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SECOND REGULAR SESSION
HOUSE BILL NO. 1203
92ND GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES YATES (Sponsor), DEMPSEY, STEVENSON, DUSENBERG,
BAKER, CUNNINGHAM (86), RUESTMAN, PEARCE, HOBBS AND HARRIS (110) (Co-sponsors).
Read 1st time January 21, 2004, and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
3409L.01I
AN ACT
To repeal section 99.845, RSMo, as enacted by conference committee substitute for senate
substitute for senate committee substitute for house committee substitute for house bill
no. 289, ninety-second general assembly, first regular session and senate bill no. 235,
ninety-second general assembly, first regular session, and section 99.845, RSMo, as
enacted by senate committee substitute for senate bill no. 620, ninety-second general
assembly, first regular session, and to enact in lieu thereof one new section relating to
school board approval of tax increment financing.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 99.845, RSMo, as enacted by conference committee substitute for
senate substitute for senate committee substitute for house committee substitute for house bill
no. 289, ninety-second general assembly, first regular session and senate bill no. 235, ninety-second general assembly, first regular session, and section 99.845, RSMo, as enacted by senate
committee substitute for senate bill no. 620, ninety-second general assembly, first regular
session, is repealed and one new section enacted in lieu thereof, to be known as section 99.845,
to read as follows:
99.845. 1. A municipality, either at the time a redevelopment project is approved or, in
the event a municipality has undertaken acts establishing a redevelopment plan and
redevelopment project and has designated a redevelopment area after the passage and approval
of sections 99.800 to 99.865 but prior to August 13, 1982, which acts are in conformance with
the procedures of sections 99.800 to 99.865, may adopt tax increment allocation financing by
passing an ordinance providing that after the total equalized assessed valuation of the taxable real
property in a redevelopment project exceeds the certified total initial equalized assessed
valuation of the taxable real property in the redevelopment project, the ad valorem taxes, and
payments in lieu of taxes, if any, arising from the levies upon taxable real property in such
redevelopment project by taxing districts and tax rates determined in the manner provided in
subsection 2 of section 99.855 each year after the effective date of the ordinance until
redevelopment costs have been paid shall be divided as follows:
(1) That portion of taxes, penalties and interest levied upon each taxable lot, block, tract,
or parcel of real property which is attributable to the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property in the area selected for the redevelopment
project shall be allocated to and, when collected, shall be paid by the county collector to the
respective affected taxing districts in the manner required by law in the absence of the adoption
of tax increment allocation financing;
(2) (a) Payments in lieu of taxes attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or parcel of real property in the area selected
for the redevelopment project and any applicable penalty and interest over and above the initial
equalized assessed value of each such unit of property in the area selected for the redevelopment
project shall be allocated to and, when collected, shall be paid to the municipal treasurer who
shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation
Fund" of the municipality for the purpose of paying redevelopment costs and obligations incurred
in the payment thereof. Payments in lieu of taxes which are due and owing shall constitute a lien
against the real estate of the redevelopment project from which they are derived and shall be
collected in the same manner as the real property tax, including the assessment of penalties and
interest where applicable. The municipality may, in the ordinance, pledge the funds in the
special allocation fund for the payment of such costs and obligations and provide for the
collection of payments in lieu of taxes, the lien of which may be foreclosed in the same manner
as a special assessment lien as provided in section 88.861, RSMo. No part of the current
equalized assessed valuation of each lot, block, tract, or parcel of property in the area selected
for the redevelopment project attributable to any increase above the total initial equalized
assessed value of such properties shall be used in calculating the general state school aid formula
provided for in section 163.031, RSMo, until such time as all redevelopment costs have been
paid as provided for in this section and section 99.850;
(b) Notwithstanding any provisions of this section to the contrary, for purposes of
determining the limitation on indebtedness of local government pursuant to article VI, section
26(b) of the Missouri Constitution, the current equalized assessed value of the property in an area
selected for redevelopment attributable to the increase above the total initial equalized assessed
valuation shall be included in the value of taxable tangible property as shown on the last
completed assessment for state or county purposes;
(c) The county assessor shall include the current assessed value of all property within
the taxing district in the aggregate valuation of assessed property entered upon the assessor's
book and verified pursuant to section 137.245, RSMo, and such value shall be utilized for the
purpose of the debt limitation on local government pursuant to article VI, section 26(b) of the
Missouri Constitution;
(3) For purposes of this section, "levies upon taxable real property in such redevelopment
project by taxing districts" shall not include the blind pension fund tax levied under the authority
of article III, section 38(b) of the Missouri Constitution, or the merchants' and manufacturers'
inventory replacement tax levied under the authority of subsection 2 of section 6 of article X, of
the Missouri Constitution, except in redevelopment project areas in which tax increment
financing has been adopted by ordinance pursuant to a plan approved by vote of the governing
body of the municipality taken after August 13, 1982, and before January 1, 1998.
2. In addition to the payments in lieu of taxes described in subdivision (2) of subsection
1 of this section, for redevelopment plans and projects adopted or redevelopment projects
approved by ordinance after July 12, 1990, and prior to August 31, 1991, fifty percent of the total
additional revenue from taxes, penalties and interest imposed by the municipality, or other taxing
districts, which are generated by economic activities within the area of the redevelopment project
over the amount of such taxes generated by economic activities within the area of the
redevelopment project in the calendar year prior to the adoption of the redevelopment project by
ordinance, while tax increment financing remains in effect, but excluding taxes imposed on sales
or charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant
to section 70.500, RSMo, licenses, fees or special assessments other than payments in lieu of
taxes and any penalty and interest thereon, or, effective January 1, 1998, taxes levied pursuant
to section 94.660, RSMo, for the purpose of public transportation, shall be allocated to, and paid
by the local political subdivision collecting officer to the treasurer or other designated financial
officer of the municipality, who shall deposit such funds in a separate segregated account within
the special allocation fund. Any provision of an agreement, contract or covenant entered into
prior to July 12, 1990, between a municipality and any other political subdivision which provides
for an appropriation of other municipal revenues to the special allocation fund shall be and
remain enforceable.
3. In addition to the payments in lieu of taxes described in subdivision (2) of subsection
1 of this section, for redevelopment plans and projects adopted or redevelopment projects
approved by ordinance after August 31, 1991, fifty percent of the total additional revenue from
taxes, penalties and interest which are imposed by the municipality or other taxing districts, and
which are generated by economic activities within the area of the redevelopment project over the
amount of such taxes generated by economic activities within the area of the redevelopment
project in the calendar year prior to the adoption of the redevelopment project by ordinance,
while tax increment financing remains in effect, but excluding personal property taxes, taxes
imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels,
taxes levied pursuant to section 70.500, RSMo, or effective January 1, 1998, taxes levied for the
purpose of public transportation pursuant to section 94.660, RSMo, licenses, fees or special
assessments other than payments in lieu of taxes and penalties and interest thereon, shall be
allocated to, and paid by the local political subdivision collecting officer to the treasurer or other
designated financial officer of the municipality, who shall deposit such funds in a separate
segregated account within the special allocation fund.
4. Beginning January 1, 1998, for redevelopment plans and projects adopted or
redevelopment projects approved by ordinance and which have complied with subsections 4 to
12 of this section, in addition to the payments in lieu of taxes and economic activity taxes
described in subsections 1, 2 and 3 of this section, up to fifty percent of the new state revenues,
as defined in subsection 8 of this section, estimated for the businesses within the project area and
identified by the municipality in the application required by subsection 10 of this section, over
and above the amount of such taxes reported by businesses within the project area as identified
by the municipality in their application prior to the approval of the redevelopment project by
ordinance, while tax increment financing remains in effect, may be available for appropriation
by the general assembly as provided in subsection 10 of this section to the department of
economic development supplemental tax increment financing fund, from the general revenue
fund, for distribution to the treasurer or other designated financial officer of the municipality
with approved plans or projects.
5. The treasurer or other designated financial officer of the municipality with approved
plans or projects shall deposit such funds in a separate segregated account within the special
allocation fund established pursuant to section 99.805.
6. No transfer from the general revenue fund to the Missouri supplemental tax increment
financing fund shall be made unless an appropriation is made from the general revenue fund for
that purpose. No municipality shall commit any state revenues prior to an appropriation being
made for that project. For all redevelopment plans or projects adopted or approved after
December 23, 1997, appropriations from the new state revenues shall not be distributed from the
Missouri supplemental tax increment financing fund into the special allocation fund unless the
municipality's redevelopment plan ensures that one hundred percent of payments in lieu of taxes
and fifty percent of economic activity taxes generated by the project shall be used for eligible
redevelopment project costs while tax increment financing remains in effect. This account shall
be separate from the account into which payments in lieu of taxes are deposited, and separate
from the account into which economic activity taxes are deposited.
7. In order for the redevelopment plan or project to be eligible to receive the revenue
described in subsection 4 of this section, the municipality shall comply with the requirements of
subsection 10 of this section prior to the time the project or plan is adopted or approved by
ordinance. The director of the department of economic development and the commissioner of
the office of administration may waive the requirement that the municipality's application be
submitted prior to the redevelopment plan's or project's adoption or the redevelopment plan's or
project's approval by ordinance.
8. For purposes of this section, "new state revenues" means:
(1) The incremental increase in the general revenue portion of state sales tax revenues
received pursuant to section 144.020, RSMo, excluding sales taxes that are constitutionally
dedicated, taxes deposited to the school district trust fund in accordance with section 144.701,
RSMo, sales and use taxes on motor vehicles, trailers, boats and outboard motors and future sales
taxes earmarked by law. In no event shall the incremental increase include any amounts
attributable to retail sales unless the municipality or authority has proven to the Missouri
development finance board and the department of economic development and such entities have
made a finding that the sales tax increment attributable to retail sales is from new sources which
did not exist in the state during the baseline year. The incremental increase in the general
revenue portion of state sales tax revenues for an existing or relocated facility shall be the
amount that current state sales tax revenue exceeds the state sales tax revenue in the base year
as stated in the redevelopment plan as provided in subsection 10 of this section; or
(2) The state income tax withheld on behalf of new employees by the employer pursuant
to section 143.221, RSMo, at the business located within the project as identified by the
municipality. The state income tax withholding allowed by this section shall be the
municipality's estimate of the amount of state income tax withheld by the employer within the
redevelopment area for new employees who fill new jobs directly created by the tax increment
financing project.
9. Subsection 4 of this section shall apply only to blighted areas located in enterprise
zones, pursuant to sections 135.200 to 135.256, RSMo, blighted areas located in federal
empowerment zones, or to blighted areas located in central business districts or urban core areas
of cities which districts or urban core areas at the time of approval of the project by ordinance,
provided that the enterprise zones, federal empowerment zones or blighted areas contained one
or more buildings at least fifty years old; and
(1) Suffered from generally declining population or property taxes over the twenty-year
period immediately preceding the area's designation as a project area by ordinance; or
(2) Was a historic hotel located in a county of the first classification without a charter
form of government with a population according to the most recent federal decennial census in
excess of one hundred fifty thousand and containing a portion of a city with a population
according to the most recent federal decennial census in excess of three hundred fifty thousand.
10. The initial appropriation of up to fifty percent of the new state revenues authorized
pursuant to subsections 4 and 5 of this section shall not be made to or distributed by the
department of economic development to a municipality until all of the following conditions have
been satisfied:
(1) The director of the department of economic development or his or her designee and
the commissioner of the office of administration or his or her designee have approved a tax
increment financing application made by the municipality for the appropriation of the new state
revenues. The municipality shall include in the application the following items in addition to the
items in section 99.810:
(a) The tax increment financing district or redevelopment area, including the businesses
identified within the redevelopment area;
(b) The base year of state sales tax revenues or the base year of state income tax withheld
on behalf of existing employees, reported by existing businesses within the project area prior to
approval of the redevelopment project;
(c) The estimate of the incremental increase in the general revenue portion of state sales
tax revenue or the estimate for the state income tax withheld by the employer on behalf of new
employees expected to fill new jobs created within the redevelopment area after redevelopment;
(d) The official statement of any bond issue pursuant to this subsection after December
23, 1997;
(e) An affidavit that is signed by the developer or developers attesting that the provisions
of subdivision (1) of section 99.810 have been met and specifying that the redevelopment area
would not be reasonably anticipated to be developed without the appropriation of the new state
revenues;
(f) The cost-benefit analysis required by section 99.810 includes a study of the fiscal
impact on the state of Missouri; and
(g) The statement of election between the use of the incremental increase of the general
revenue portion of the state sales tax revenues or the state income tax withheld by employers on
behalf of new employees who fill new jobs created in the redevelopment area;
(h) The name, street and mailing address, and phone number of the mayor or chief
executive officer of the municipality;
(i) The street address of the development site;
(j) The three-digit North American Industry Classification System number or numbers
characterizing the development project;
(k) The estimated development project costs;
(l) The anticipated sources of funds to pay such development project costs;
(m) Evidence of the commitments to finance such development project costs;
(n) The anticipated type and term of the sources of funds to pay such development
project costs;
(o) The anticipated type and terms of the obligations to be issued;
(p) The most recent equalized assessed valuation of the property within the development
project area;
(q) An estimate as to the equalized assessed valuation after the development project area
is developed in accordance with a development plan;
(r) The general land uses to apply in the development area;
(s) The total number of individuals employed in the development area, broken down by
full-time, part-time, and temporary positions;
(t) The total number of full-time equivalent positions in the development area;
(u) The current gross wages, state income tax withholdings, and federal income tax
withholdings for individuals employed in the development area;
(v) The total number of individuals employed in this state by the corporate parent of any
business benefitting from public expenditures in the development area, and all subsidiaries
thereof, as of December thirty- first of the prior fiscal year, broken down by full-time, part-time,
and temporary positions;
(w) The number of new jobs to be created by any business benefiting from public
expenditures in the development area, broken down by full-time, part-time, and temporary
positions;
(x) The average hourly wage to be paid to all current and new employees at the project
site, broken down by full-time, part-time, and temporary positions;
(y) For project sites located in a metropolitan statistical area, as defined by the federal
Office of Management and Budget, the average hourly wage paid to nonmanagerial employees
in this state for the industries involved at the project, as established by the United States Bureau
of Labor Statistics;
(z) For project sites located outside of metropolitan statistical areas, the average weekly
wage paid to nonmanagerial employees in the county for industries involved at the project, as
established by the United States Department of Commerce;
(aa) A list of other community and economic benefits to result from the project;
(bb) A list of all development subsidies that any business benefiting from public
expenditures in the development area has previously received for the project, and the name of
any other granting body from which such subsidies are sought;
(cc) A list of all other public investments made or to be made by this state or units of
local government to support infrastructure or other needs generated by the project for which the
funding [pursuant to this act] under the real property tax increment allocation
redevelopment act is being sought;
(dd) A statement as to whether the development project may reduce employment at any
other site, within or without the state, resulting from automation, merger, acquisition, corporate
restructuring, relocation, or other business activity;
(ee) A statement as to whether or not the project involves the relocation of work from
another address and if so, the number of jobs to be relocated and the address from which they
are to be relocated;
(ff) A list of competing businesses in the county containing the development area and
in each contiguous county;
(gg) A market study for the development area;
(hh) A certification by the chief officer of the applicant as to the accuracy of the
development plan;
(2) The methodologies used in the application for determining the base year and
determining the estimate of the incremental increase in the general revenue portion of the state
sales tax revenues or the state income tax withheld by employers on behalf of new employees
who fill new jobs created in the redevelopment area shall be approved by the director of the
department of economic development or his or her designee and the commissioner of the office
of administration or his or her designee. Upon approval of the application, the director of the
department of economic development or his or her designee and the commissioner of the office
of administration or his or her designee shall issue a certificate of approval. The department of
economic development may request the appropriation following application approval;
(3) The appropriation shall be either a portion of the estimate of the incremental increase
in the general revenue portion of state sales tax revenues in the redevelopment area or a portion
of the estimate of the state income tax withheld by the employer on behalf of new employees
who fill new jobs created in the redevelopment area as indicated in the municipality's application,
approved by the director of the department of economic development or his or her designee and
the commissioner of the office of administration or his or her designee. At no time shall the
aggregate annual appropriation of the new state revenues for redevelopment areas exceed fifteen
million dollars;
(4) Redevelopment plans and projects receiving new state revenues shall have a duration
of up to fifteen years, unless prior approval for a longer term is given by the director of the
department of economic development or his or her designee and the commissioner of the office
of administration or his or her designee; except that, in no case shall the duration exceed
twenty-three years.
11. In addition to the areas authorized in subsection 9 of this section, the funding
authorized pursuant to subsection 4 of this section shall also be available in a federally approved
levee district, where construction of a levee begins after December 23, 1997, and which is
contained within a county of the first classification without a charter form of government with
a population between fifty thousand and one hundred thousand inhabitants which contains all
or part of a city with a population in excess of four hundred thousand or more inhabitants.
12. There is hereby established within the state treasury a special fund to be known as
the "Missouri Supplemental Tax Increment Financing Fund", to be administered by the
department of economic development. The department shall annually distribute from the
Missouri supplemental tax increment financing fund the amount of the new state revenues as
appropriated as provided in the provisions of subsections 4 and 5 of this section if and only if the
conditions of subsection 10 of this section are met. The fund shall also consist of any gifts,
contributions, grants or bequests received from federal, private or other sources. Moneys in the
Missouri supplemental tax increment financing fund shall be disbursed per project pursuant to
state appropriations.
13. All personnel and other costs incurred by the department of economic development
for the administration and operation of subsections 4 to 12 of this section shall be paid from the
state general revenue fund. On an annual basis, the general revenue fund shall be reimbursed for
the full amount of such costs by the developer or developers of the project or projects for which
municipalities have made tax increment financing applications for the appropriation of new state
revenues, as provided for in subdivision (1) of subsection 10 of this section. The amount of costs
charged to each developer shall be based upon the percentage arrived at by dividing the monetary
amount of the application made by each municipality for a particular project by the total
monetary amount of all applications received by the department of economic development.
14. For redevelopment plans or projects approved by ordinance that result in net new
jobs from the relocation of a national headquarters from another state to the area of the
redevelopment project, the economic activity taxes and new state tax revenues shall not be based
on a calculation of the incremental increase in taxes as compared to the base year or prior
calendar year for such redevelopment project, rather the incremental increase shall be the amount
of total taxes generated from the net new jobs brought in by the national headquarters from
another state. In no event shall this subsection be construed to allow a redevelopment project
to receive an appropriation in excess of up to fifty percent of the new state revenues.
15. For all municipality redevelopment plans and projects undertaken after August
28, 2004, except for projects undertaken in blighted areas located in central business
districts, as those terms are defined in section 99.918, and except for projects undertaken
under subsection 9 of this section, this section shall apply to a municipality's redevelopment
plans and projects in redevelopment areas consisting of or containing residential and
multifamily properties only upon approval of the tax increment allocation financing
proposal by the school board or boards of the school district or districts in which the
residential or multifamily properties are located.
[99.845. 1. A municipality, either at the time a
redevelopment project is approved or in the event a municipality has
undertaken acts establishing a redevelopment plan and redevelopment
project and has designated a redevelopment area after the passage and
approval of sections 99.800 to 99.865 but prior to August 13, 1982,
which acts are in conformance with the procedures of sections 99.800
to 99.865, may adopt tax increment allocation financing by passing
an ordinance providing that after the total equalized assessed
valuation of the taxable real property in a redevelopment project
exceeds the certified total initial equalized assessed valuation of the
taxable real property in the redevelopment project, the ad valorem
taxes, and payments in lieu of taxes, if any, arising from the levies
upon taxable real property in such redevelopment project by taxing
districts and tax rates determined in the manner provided in
subsection 2 of section 99.855 each year after the effective date of the
ordinance until redevelopment costs have been paid shall be divided
as follows:
(1) That portion of taxes, penalties and interest levied upon
each taxable lot, block, tract, or parcel of real property which is
attributable to the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property in the area selected
for the redevelopment project shall be allocated to and, when
collected, shall be paid by the county collector to the respective
affected taxing districts in the manner required by law in the absence
of the adoption of tax increment allocation financing;
(2) Payments in lieu of taxes attributable to the increase in the
current equalized assessed valuation of each taxable lot, block, tract,
or parcel of real property in the area selected for the redevelopment
project and any applicable penalty and interest over and above the
initial equalized assessed value of each such unit of property in the
area selected for the redevelopment project shall be allocated to and,
when collected, shall be paid to the municipal treasurer who shall
deposit such payment in lieu of taxes into a special fund called the
"Special Allocation Fund" of the municipality for the purpose of
paying redevelopment costs and obligations incurred in the payment
thereof. Payments in lieu of taxes which are due and owing shall
constitute a lien against the real estate of the redevelopment project
from which they are derived and shall be collected in the same
manner as the real property tax, including the assessment of penalties
and interest where applicable. The municipality may, in the
ordinance, pledge the funds in the special allocation fund for the
payment of such costs and obligations and provide for the collection
of payments in lieu of taxes, the lien of which may be foreclosed in
the same manner as a special assessment lien as provided in section
88.861, RSMo. No part of the current equalized assessed valuation
of each lot, block, tract, or parcel of property in the area selected for
the redevelopment project attributable to any increase above the total
initial equalized assessed value of such properties shall be used in
calculating the general state school aid formula provided for in
section 163.031, RSMo, until such time as all redevelopment costs
have been paid as provided for in this section and section 99.850;
(3) For purposes of this section, "levies upon taxable real
property in such redevelopment project by taxing districts" shall not
include the blind pension fund tax levied under the authority of article
III, section 38(b) of the Missouri Constitution, or the merchants' and
manufacturers' inventory replacement tax levied under the authority
of subsection 2 of section 6 of article X, of the Missouri Constitution,
except in redevelopment project areas in which tax increment
financing has been adopted by ordinance pursuant to a plan approved
by vote of the governing body of the municipality taken after August
13, 1982, and before January 1, 1998.
2. In addition to the payments in lieu of taxes described in
subdivision (2) of subsection 1 of this section, for redevelopment
plans and projects adopted or redevelopment projects approved by
ordinance after July 12, 1990, and prior to August 31, 1991, fifty
percent of the total additional revenue from taxes, penalties and
interest imposed by the municipality, or other taxing districts, which
are generated by economic activities within the area of the
redevelopment project over the amount of such taxes generated by
economic activities within the area of the redevelopment project in
the calendar year prior to the adoption of the redevelopment project
by ordinance, while tax increment financing remains in effect, but
excluding taxes imposed on sales or charges for sleeping rooms paid
by transient guests of hotels and motels, taxes levied pursuant to
section 70.500, RSMo, licenses, fees or special assessments other
than payments in lieu of taxes and any penalty and interest thereon,
or, effective January 1, 1998, taxes levied pursuant to section 94.660,
RSMo, for the purpose of public transportation, shall be allocated to,
and paid by the local political subdivision collecting officer to the
treasurer or other designated financial officer of the municipality,
who shall deposit such funds in a separate segregated account within
the special allocation fund. Any provision of an agreement, contract
or covenant entered into prior to July 12, 1990, between a
municipality and any other political subdivision which provides for
an appropriation of other municipal revenues to the special allocation
fund shall be and remain enforceable.
3. In addition to the payments in lieu of taxes described in
subdivision (2) of subsection 1 of this section, for redevelopment
plans and projects adopted or redevelopment projects approved by
ordinance after August 31, 1991, fifty percent of the total additional
revenue from taxes, penalties and interest which are imposed by the
municipality or other taxing districts, and which are generated by
economic activities within the area of the redevelopment project over
the amount of such taxes generated by economic activities within the
area of the redevelopment project in the calendar year prior to the
adoption of the redevelopment project by ordinance, while tax
increment financing remains in effect, but excluding personal
property taxes, taxes imposed on sales or charges for sleeping rooms
paid by transient guests of hotels and motels, taxes levied pursuant to
section 70.500, RSMo, or effective January 1, 1998, taxes levied for
the purpose of public transportation pursuant to section 94.660,
RSMo, licenses, fees or special assessments other than payments in
lieu of taxes and penalties and interest thereon, shall be allocated to,
and paid by the local political subdivision collecting officer to the
treasurer or other designated financial officer of the municipality,
who shall deposit such funds in a separate segregated account within
the special allocation fund.
4. Beginning January 1, 1998, for redevelopment plans and
projects adopted or redevelopment projects approved by ordinance
and which have complied with subsections 4 to 12 of this section, in
addition to the payments in lieu of taxes and economic activity taxes
described in subsections 1, 2 and 3 of this section, up to fifty percent
of the new state revenues, as defined in subsection 8 of this section,
estimated for the businesses within the project area and identified by
the municipality in the application required by subsection 10 of this
section, over and above the amount of such taxes reported by
businesses within the project area as identified by the municipality in
their application prior to the approval of the redevelopment project by
ordinance, while tax increment financing remains in effect, may be
available for appropriation by the general assembly as provided in
subsection 10 of this section to the department of economic
development supplemental tax increment financing fund, from the
general revenue fund, for distribution to the treasurer or other
designated financial officer of the municipality with approved plans
or projects.
5. The treasurer or other designated financial officer of the
municipality with approved plans or projects shall deposit such funds
in a separate segregated account within the special allocation fund
established pursuant to section 99.805.
6. No transfer from the general revenue fund to the Missouri
supplemental tax increment financing fund shall be made unless an
appropriation is made from the general revenue fund for that purpose.
No municipality shall commit any state revenues prior to an
appropriation being made for that project. For all redevelopment
plans or projects adopted or approved after December 23, 1997,
appropriations from the new state revenues shall not be distributed
from the Missouri supplemental tax increment financing fund into the
special allocation fund unless the municipality's redevelopment plan
ensures that one hundred percent of payments in lieu of taxes and
fifty percent of economic activity taxes generated by the project shall
be used for eligible redevelopment project costs while tax increment
financing remains in effect. This account shall be separate from the
account into which payments in lieu of taxes are deposited, and
separate from the account into which economic activity taxes are
deposited.
7. In order for the redevelopment plan or project to be eligible
to receive the revenue described in subsection 4 of this section, the
municipality shall comply with the requirements of subsection 10 of
this section prior to the time the project or plan is adopted or
approved by ordinance. The director of the department of economic
development and the commissioner of the office of administration
may waive the requirement that the municipality's application be
submitted prior to the redevelopment plan's or project's adoption or
the redevelopment plan's or project's approval by ordinance.
8. For purposes of this section, "new state revenues" means:
(1) The incremental increase in the general revenue portion
of state sales tax revenues received pursuant to section 144.020,
RSMo, excluding sales taxes that are constitutionally dedicated, taxes
deposited to the school district trust fund in accordance with section
144.701, RSMo, sales and use taxes on motor vehicles, trailers, boats
and outboard motors and future sales taxes earmarked by law. The
incremental increase in the general revenue portion of state sales tax
revenues for an existing or relocated facility shall be the amount that
current state sales tax revenue exceeds the state sales tax revenue in
the base year as stated in the redevelopment plan as provided in
subsection 10 of this section; or
(2) The state income tax withheld on behalf of new
employees by the employer pursuant to section 143.221, RSMo, at the
business located within the project as identified by the municipality.
The state income tax withholding allowed by this section shall be the
municipality's estimate of the amount of state income tax withheld by
the employer within the redevelopment area for new employees who
fill new jobs directly created by the tax increment financing project.
9. Subsection 4 of this section shall apply only to blighted
areas located in enterprise zones, pursuant to sections 135.200 to
135.256, RSMo, blighted areas located in federal empowerment
zones, or to blighted areas located in central business districts or
urban core areas of cities which districts or urban core areas at the
time of approval of the project by ordinance, provided that the
enterprise zones, federal empowerment zones or blighted areas
contained one or more buildings at least fifty years old; and
(1) Suffered from generally declining population or property
taxes over the twenty-year period immediately preceding the area's
designation as a project area by ordinance; or
(2) Was a historic hotel located in a county of the first
classification without a charter form of government with a population
according to the most recent federal decennial census in excess of one
hundred fifty thousand and containing a portion of a city with a
population according to the most recent federal decennial census in
excess of three hundred fifty thousand.
10. The initial appropriation of up to fifty percent of the new
state revenues authorized pursuant to subsections 4 and 5 of this
section shall not be made to or distributed by the department of
economic development to a municipality until all of the following
conditions have been satisfied:
(1) The director of the department of economic development
or his or her designee and the commissioner of the office of
administration or his or her designee have approved a tax increment
financing application made by the municipality for the appropriation
of the new state revenues. The municipality shall include in the
application the following items in addition to the items in section
99.810:
(a) The tax increment financing district or redevelopment
area, including the businesses identified within the redevelopment
area;
(b) The base year of state sales tax revenues or the base year
of state income tax withheld on behalf of existing employees,
reported by existing businesses within the project area prior to
approval of the redevelopment project;
(c) The estimate of the incremental increase in the general
revenue portion of state sales tax revenue or the estimate for the state
income tax withheld by the employer on behalf of new employees
expected to fill new jobs created within the redevelopment area after
redevelopment;
(d) The official statement of any bond issue pursuant to this
subsection after December 23, 1997;
(e) An affidavit that is signed by the developer or developers
attesting that the provisions of subdivision (1) of section 99.810 have
been met and specifying that the redevelopment area would not be
reasonably anticipated to be developed without the appropriation of
the new state revenues;
(f) The cost-benefit analysis required by section 99.810
includes a study of the fiscal impact on the state of Missouri; and
(g) The statement of election between the use of the
incremental increase of the general revenue portion of the state sales
tax revenues or the state income tax withheld by employers on behalf
of new employees who fill new jobs created in the redevelopment
area;
(2) The methodologies used in the application for
determining the base year and determining the estimate of the
incremental increase in the general revenue portion of the state sales
tax revenues or the state income tax withheld by employers on behalf
of new employees who fill new jobs created in the redevelopment
area shall be approved by the director of the department of economic
development or his or her designee and the commissioner of the
office of administration or his or her designee. Upon approval of the
application, the director of the department of economic development
or his or her designee and the commissioner of the office of
administration or his or her designee shall issue a certificate of
approval. The department of economic development may request the
appropriation following application approval;
(3) The appropriation shall be either a portion of the estimate
of the incremental increase in the general revenue portion of state
sales tax revenues in the redevelopment area or a portion of the
estimate of the state income tax withheld by the employer on behalf
of new employees who fill new jobs created in the redevelopment
area as indicated in the municipality's application, approved by the
director of the department of economic development or his or her
designee and the commissioner of the office of administration or his
or her designee. At no time shall the aggregate annual appropriation
of the new state revenues for redevelopment areas exceed fifteen
million dollars;
(4) Redevelopment plans and projects receiving new state
revenues shall have a duration of up to fifteen years, unless prior
approval for a longer term is given by the director of the department
of economic development or his or her designee and the
commissioner of the office of administration or his or her designee;
except that, in no case shall the duration exceed twenty-three years.
11. In addition to the areas authorized in subsection 9 of this
section, the funding authorized pursuant to subsection 4 of this
section shall also be available in a federally approved levee district,
where construction of a levee begins after December 23, 1997, and
which is contained within a county of the first classification without
a charter form of government with a population between fifty
thousand and one hundred thousand inhabitants which contains all or
part of a city with a population in excess of four hundred thousand or
more inhabitants.
12. There is hereby established within the state treasury a
special fund to be known as the "Missouri Supplemental Tax
Increment Financing Fund", to be administered by the department of
economic development. The department shall annually distribute
from the Missouri supplemental tax increment financing fund the
amount of the new state revenues as appropriated as provided in the
provisions of subsections 4 and 5 of this section if and only if the
conditions of subsection 10 of this section are met. The fund shall
also consist of any gifts, contributions, grants or bequests received
from federal, private or other sources. Moneys in the Missouri
supplemental tax increment financing fund shall be disbursed per
project pursuant to state appropriations.
13. All personnel and other costs incurred by the department
of economic development for the administration and operation of
subsections 4 to 12 of this section shall be paid from the state general
revenue fund. On an annual basis, the general revenue fund shall be
reimbursed for the full amount of such costs by the developer or
developers of the project or projects for which municipalities have
made tax increment financing applications for the appropriation of
new state revenues, as provided for in subdivision (1) of subsection
10 of this section. The amount of costs charged to each developer
shall be based upon the percentage arrived at by dividing the
monetary amount of the application made by each municipality for a
particular project by the total monetary amount of all applications
received by the department of economic development.
14. For redevelopment plans or projects approved by
ordinance that result in net new jobs from the relocation of a national
headquarters from another state to the area of the redevelopment
project, the economic activity taxes and new state tax revenues shall
not be based on a calculation of the incremental increase in taxes as
compared to the base year or prior calendar year for such
redevelopment project, rather the incremental increase shall be the
amount of total taxes generated from the net new jobs brought in by
the national headquarters from another state. In no event shall this
subsection be construed to allow a redevelopment project to receive
an appropriation in excess of up to fifty percent of the new state
revenues.]