Bill Text: MO HB1483 | 2010 | Regular Session | Introduced
Bill Title: Establishes the Duty Free Zones Act which authorizes the creation of tax-free or reduced-tax zones
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-14 - Referred: Special Standing Committee on Urban Issues (H) [HB1483 Detail]
Download: Missouri-2010-HB1483-Introduced.html
SECOND REGULAR SESSION
95TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE HUGHES.
4064L.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 99, RSMo, by adding thereto eight new sections relating to duty free zones.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 99, RSMo, is amended by adding thereto eight new sections, to be known as sections 99.1150, 99.1153, 99.1156, 99.1159, 99.1162, 99.1165, 99.1168, and 99.1171, to read as follows:
99.1150. Sections 99.1150 to 99.1171 shall be known and may be cited as the "Duty Free Zones Act".
99.1153. As used in sections 99.1150 to 99.1171, unless the context clearly requires otherwise, the following terms shall mean:
(1) "Blighted area", an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use;
(2) "Department", the Missouri department of economic development;
(3) "Municipality", any city located within this state;
(4) "Qualified census tract", any tract, designated as having low to moderate income levels, as defined under 24 CFR 570.208(a)(l)(i);
(5) "Tax favored status", a reduction to or elimination of the rate of tax on transactions subject to taxes imposed under chapter 144;
(6) "Taxing districts", any political subdivision of this state having the power to levy taxes.
99.1156. The governing body of a municipality may, through the adoption of an ordinance in compliance with the provisions of sections 99.1150 to 99.1171, designate a portion of such municipality as a duty free zone and grant such district tax favored status for a term of years not to exceed twenty-three years. In adopting an ordinance designating a duty free zone, a municipality shall create a name for such zone which represents the zone's historical significance to the municipality. An ordinance designating a duty free zone shall contain:
(1) A statement that the proposed duty free zone is a blighted area located within a qualified census tract;
(2) The reduced tax rate or tax favored status granted to the zone;
(3) The term and conditions of tax favored status;
(4) The general boundaries of the proposed duty free zone by street location; and
(5) The name of the duty free zone.
99.1159. Prior to the adoption of an ordinance proposing the designation of a duty free zone, the governing body of the municipality shall fix a time and place for a public hearing and notify each taxing district located wholly or partially within the boundaries of the proposed duty free zone. At the public hearing any interested person or affected taxing district may file with the governing body of the municipality written objections to, or comments on, and may be heard orally in respect to, any issues embodied in the notice. The governing body of the municipality shall hear and consider all protests, objections, comments, and other evidence presented at the hearing. The hearing may be continued to another date without further notice other than a motion to be entered upon the minutes fixing the time and place of the subsequent hearing. Prior to the conclusion of the hearing, changes may be made to the boundaries of the proposed duty free zone, the tax rates to be imposed, or the term and conditions of tax favored status, provided that each affected taxing district is given written notice of such changes at least seven days prior to the conclusion of the hearing. After the adoption of an ordinance approving the designation of a duty free zone, no ordinance shall be adopted altering the exterior boundaries, modifying the tax rates, or the term and conditions of tax favored status without complying with the procedures provided in this section pertaining to the initial approval of a duty free zone.
99.1162. 1. Notice of the public hearing required by section 99.1159 shall be given by publication and mailing. Notice by publication shall be given by publication at least twice, the first publication to be not more than thirty days and the second publication to be not more than ten days prior to the hearing, in a newspaper of general circulation in the area of the proposed duty free zone. Notice by mailing shall be given by depositing such notice in the United States mail by certified mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract, or parcel of land lying within the duty free zone which is to be subjected to the tax favored status under section 99.1153. Such notice shall be mailed not less than ten days prior to the date set for the public hearing. In the event taxes for the last preceding year were not paid, the notice shall also be sent to the persons last listed on the tax rolls within the preceding three years as the owners of such property.
2. The notices issued under this section shall include the following:
(1) The time and place of the public hearing;
(2) The general boundaries of the proposed duty free zone by street location, where possible;
(3) A statement that all interested persons shall be given an opportunity to be heard at the public hearing;
(4) A description of the proposed duty free zone, the proposed tax rates or tax favored status, the term and conditions of such tax favored status, and a location and time where the proposal may be reviewed by any interested party; and
(5) Such other matters as the governing body of the municipality may deem appropriate.
3. Not less than forty-five days prior to the date set for the public hearing, the governing body of the municipality shall give notice by mail as provided in subsection 1 of this section to all taxing districts from which taxable property is included in the duty free zone, and in addition to the other requirements under subsection 2 of this section, the notice shall include an invitation to each taxing district to submit comments to the governing body of the municipality concerning the subject matter of the hearing prior to the date of the hearing.
4. A copy of any and all hearing notices required by section 99.1159 shall be submitted by the governing body of the municipality to the director of the department of revenue, the governing body of the county in which the municipality is located and the department. Such submission of the copy of the hearing notice shall comply with the prior notice requirements under subsection 3 of this section.
99.1165. 1. Upon adoption of an ordinance designating a duty free zone, a municipality shall forward a copy of such ordinance to the governing body of the county in which the municipality is located. No municipality may provide a duty free zone with tax favored status unless the governing body of the county in which the municipality is located adopts an ordinance or resolution authorizing tax favored status for such zone in an amount and term equal to that which is provided for in the municipal ordinance and such ordinance or resolution is approved by the Missouri development finance board.
2. Upon adoption of an ordinance or resolution by the governing body of the county in which the municipality is located under the provisions of subsection 1 of this section, a municipality shall submit an application to the department for review and submission of an analysis and recommendation to the Missouri development finance board for a determination as to approval of the designation of a duty free zone and grant of tax favored status. The department shall forward the application to the Missouri development finance board with the analysis and recommendation. An application submitted to the department shall contain the following:
(1) The general boundaries of the proposed duty free zone by street location;
(2) Identification of the existing businesses located within the proposed duty free zone;
(3) The previous year's aggregate amount of state sales tax revenues reported by existing businesses within the proposed duty free zone. Provisions of section 32.057, notwithstanding, municipalities shall provide this information to the department of revenue for verification. The department of revenue shall verify the information provided by the municipalities within forty-five days of receiving a request for such verification from a municipality;
(4) An affidavit that is signed by the governing body of the municipality attesting that the proposed duty free zone constitutes a blighted area and is located within a qualified census tract; and
(5) Any other information reasonably requested by the department and the Missouri development finance board.
3. The department shall make all reasonable efforts to process applications within sixty days of receipt of the application.
4. The Missouri development finance board shall make a determination regarding the application for a certificate authorizing tax favored status for a duty free zone. Upon approval of tax favored status for a duty free zone, a certificate of approval shall be issued by the department containing the reduced tax rate or tax favored status and the term.
5. Upon issuance of a certificate of approval, any business located within the duty free zone may receive tax favored status for a term of years not to exceed fifteen years. Any business receiving tax favored status shall report the amount of taxes deferred to the governing body of the municipality on an availability basis for the duration of the term of tax favored status.
6. No municipality shall have more than one duty free zone in existence within the jurisdiction of the municipality at any given time.
99.1168. Any tax dollars collected under sections 99.1150 to 99.1171 shall be directed to the "Blighted Area Restoration Fund". Such fund shall be managed by a board to be appointed by the mayor with the approval of the city council of the municipality within the duty free zone. Such board shall consist of a member of the house of representatives and a member of the senate, a member of the city council of such municipality, three business persons within such municipality, and a person from the community within such municipality. The members of the board first appointed by the mayor shall be appointed to serve for terms of one, two, and three years, the term of each member to be designated by the mayor. The successor of each member shall be appointed for a term of four years or until their successors have been appointed, but any person appointed to fill a vacancy shall be appointed to serve only for the unexpired term.
99.1171. Any moneys collected under sections 99.1150 to 99.1171 located within a duty free zone shall be used to restore any blighted area within such zone.
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