In August of 2018 new legislation took effect in Missouri allowing special taxing districts greater control to recoup greater amounts from tax abated projects within district boundaries.  The changes enacted by SB 870 apply to RSMO chapters 99, 100 and 353 projects, subject to certain conditions. Despite the legislation being several years old I continue to speak with Districts that are not aware of the legislation, or don’t know how to protect themselves. 

In order to take advantage of the greater degree of control allowed for these projects fire districts must annually review and set a “reimbursement rate” (expressed as a percentage of the expected revenue from the project should it not be tax abated) for the upcoming year. Timing is important–This must be done prior to the determination of assessed valuation each year. It is also important to note there is no retroactivity provision (no mulligans!) so an approved reimbursement rate cannot be applied to previously approved projects within a District. The get-out-of-jail-free card for previously approved projects is amendments—any Chapter 99, 100, or 353 project amended after the passage of a reimbursement rate resolution would then be subject to the adopted reimbursement rate.  Once the reimbursement rate is set all jurisdictions with the power to approve a tax abated project within the District must be notified. …
Continue Reading Reimbursement rate resolutions and Missouri Fire Districts-protect yourself from the TIF