HCS/SB 721 - This act modifies provisions of the tax increment financing law and authorizes the imposition of a transient guest tax for the city of Liberty TRANSIENT GUEST TAX FOR LIBERTY (Section 94.837) Current law allows the city of Liberty to impose a transient guest tax with the approval of the voters with the proceeds used solely for the promotion of tourism. This act allows the city of Liberty to impose a transient guest tax with the approval of the voters that may be used for the promotion of tourism and cultural activities, development, construction and operation of convention facilities, the promotion of business development, and the construction of related infrastructure and improvements. This provision is similar to HB 2032 (2012). TAX INCREMENT FINANCING FOR REDEVELOPMENT OF DISASTER AREAS (Sections 99.805, 99.810, 99.835, 99.845, and 99.865) This act modifies certain requirements of tax increment financing laws for redevelopment areas where a majority of the property is located within an area affected by certain natural disasters. This act allows municipalities to adopt redevelopment plans for the purpose of tax increment financing where a majority of the property in the redevelopment area is within a disaster area without a finding that the redevelopment area would not reasonably be anticipated to be developed without tax increment financing. The municipality is also authorized to provide information regarding the financial feasibility of the redevelopment plan itself, rather than requiring the developer to provide it. For a redevelopment project to be eligible for the provisions of law regarding tax increment financing in disaster areas, the municipality must approve the redevelopment project within five years after the date the President declares the disaster. Where a redevelopment area contains a disaster area, all or part of the taxing district's operating costs and debt services costs from the redevelopment project may be included in redevelopment project costs, in addition to the costs that current law allows other redevelopment projects to include. Current law allows, under the State Supplemental Tax Increment Financing program, for the General Assembly to appropriate funds to the Department of Economic Development to provide to municipalities with approved projects in an amount up to fifty percent of the increase in state income tax revenue from new jobs in the project area, or in an amount up to fifty percent of the incremental increase in the general revenue portion of the state sales tax. Under this act, beginning August 28, 2012, the General Assembly may appropriate funds to the newly created Missouri Supplemental Disaster Recovery Fund for the Department of Economic Development to provide to municipalities with approved redevelopment projects in disaster areas in an amount up to fifty percent of the total of: 1) the increase in the amount of income tax employers withhold from all employees of businesses located in the project area; and 2)the incremental increase in the general revenue portion of state sales tax revenues. Particular municipalities will also be allowed to receive additional amounts from this fund, if the amounts are requested by the Department of Economic Development through appropriations. These provisions have an emergency clause. These provisions are similar to SB 777 (2012) and HB 8 (1st Ext. Session 2011). TAX INCREMENT FINANCING IN CERTAIN COUNTIES (Section 99.825) Currently, if after having a hearing, a tax increment financing commission makes a recommendation in opposition to the proposed redevelopment plan, project, or area, the county, city, town, or village may only approve the plan by a two-thirds majority vote of the governing body of the county, city, town, or village. This amendment prohibits St. Louis County, St. Charles County, and Jefferson County, and cities, towns, and villages in these counties from approving a proposed redevelopment plan, unless a majority of the members of a county, city, town, or village tax increment financing commission vote to make a recommendation approving the plan, or the plan is approved by a majority of the voters of the county, city, town, or village at the next regularly scheduled municipal or general election. EXCLUDING CERTAIN SALES TAXES FROM TAX INCREMENT FINANCING (Section 99.845) This act adds sales taxes levied by the Jackson County Transit Authority for the operation of transportation facilities to the list of taxes that may not be deposited into a special allocation fund for the purposes of tax increment financing. This provision is similar to a provision of HCS/SB 668 (2012) and SS#2/SCS/HCS/HB 1623 (2012). EMILY KALMER