The Department of Economic Development is required to designate an enterprise zone in Independence.

The act authorizes Missouri generation zones. One or more local governmental units may apply to the Department of Economic Development for zone status, which cannot last more than 15 years, be larger than 3,000 acres, nor contain more than four distinct geographic areas. No one person can own more than fifty percent of the real property in each area, which has to meet certain income and unemployment levels. No generation zones can be designated before January 1, 1999 or after December 31, 1999.

Businesses within the generation zones must be exempted from non-constitutionally mandated local taxes; during the duration of the zone, all taxable income is exempted, real property taxes on subsequent improvements are abated, and all retail purchases made at any commercial establishment within the zone are exempted from state and local sales and use tax. Businesses within the zones that pay personal property taxes shall be reimbursed for those payments through appropriations.

The Department of Economic Development is authorized to issue infrastructure development, improvement or removal grants to qualified local government units in which a generation zone is located.

A generation zone association shall be created in each zone, consisting of seven members each serving a three-year term; two of the members shall be selected by the Governor and five by the chief executive officer of the qualified local government unit. Each business located within a zone which receives any tax exemptions, abatements or reimbursements authorized under this act shall pay ten percent of the value of those incentives to the generation zone association, which has the authority to expend those funds for purposes of crime prevention, educational improvements, health services and other community revitalization activities within the zone.

The Department of Economic Development is required to report annually to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives on the economic effects of this act in each generation zone.

RUSS HEMBREE