SB 722
Modifies provisions relating to tax increment financing
LR Number:
Last Action:
4/6/2023 - Second Read and Referred S Economic Development and Tax Policy Committee
Journal Page:
Effective Date:
August 28, 2023

Current Bill Summary

SB 722 - This act modifies the definition of "blighted area" for the purposes of tax increment financing (TIF). Such areas shall be in a distressed community and be insanitary or unsafe for living or working; shall have unemployment one and one-half times greater than the average for the state; or have a median household income of less than fifty percent of the median household income of the metropolitan statistical area in which the area is located. (Section 99.805)

A redevelopment plan shall include all federal, state, county, and municipal tax incentives received as sources of funds for the redevelopment plan. Such redevelopment plan shall also include a study stating that the project was not developed through private enterprise, and shall also include an economic feasibility analysis that indicates whether a return on investment is expected without public assistance. (Section 99.810)

This act exempts redevelopment projects from funding limits for TIF projects associated with a geospatial intelligence federal employer in St. Louis City if such projects consist solely of public infrastructure improvements on public land that requires less than $2 million in TIF financing and will pay off its bonds in seven years or less. (Section 99.811)

This act requires a municipality to pay an amount equal to 25% of payments in lieu of taxes received for a TIF project to all other taxing entities in the municipality that are entitled to receive property tax revenue. Such amount shall be distributed pro rata to such entities. If a TIF project includes residential uses, real property tax levies attributable to the residential portion shall be distributed to the local school district or districts. (Section 99.812)

This act requires the Department of Economic Development to annually submit a report to the Governor and the General Assembly that provides certain information regarding TIF projects in the state, as described in the act. (Section 99.813)

Redevelopment districts providing emergency services in certain municipalities and counties, as described in the act, shall be entitled to reimbursement from a TIF special allocation fund in an amount between 25%-100% of such revenue. (Section 99.814)

This act adds blighted areas located in distressed communities to the areas eligible to receive state revenues for a TIF project. Additionally, this act prohibits redevelopment projects unless all school districts in the redevelopment area have low fiscal capacity, as defined in the act; all census blocks or groups have high unemployment, as defined in the act; or all municipalities or census blocks or groups are characterized by moderate income, as defined in the act. (Section 99.845)

This act is identical to SB 147 (2021) and HB 1585 (2020).



No Amendments Found.