January 16, 2008 - Representative David Pearce (R-121, Warrensburg) today filed HB 1660 - MEDC priority legislation that will codify the ability of taxing districts to enter into voluntary developer agreements for economic development projects.Formerly dubbed the "Missouri Economic Development Code", the bill was the subject of a mandated review by the Joint Committee on Tax Policy which had earlier given its approval for further exploration of the concept. Actually, the bill allows local taxing districts to continue to enter into voluntary agreements with developers to dedicate a portion of new tax proceeds from new developments to help finance the infrastructure necessary to support those developments. The bill only allows the proceeds to be used for publicly owned infrastructure improvements, the amount of tax money dedicated for use is decided upon by each local taxing entity, no taxing entity can be forced to participate, and the bill does not supercede other TIF reform that was recently passed by the General Assembly.
The bill was originally filed two years ago to ensure TIF reform did not accidentally prevent local governments from voluntarily entering into such agreements with developers. The language was stripped from a bill last session and replaced with language requiring a study of the proposal by the Joint Committee on Tax Policy.
The Voluntary Developer Agreement Law is the top legislative priority of the MEDC for the 2008 Legislative Session. If you have any questions regarding the bill, please send them to ray@raymccarty.com.
