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.
