HCS/SS/SCS/SB 165 - This act provides a wide range of economic development incentive programs.
The linked deposit program is expanded to include eligible rural single- family housing developers and builders.
Current limits the authorization to impose a county economic development sales tax to certain counties. The act allows any county, other than St. Louis County, Jackson County, and the City of St. Louis, to impose such a tax upon approval by the voters.
The sales tax may not be imposed for a period longer than five years unless resubmitted to the voters.
The act changes the appointment procedures for the Bi-State Metropolitan Development District and specifies that corporations formed to contract for the planning and development of the Kansas and Missouri Metropolitan Culture District must meet certain open meeting and open records requirements.
This act makes the following changes in the Tax Increment Financing (TIF) law:
1. The act defines "redevelopment area," "special allocation fund," "gambling establishment", and "economic activity taxes". TIF plans and projects are prohibited from including the development or redevelopment of gambling establishments. In addition, personal property taxes and certain sales and use taxes are excluded from being included as economic activity taxes for TIF projects.
2. Municipalities must be established for two years or longer before TIF projects may be approved on or after August 28, 1997.
3. The act requires a cost- benefit analysis as part of the redevelopment plan which enumerates the economic impact on taxing jurisdictions if the project is not built and if it is built using TIF. The analysis must also include a fiscal impact study on every affected political subdivision and information indicating the financial history and status of the developer.
4. Municipalities or TIF commissions are required to establish procedures for obtaining competitive bids and proposals for implementation of the redevelopment projects. For minor changes to the redevelopment plan, project, or area, additional public hearings are not required.
5. The substitute allows, beginning January 1, 1998, certain blighted TIF areas to be eligible for a rebate of 50% of state sales taxes, except those which are constitutionally dedicated, School District Trust Fund taxes, and sales and use taxes on motor vehicles, trailers, boats and outboard motors. Municipalities must apply to the Department of Economic Development for the rebate of state sales taxes. A new fund, the Missouri Sales Tax Increment Financing Fund, is created in the Department of Revenue, for the rebate of state sales taxes to municipalities.
The act revises certain tax credits available to taxpayers operating new business facilities located within enterprise zones. Existing law prohibits certain new business facilities from qualifying for tax credits after the initial ten-year period, even if the business is expanded. This act would allow taxpayers eligible for enterprise zone tax credits to qualify for new business facility tax credits if otherwise eligible. The act authorizes the department of economic development to create enterprise zones in the cities of St. Louis and Clinton.
The act also revises existing law concerning tax credits for contributions to school and youth programs under the Youth Opportunities and Violence Prevention Act. Current law permits only individuals and certain classes of corporations to take the tax credits. The act permits individual proprietorships, partnerships, and S Corporations to take the credits and expands the taxes against which the credits may be taken to include corporation franchise tax, financial institutions tax, and bridge, express, and public utility tax.
The act provides for a Missouri low-income housing tax credit, and it extends the Community College Job Training tax credit program for ten years. A tax credit is authorized for one-half of the purchase price of environmental control equipment used in the production of charcoal in Missouri.
The act changes the definition of "community development corporation" in the Missouri small business investment tax credit program and caps the total amount of tax credits available for qualified investments in Missouri small businesses at five million dollars.
The Missouri certified capital company law is amended to eliminate for 1998 any amount of aggregate credits for certified capital and caps at ten million dollars the maximum amount of certified capital in one or more certified capital companies in any year for one investor or its affiliate.
Current law requires that 50% of the revenues estimated by the commissioner of administration to be generated from the state income tax on nonresident athletes and entertainers be earmarked for the Missouri Arts Council Trust Fund. This act increases the percentage to 60% and extends the earmarking through the year 2007. The remaining 40% of estimated state income tax revenue generated from nonresident athletes and entertainers is earmarked in equal amounts to the Missouri Humanities Council Trust Fund, the Missouri State Library Networking Fund, the Missouri Public Television Broadcasting Corporation Special Fund (including certain qualified public radio stations), and the Missouri Historic Preservation Revolving Fund.
The act provides a method for determining qualifying sales, for purposes of state corporate income tax, of an investment funds service corporation. Another provision of the act allows such a corporation to make an annual election to compute the portion of income derived from sources within this state under either the single factor formula or the three-part formula of the Multistate Tax Compact.
Current law specifies the order in which various tax credits may be taken against state income tax. The act repeals that requirement.
The act allows a Transportation Development District (TDD) to be formed by property owners in any area in which there are no residents, as opposed to using a petition by residents. New procedures are created for applications for ballots in all TDDs. Funding methods for TDDs are revised.
The act allows an income tax credit for costs incurred in the rehabilitation of a historic building in a historic district. The credit is allowed in an amount equal to twenty-five percent of total rehabilitation costs if those costs exceed fifty percent of the total basis in the property and the rehabilitation meets the standards of the state historic preservation officer. The tax credit provisions are effective January 1, 1998, and expire on December 31, 2002.
The state minimum wage law is amended to prohibit any political subdivision which has participated in or derived benefits from tax increment financing to require a minimum wage higher than the state minimum wage.
The State Highway and Transportation Commission is authorized to provide financial assistance to owners of any privately owned airport designated as a reliever by the Federal Aviation Administration.
The position of chair of the Board for Architects, Professional Engineers and Land Surveyors is allowed to rotate among members of the three professions.
The act permits the formation of housing cooperatives.
The act also excludes a joint municipal utility commission from being considered a water corporation, and adds provisions relating to sewer districts.
The Department of Economic Development is authorized to contract with the Missouri technology corporation, innovation centers, small business development centers, centers for advanced technology, and other entities for the provision of technology application, technology commercialization, and technology development services.
The tax credit for qualified research expenses is expanded to be allowed against financial institutions tax.
The "Community Improvement District Act," authorizes creation of a special benefit district to allow private parties to assess and tax themselves for community improvements and services. A petition to create a community improvements district (CID) must be approved by the governing body of a city and must specify the size, area, and duration of the district, the maximum rate of taxes which may be imposed, and the method and maximum rate of assessment.
Program management is under the direction of a District Board, which, depending upon the petition, may be appointed by the chief elected officer of the city, with the consent of its governing body, or elected by qualified voters of the district. Funds from assessments or taxes may be used for public capital improvements, certain private capital improvements, and special services. The petition may also specify maximum borrowing authority, types of services supported, eligible use of funds, and other limitations. The CID provisions terminate on December 31, 2002.
The act provides an income tax credit for contributions for infrastructure improvements. The total amount of tax credits is limited to two million dollars in any fiscal year.
The act establishes the International Economic Development Exchange Program for college students and the Task Force on Trade and Investment. The Task Force provisions expire on December 31, 2001.
An income tax credit is allowed any manufacturer or any material recovery processing plant for the amount expended for electrical energy used in the production of cellular glass products or in any product if the raw materials used contain at least twenty percent recovered materials.
The act specifies that an S Corporation that is also a banking institution shall pay an annual modified franchise tax.
The act also creates both the Kansas City Regional Sports Complex Authority and the St. Louis Regional Sports Complex Authority, each one composed of seven commissioners.
The Public Service Commission is authorized to approve energy assistance programs and rates for low-income residential customers of any gas or electric utility with a different rate structure from other customers.
The Department of Economic Development is authorized to assist community development corporations in forming a Missouri community development corporation association and is required to establish a public-private partnership to be known as the Missouri Community Development Corporation Initiative.
RUSS HEMBREE