NEIGHBORHOOD IMPROVEMENT DISTRICTS

Currently, the Boone County Collector is authorized to collect a fee when collecting special assessments for neighborhood improvement districts. This act allows all county collectors to collect such a fee. (Section 67.463)

This act also expands the existing law that allows liens against property to be foreclosed for failure to pay NID special assessments, so that certain first class counties, charter 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)

These provisions are similar to SB 138 (2013), HB 104 (2013), and HB 568 (2013). These provisions are similar to provisions contained in SS/SB 83 (2013), CCS/SCS/SB 248 (2013), HCS/HB 74 (2013), HCS/HB 161 (2013), HCS/HB 175 (2013), SCS/HCS/HB 1035 (2013), SS/SCS/HB 1170 (2012), and SS/SCS/HCS/HB 1865 (2012).

STAR BONDS FINANCING ACT

Sections 67.2070 to 67.2073

This act creates the STAR Bonds Financing Act. The governing bodies of cities and counties are authorized to issue sales tax and revenue (STAR) bonds to pay for certain projects. STAR bond projects must be approved by the Department of Economic Development. STAR bond financing may not exceed 50% of the project costs. Businesses proposing to relocate from one area of the state to another will be indelible for STAR bond financing. STAR bonds must mature within 20 years.

STAR bond projects must take place inside a STAR bond project district. The act sets out a procedure for cities and counties establishing STAR Bond districts. Applications for STAR bond financing cannot be approved more than one year after a STAR bond project district is established. Cities may establish a district outside its boundaries upon written consent of the county.

Cities or counties undertaking a project within a district must prepare a STAR bond project plan and a feasibility study. If the planing commission of a county or city determines that the project plan is inconsistent with the comprehensive plan of the county or city, a public hearing must be held and the governing board of the county or city must approve by a two-thirds vote the project plan. Projects cannot be initiated unless the a relocation assistance plan has been approved by the city or county.

Projects must give priority to residents of this state for construction employment. Work on a project must commence within 2 years of adoption of the project plan. STAR bond projects cannot include casinos.

STAR bonds may be paid for from: revenues of the city or county derived from the project; private or public contributions; tax increment revenue from local sales and use taxes in the project area of the district; tax increment revenue from state sales taxes in the project area of the district; from a transient guest tax; franchise fees from utilities or businesses using the public right-of-way in the project area; or local sales or use taxes.

Income from STAR bonds will be exempt from all state taxes. If a city or county defaults on a STAR bond, no public funds may be used to pay the holders of the obligation. Private land may not be acquired by eminent domain if such property will be transferred to a private entity prior to expiration of the project. Projects using state sales tax financing must be audited at the cost of the city or county.

This act shall expire on June 30, 2018.

The STAR Bond Financing Act is similar to HB 1592 (2012) and a provision contained in HCS/HB 161 (2013).

MIKE HAMMANN