Tax Candi

The state of Missouri, named after "those who have dug out canoes", probably has one of the most unfortunate names in the Union.  Hasn't everyone, at one time or another, made the made "Missouri-Misery" pun?

Well, to overcome this business-development disadvantage, the state would like to give growing businesses the ...

State Supplemental Tax Increment Financing (State TIF)

Missouri municipalities have the (TIF), permiting the use of a portion of local property and sales taxes to assist funding the redevelopment of certain designated areas within the community. Areas eligible for TIF must contain property classified as a "Blighted", "Conservation" or an "Economic Development" area, or any combination thereof.

TIF may be used to pay certain costs incurred with a redevelopment project, such as:

• land acquisition;
• rehabilitation;
• building of necessary infrastructure; and
• relocation of occupants within TIF zone.

If the above TIF leaves a gap for a redevelopment project, a municipality may allow for a portion of the new state tax revenues created by the project to cover the financing gap for eligible redevelopment costs. 

To be eligible for State TIF, the underlying TIF must dedicate at least 50% of the amount of the new local sales tax (and earnings tax in St. Louis and Kansas City) revenue and 100% of the amount of the new real property tax revenue created by the project each year for which State TIF is sought.  Eligible projects must be in a blighted area, among other requirements.