SCS/SB 596 - This act allows the governing bodies of any city in this state to designate Show-me Small Business Districts within such city for no longer than twenty-three years. During such designation period, eligible small businesses within such areas may receive tax-favored status for a term not to exceed fifteen years. Tax-favored status is defined as a reduction to or elimination of the rate of tax on transactions imposed under Missouri's sales and use tax laws and taxes on earnings and profits imposed by certain cities. Show-me small business districts may only be established in blighted areas located within qualified census tracts. The act requires the governing body of a municipality to hold public hearings prior to the adoption of an ordinance designating an area of such municipality as a Show-me small business district. The act requires the governing body to provide notice of such hearings to affected taxing districts and the public. Upon receiving municipal approval, the designation must be approved, at the same rate of tax and term, by the county in which the city is located and by the general assembly through the adoption of a concurrent resolution. Upon the issuance of a certificate of approval from the Department of Economic Development, small businesses located within a Show-me small business district may apply to the Department of Economic Development to receive tax-favored status for a term not to exceed fifteen years. In order to receive tax- favored status, an eligible small business owner must report the amount of taxes deferred, on an availability basis, for the duration of the time in which it receives tax-favored status. Municipalities are prohibited from having more than one duty free zone in existence, within such municipality, at any given time. The act contains a contingent effective date. The provisions of the act will become effective upon voter approval of a constitutional amendment authorizing the creation of tax-free or reduced-tax geographic districts for the purpose of promoting small business development to further economic development. JASON ZAMKUS