NEIGHBORHOOD IMPROVEMENT DISTRICT SPECIAL ASSESSMENTS

(Sections 67.463 and 67.469)

Currently, the Boone County county collector is authorized to collect a fee when collecting special assessments for Neighborhood Improvement Districts. This act allows county collectors in any county to collect this fee.

This act also expands the existing law that allows liens against property to be foreclosed for failure to pay Neighborhood Improvement district special assessments, so that first class counties and the city of St. Louis may also foreclose on these liens by a land tax sale under the provisions of law that govern land tax sales in those counties. (Section 67.469)

This provision is identical to a provision of HCS/HB 1865 (2012).

DISTRIBUTION AND USE OF TAXES USED FOR ROAD AND BRIDGE PURPOSES

(Section 67.548)

Under current law, certain counties that have part of Kansas City in the county are allowed to use sales tax proceeds authorized by another statute for road and bridge purposes and reduce the county's property tax levy. However, if the county commission reduces the special road and bridge tax levy and that reduction reduces the amount of revenue received by cities and special road districts in that county, then the county commission must set aside to the credit of the cities and road districts an amount from the sales tax that is at least equal to what the cities and road districts would have received under the special road and bridge property tax levy. This act modifies this law by providing that if the special road and bridge levy is not set at a level of at least fourteen cents on each $100 assessed valuation, the county is required to allocate additional funds from any available county source to the cities, towns, villages, and special road districts within the county to at least equal the funding level produced by a levy of fourteen cents on each $100 assessed valuation. Additionally, any city that contains at least fifty percent of a special road district is entitled to receive the special road district's portion of any funds not paid through the special road and bridge levy.

This provision is similar to an amendment to SS/SCS/HCS/HB 1402 (2012).

SALES TAX AND REVENUE BOND

(Sections 67.2070, 67.2071, 67.2072, and 67.2073)

This act allows the governing body of a city or county to establish a Sales Tax and Revenue (STAR) Bond project with the approval of the Director of the Department of Economic Development. These types of projects must be found to either: 1)have at least fifty million dollars in capital investment and fifty million dollars in projected gross annual sales, or 2)if the area is not located in a metropolitan statistical area, then the Director must find that the project is an eligible area and would be of regional or statewide importance or is a major tourism area. The areas that are for eligible for this type of bond project are historic theaters, river walk canal facilities, athletic complexes, major commercial entertainment and tourism areas, and areas that the Director of Economic Development has found will have at least one hundred million dollars in capital improvements. These projects will be financed by issuing STAR bonds. STAR bonds are tax-exempt special obligation bonds that may be repaid over a twenty-year period. These bonds may be repaid by local and state sales and use taxes, transient guest taxes, and city or county franchise fees. The act sets forth the procedures that are required to take place before the city or county may approve the project and the issuance of the bonds. The city or county may use eminent domain in connection with the project plan.

These provisions expire on June 30, 2017.

EMILY KALMER