Economic Development Study

Economic Development Study:

taxing entities in the St. Louis region

projects utilizing Tax Increment Financing (TIF)

public tax dollars have been diverted to developers using TIF

%

average municipality’s operating budget funded by sales tax revenue

Possible Scenarios for Moving Forward



Require additional approval for the implementation of a TIF

Of the 49 states with TIF legislation, 6 require approval solely by a municipality for the creation of a TIF. Of those 6, only Missouri and Colorado allow for revenues beyond those of property tax to be eligible TIF revenues. Such an atmosphere creates an environment that is ripe for intraregional competition, especially when coupled with a high level of fragmentation.



Eliminate the availability of sales tax revenues for TIFs

Missouri is one of only 15 states that includes sales tax as an eligible tax revenue for tax increment financing. Eliminating this option would reduce the pursuit of the sales tax and bring Missouri in line with the majority of other states.



Workforce Goals

it is imperative to understand what goals and requirements are in place to promote diversity among the workforces that are employed or contracted with using taxpayer dollars.