SB 1 - This act provides a wide range of economic development incentive programs.
SECTIONS 99.805- 99.865. The act makes the following changes in the Tax Increment Financing (TIF) law:
1. 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.
2. Municipalities must be established for one year or longer before TIF projects or areas may be approved in those municipalities.
3. The act requires a cost-benefit analysis as part of the redevelopment plan which shows 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 status of the developer.
4. 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.
5. The bill allows, beginning January 1, 1998, certain blighted areas of municipalities with approved plans and projects and certain federal levee districts to receive appropriated amounts, from the newly created Missouri supplemental tax increment financing fund, of up to 50% of "new state revenues", defined as either 1) state sales taxes, except those which are constitutionally dedicated, School District Trust Fund taxes, sales and use taxes on motor vehicles, trailers, boats and outboard motors, and future sales taxes earmarked by law, or 2) state income tax withholding. Before the initial appropriation of new state revenues is made, municipalities must satisfy the following conditions: 1) apply to the department of economic development and the office of administration, making the election between sales tax or income tax withholding and providing tax revenue estimates, bond issue information, affidavits signed by the developers specifying that the project would not be developed "but for" the appropriation, and a cost- benefit analysis; and 2) receive a certificate of approval from the department of economic development and the office of administration. An aggregate
annual appropriation of new state revenues for super redevelopment areas is limited to fifteen million dollars. The maximum duration for any redevelopment plan or project receiving new state revenues is fifteen years, unless prior approval for a longer term has been given; the total duration cannot exceed twenty-three years.
SECTIONS 100.255-100.297. The act makes changes to the Missouri Development Finance Board Act. The definition of "development agency" is expanded to include any governmental, quasi-governmental or quasi-public corporation. The definition of "project" is expanded to include office buildings, nursing or retirement facilities, recreational facilities, cultural facilities, public facilities, and job training or other vocational training facilities. The act removes the current requirement that two commercial lenders must deny a loan or bond issue request that exceeds one million dollars for infrastructure facilities projects before such a request may be approved and the loan or bond issued from the infrastructure development fund. The tax credit allowed to owners of defaulted revenue bonds for infrastructure facilities is authorized for any financial institution or guarantor which executes any credit facility as security for such bonds.
SECTION 100.840. The act also increases the limit on the total amount of revenue bonds or notes for certain large-scale development projects (Build Use Incentives for Large Development) from thirty-five million dollars to fifty million dollars.
SECTIONS 135.100-135.247. The act revises certain tax credits available to taxpayers operating new business facilities located within enterprise zones. Existing law prohibits certain new business facilities from qualifying for tax credits after the initial ten-year period, even if the business is expanded. This act would allow taxpayers eligible for enterprise zone tax credits to qualify for new business facility tax credits if otherwise eligible. The act specifies a thirty-day time limit on filing any court challenge to the designation or expansion of an enterprise zone. The act authorizes the department of economic development to create enterprise zones in the cities of St. Louis (SECTION 1) and Clinton.
SECTIONS 135.400-135.405. The act changes the definition of "community development corporation" in the Missouri small business investment tax credit program and caps the total amount of tax credits available for qualified investments in Missouri small businesses at five million dollars.
SECTION 135.460. The act also revises existing law concerning tax credits for contributions to school and youth programs under the Youth Opportunities and Violence Prevention Act. Current law permits only individuals and certain classes of corporations to take the tax credits. The act permits individual proprietorships, partnerships, and S Corporations to take the credits and expands the taxes against which the credits may be taken to include corporation franchise tax, financial institutions tax, and bridge, express, and public utility tax.
SECTIONS 135.500-135.516. The Missouri certified capital company law is amended to cap at ten million dollars the maximum amount of certified capital in one or more certified capital companies in any year for one investor or its affiliate.
SECTION 143.451. The act provides a method for determining qualifying sales, for purposes of state corporate income tax, of an investment funds service corporation. Another provision of the act (SECTION 620.1350) allows such a corporation to make an annual election to compute the portion of income derived from sources within this state under either the single factor formula or the three-part formula of the Multistate Tax Compact.
SECTION 143.805. Current law specifies the order in which various tax credits may be taken against state income tax. The act repeals that requirement.
SECTION 178.895-178.896. The act extends the Community College Job Training tax credit program for another ten years.
SECTIONS 253.500-253.561. The act allows an income tax credit for costs incurred in the rehabilitation of a historic building in a historic district. The credit is allowed in an amount equal to twenty-five percent of total rehabilitation costs if those costs exceed fifty percent of the total basis in the property and the rehabilitation meets the standards of the state historic preservation officer. The tax credit provisions are effective January 1, 1998.
SECTION 447.710. Moneys from the repayment of loans and loan guarantees are to be placed in the Property Reuse Revolving Fund.
SECTION 620.030. The department of economic development is authorized to contract with the Missouri technology corporation, innovation centers, small business development centers, centers for advanced technology, and other entities for the provision of technology application, technology commercialization, and technology development services.
SECTION 620.1039. The act expands the tax credit for qualified research expenses to be allowed against financial institutions tax.
SECTIONS 620.1069-620.1078. Diligent efforts are required to assure that at least thirty percent of the moneys in the Microenterprise Revolving Loan Fund are available to, and reserved for, female-owned microenterprises. The microenterprise loan program is changed to authorize challenge loans to eligible lenders.
SECTION 620.1350 An investment funds service corporation is allowed to make an annual election to compute the portion of income derived from sources within this state under either the single factor formula or the three-part formula of the Multistate Tax Compact.
SECTION 1. The act authorizes the department of economic development to create an enterprise zone in the City of St. Louis.
SECTION 2. The act establishes the International Economic Development Exchange Program for college students and a related advisory committee.
SECTIONS 3-4. The department of economic development is authorized to assist community development corporations in forming a Missouri community development corporation association and is required to establish a public-private partnership to be known as the Missouri Community Development Corporation Initiative.
SECTIONS 5-9. The act creates the St. Louis Regional Sports Complex Authority, composed of eight commissioners, to study and review existing major sports leagues, clubs or franchises and to analyze the possibilities for future growth and expansion of those sports organizations.
SECTIONS 10-15. An income tax credit is authorized for contributions for infrastructure improvements. The total amount of tax credits is limited to two million dollars in any fiscal year.
SECTIONS 16-19. The Missouri housing commission is authorized to establish a two-year pilot project in St. Louis and Kansas City for the purpose of renovating inner city property for subsequent purchase.
SECTION 20. The act creates the Task Force on Trade and Investment, designed to establish international trade and investment opportunities for Missouri business.
SECTIONS 21-23. The act creates the Kansas City Regional Sports Complex Authority, composed of eight commissioners, to study and review existing major sports leagues, clubs or franchises and to analyze the possibilities for future growth and expansion of those sports organizations.
SECTION 24. The act adds two additional members to the Jackson County Sports Complex Authority.
RUSS HEMBREE