SCS/HCS/HB 589 - This act makes several changes in the Tax Increment Financing (TIF) law.

The act defines "redevelopment area," "special allocation fund," "gambling establishment", and "economic activity taxes". TIF plans and projects are prohibited from including the development or redevelopment of gambling establishments. In addition, personal property taxes and certain sales and use taxes are excluded from being included as economic activity taxes for TIF projects.

Municipalities must be established for two years or longer before TIF projects may be approved on or after August 28, 1997.

The act 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 and if it is built using TIF. The analysis must also include a fiscal impact study on every affected political subdivision and information indicating the financial history and status of the developer.

Municipalities or TIF commissions are required to establish procedures for obtaining competitive bids and proposals for implementation of the redevelopment projects. For minor changes to the redevelopment plan, project, or area, additional public hearings are not required.

The substitute allows, beginning January 1, 1998, certain blighted TIF areas to be eligible for a rebate of up to 50% of state sales taxes, except those which are constitutionally dedicated, School District Trust Fund taxes, and sales and use taxes on motor vehicles, trailers, boats and outboard motors, or state income tax withholding. Municipalities must apply to the Department of Economic Development for the rebate of state revenues. A new fund, the Missouri Tax Increment Financing Fund, is created in the Department of Revenue, for the rebate of state revenues to municipalities.

A joint legislative committee is established to review existing TIF statutes, beginning in 1999 and every 5 years thereafter, and is required to issue a report based on its review.
RUSS HEMBREE