Budget & Taxes (Revenue · Economic Development)

HB 3395 extends Missouri's Downtown Economic Stimulus Act (MODESA) to support existing and new downtown redevelopment projects. It allows developers to expand approved projects beyond original boundaries (including noncontiguous areas outside central business districts), extends project obligation terms to 35 years, and increases tax benefits: up to 85% of new income tax revenue from jobs in the project area, plus 85% of new sales tax revenue. This directly affects developers, municipalities with "expansion authorities," and state tax revenue streams by modifying how economic development incentives are applied. The bill removes requirements like proving a project "could not be financed without incentives" and allows reimbursement for costs incurred before approval.

SB 1694 extends Missouri's Downtown Economic Stimulus Act (MODESA) to support existing downtown redevelopment projects approved before 2013. It allows developers to modify project areas (including noncontiguous zones outside central business districts), extend project timelines to 35 years, and use tax increments (up to 85% of state income tax and sales tax revenue) to fund development costs. The bill directly affects developers of approved projects, municipalities with designated development areas, and the state through new tax increment financing mechanisms. Key changes include removing requirements for new applications, eliminating displacement percentage rules, and enabling expanded project areas without new approval.

SB 1688 extends Missouri's Downtown Economic Stimulus Act (MODESA) to allow existing approved development projects (like those in Kansas City and St. Louis) to expand their incentives. It authorizes up to 85% of new state income and sales tax revenue generated in designated development areas to fund project costs, and extends project timelines to 35 years for tax obligations and payments in lieu of taxes. The bill removes previous requirements like displacement percentage limits and proof that projects couldn't be financed without state incentives. This directly affects developers and municipalities with approved MODESA projects that were previously unable to secure new approvals after 2013.

HB 3329 restructures how Missouri administers four economic development funds: the Industrial Development and Reserve Fund, Industrial Development Guarantee Fund, Export Finance Fund, and Jobs Now Fund. It specifies eligible funding sources (like state appropriations, bond proceeds, grants, and repayments), requires funds to be kept separate from state treasury money, and mandates that $12 million annually be allocated to the Jobs Now Fund from increased state revenue. The bill directly affects businesses applying for loans or grants through these funds and economic development agencies managing them. Key provisions include rules for fund investments, separate account creation, and the board’s authority to issue revenue bonds and manage disbursements under sections 100.250-100.297.