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The Joint Committee on Tax Policy heard testimony from Representative David Pearce and MEDC Legislative Consultant Ray McCarty on Thursday regarding the Missouri Economic Development Code.
The MEDCode is a legislative priority of the MEDC for the upcoming session. The program would allow economic developers to continue arranging voluntary agreements between local taxing districts and site developers to use a portion of new tax revenues derived from new developments for public infrastructure necessary to support such development projects.
Rep. Pearce presented the concept to the committee and explained that he has carried the bill for the last two years and, although it has met with no resistance from any group and there seems to be little controversy about it, the bill has not passed due to confusion with Tax Increment Financing (TIF) programs. TIF programs have been closely scrutinized in recent years and TIF reform could have ended all similar arrangements, including those that are completely voluntary.
McCarty echoed Rep. Pearce's comments and explained the difference between involuntary contributions under TIF plans and voluntary contributions under the MEDCode. Click here for Missourinet coverage of the hearing, including sound clips.The Joint Committee on Tax Policy must report its findings on the feasibility of the MEDCode by December 31, 2007.
September 4 - Governor Matt Blunt today signed House Bill 1, sponsored by Representative Ron Richard and Senator John Griesheimer, as MEDC Legislative Consultant Ray McCarty (center) watches. The bill was one of the products of a special session called by Governor Blunt to address job creation and the repair of Missouri's bridges.
The bill contains many economic development provisions, including an increase in the Missouri Quality Jobs annual tax credit limit (from $12 million to $40 million) and a New Markets Tax Credit, both of which are effective today.
The remainder of the bill, including an increase in the Enhanced Enterprise Zone tax credit cap from $7 million to $14 million, will be effective December 3, 2007. A new Land Assemblage Tax Credit is also authorized in the bill, as well as a tax credit for cattle farm operations, ticket scalping provisions, and several other items. The bill also extends the New Jobs Training Tax Credit program expiration by 10 years.
The MEDC worked hard with the staff of the Missouri Department of Economic Development, the Governor's office, Representative Richard and Senator Griesheimer to pass this bill and appreciates Governor Blunt's continuing commitment to the creation of good paying jobs with benefits and for enhancing our economic developers' ability to attract and retain companies that provide such jobs. Since its birth in 2005, the Quality Jobs program has produced more than 12,500 jobs with average annual salaries of $46,856, according to a report by the Taxpayers Research Institute of Missouri (visit www.motaxpayers.com and click on "REPORTS" for a copy of the report). Total annual wages of jobs created with the program are anticipated to exceed $630 million by 2012, according to the report.
