Fiscal Note - SB 0095 - Cities May Use Tax Increment Financing For Affordable Housing
L.R. NO. 0498-01
BILL NO. SB 95
SUBJECT: Housing, Taxation, Cities
TYPE: Original
DATE: December 23, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Missouri Housing Development Commission, State Tax
Commission, Department of Revenue and the Department of Economic Development
indicate that there would be no fiscal impact to their agencies.
City of St. Louis and LeMay Fire Protection District officials also indicate
that there would be no direct fiscal impact to their political subdivisions.
Officials of the State Tax Commission indicate that local governments
participating in the tax increment financed development project may receive
less taxes than would otherwise be generated by the redevelopment area for
the duration of the project. However, any potential fiscal impact would be
indeterminable. For purposes of this fiscal note, Oversight assumes that
there would be a redistribution of local TIF revenues from the TIF Fund to
the Affordable Housing Fund. However, the overall impact to local
governments would result in a net impact of $0.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
There would be a redistribution of monies from
the TIF Fund to the Affordable Housing Fund 0 0 0
FISCAL IMPACT - Small Business
This proposal would not directly affect small businesses.
DESCRIPTION
This legislation would require that local governments which authorize tax
increment financing redevelopment projects after December 31, 1996 set aside
20% of the tax increment in an Affordable Housing Fund to be used to provide
low-interest loans and grants for affordable housing.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Missouri Housing Development Commission
State Tax Commission
City of St. Louis
LeMay Fire Protection District
Department of Revenue
Department of Economic Development
Not Responding: Kansas City Manager; Melhville Fire Protection District;
Chesterfield Fire Protection District
This Fiscal Note is not an official copy and should not be quoted or cited.