as a low-income community or is eligible to be designated as a Qualified Opportunity Zone under federal law. (Section 99.821)

This act prohibits new projects from being authorized in any Greenfield area. (Section 99.843)

Beginning January 1, 2022, this act also prohibits new projects from being authorized in an area designated as a flood plain by the Federal Emergency Management Agency unless such projects are located in 1) Jackson, Platte, Clay, or Cole counties; 2) the cities of Springfield, St. Joseph, Hannibal, or Jefferson City, 3) in a port district, provided such financing is utilized for port infrastructure projects; or 4) in a levee or drainage district created prior to August 28, 2021. Projects in flood plains shall not be authorized in St. Charles County unless the redevelopment area actually abuts a river or major waterway, as described in the act. (Section 99.847)

Current law allows districts and counties imposing a property tax for the purposes of providing emergency services to be entitled to reimbursement from the special allocation fund of a portion of the district's or county's tax increment. For projects approved after August 28, 2021, this act modifies such provision to allow reimbursement to ambulance districts, fire protection districts, and governing bodies operating a 911 center providing dispatch services and which impose economic activity taxes for such purposes. (Section 99.848)

These provisions are identical to provisions contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), are substantially similar to HB 1612 (2020), HCS/SS/SCS/SB 108 (2019), and HB 698 (2019), and to provisions contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), and HCS/SS#2/SB 704 (2020), and are similar to SB 871 (2020), SB 311 (2019), HB 32 (2019), and SS/SCS/SB 859 (2018).

URBAN FARMS TAX CREDIT

This act authorizes a tax credit in an amount equal to fifty percent of a taxpayer's expenses incurred in the construction or development of establishing or improving an urban farm in an urban area, as such terms are defined in the act.

The tax credit shall not exceed $5,000 for any single urban farm and shall not be transferable or refundable, but may be carried forward for three years. The total amount of tax credits authorized under this act shall not exceed $100,000 in any calendar year.

This act shall sunset after six years unless reauthorized by the General Assembly. (Section 135.1610)

This provision is identical to SCS/SB 82 (2021) and HCS/HB 1586 (2020), and to a provision contained in CCS/HCS/SB 365 (2021), and is substantially similar to HB 652 (2021) and HB 720 (2021).

SOCIALLY DISADVANTAGED COMMUNITIES OUTREACH PROGRAM

This act creates the "Socially Disadvantaged Communities Outreach Program" within the Department of Agriculture. The program shall connect historically unserved and underserved urban communities with access to healthy fresh food and knowledge and skills related to food production, as described in the act.

The Department shall submit an annual report to the General Assembly detailing the number of residents who received training pursuant to the act, the number of urban farm tax credits issued pursuant to the act, and any recommendations for legislative action to improve the program. (Section 261.021)

This provision is identical to a provision contained in CCS/HCS/SB 365 (2021) and HB 652 (2021), and is similar to HB 1411 (2021).

JOSH NORBERG