Section 99.918

There are multiple enactments of 99.918

Title VII CITIES, TOWNS AND VILLAGES

Chapter 99

Effective - 28 Aug 2026, 6 histories, see footnote   

  99.918.  Definitions. — As used in sections 99.915 to 99.980, unless the context clearly requires otherwise, the following terms shall mean:

  (1)  "Authority", the downtown economic stimulus authority for a municipality, created pursuant to section 99.921;

  (2)  "Baseline year", the calendar year prior to the adoption of an ordinance by the municipality approving a development project or an expanded development project, as applicable; provided, however, if economic activity taxes or state sales tax revenues, from businesses other than any out-of-state business or businesses locating in the development project area or expanded development project area, as applicable, decrease in the development project area or expanded development project area, as applicable, in the year following the year in which the ordinance approving a development project or an expanded development project, as applicable, is approved by a municipality, the baseline year may, at the option of the municipality approving the development project or an expanded development project, as applicable, be the year following the year of the adoption of the ordinance approving the development project or an expanded development project, as applicable;

  (3)  "Blighted area", the same meaning as defined pursuant to section 99.805;

  (4)  "Central business district", the area at or near the historic core that is locally known as the "downtown" of a municipality.  The historical land use emphasis of a central business district prior to redevelopment will have been a mixed use of business, commercial, financial, transportation, government, and multifamily residential uses.  The term central business district shall include the riverfront of a municipality that is near the municipality's downtown, and the riverfront may have an industrial historical land use;

  (5)  "Collecting officer", the officer of the municipality responsible for receiving and processing payments in lieu of taxes, economic activity taxes other than economic activity taxes which are local sales taxes, and other local taxes other than local sales taxes, and, for local sales taxes and state taxes, the director of revenue;

  (6)  "Conservation area", any improved area within the boundaries of a redevelopment area located within the territorial limits of a municipality in which fifty percent or more of the structures in the area have an age of thirty-five years or more, and such an area is not yet a blighted area but is detrimental to the public health, safety, morals, or welfare and may become a blighted area because of any one or more of the following factors: dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; and lack of community planning;

  (7)  "Department", the department of economic development;

  (8)  "Developer", the entity with which the municipality entered into a development agreement for the development of the development area as set forth in the municipality's application to the department for which a certificate of approval was issued under section 99.960 prior to January 1, 2013, and that has or is in the process of developing the development project, or the entity's affiliate, or the developer selected by the municipality for a development project pursuant to paragraph (a) of subdivision (2) of section 99.936;

  (9)  "Development area", an area designated by a municipality in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, which area shall have the following characteristics:

  (a)  It includes only those parcels of real property directly and substantially benefitted by the proposed development plan;

  (b)  It can be renovated through one or more development projects;

  (c)  It is located in the central business district;

  (d)  It has generally suffered from declining population or property taxes for the twenty-year period immediately preceding the area's designation as a development area or has structures in the area fifty percent or more of which have an age of thirty-five years or more;

  (e)  It is contiguous, provided, however that a development area may include up to three noncontiguous areas selected for development projects, provided that each noncontiguous area meets the requirements of paragraphs (a) to (g) herein;

  (f)  The development area shall not exceed ten percent of the entire area of the municipality.  A development area approved after August 28, 2026, shall not be within a one-half mile radius of the boundary of a development area included in an application to the department for which a certificate of approval was issued under section 99.960 prior to January 1, 2013, or of an expanded development area; provided, however, that in a municipality that is a city not within a county, the radius may be reduced but shall not be eliminated as part of the approval under section 99.948; and

  (g)  The development area shall not include any property that is located within the one hundred year flood plain, as designated by the Federal Emergency Management Agency flood delineation maps, unless such property is protected by a structure that is inspected and certified by the United States Army Corps of Engineers.  This subdivision shall not apply to property within the one hundred year flood plain if the buildings on the property have been or will be flood proofed in accordance with the Federal Emergency Management Agency's standards for flood proofing and the property is located in a home rule city with more than one hundred fifty-one thousand five hundred but fewer than one hundred fifty-one thousand six hundred inhabitants.  Only those buildings certified as being flood proofed in accordance with the Federal Emergency Management Agency's standards for flood proofing by the authority shall be eligible for the state sales tax increment and the state income tax increment.  Subject to the limitation set forth in this subdivision, the development area can be enlarged or modified as provided in section 99.951;

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The term development area shall also include an area designated as a development area as included in its application to the department for which a certificate of approval was issued under section 99.960 prior to January 1, 2013, as may be thereafter modified under section 99.948 in relation to an expanded development area;

  (10)  "Development plan", the comprehensive program of a municipality to reduce or eliminate those conditions which qualified a development area as a blighted area or a conservation area, and to thereby enhance the tax bases of the taxing districts which extend into the development area through the reimbursement, payment, or other financing of development project costs in accordance with sections 99.915 to 99.980 and through the exercise of the powers set forth in sections 99.915 to 99.980.  The development plan shall conform to the requirements of section 99.942;

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The term development plan shall also include the comprehensive program of the municipality as included in its application to the department for which a certificate of approval was issued under section 99.960 prior to January 1, 2013, as may be thereafter modified under section 99.948 in relation to an expanded development plan;

  (11)  "Development project", any development project within a development area which constitutes a major initiative in furtherance of the objectives of the development plan, and any such development project shall include a legal description of the area selected for such development project;

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The term development project shall also include a development project for which a certificate of approval was issued under section 99.960 prior to January 1, 2013, as may be thereafter modified under section 99.948 in relation to an expanded development project;

  (12)  "Development project area", the area located within a development area selected for a development project, or the development project area for which a certificate of approval was issued under section 99.960 prior to January 1, 2013, as may be thereafter modified under section 99.948 in relation to an expanded development project;

  (13)  "Development project costs" include such costs to the development plan or a development project, as applicable, which are expended on public property, buildings, or rights-of-ways for public purposes to provide infrastructure to support a development project.  Such costs shall only be allowed as an initial expense which, to be recoverable, must be included in the costs of a development plan or development project, except in circumstances of plan amendments approved by the department.  Such infrastructure costs include, but are not limited to, the following:

  (a)  Costs of studies, appraisals, surveys, plans, and specifications;

  (b)  Professional service costs, including, but not limited to, architectural, engineering, legal, marketing, financial, planning, or special services;

  (c)  Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;

  (d)  Costs of rehabilitation, reconstruction, repair, or remodeling of existing public buildings and fixtures;

  (e)  Costs of construction of public works or improvements;

  (f)  Financing costs, including, but not limited to, all necessary expenses related to the issuance of obligations issued to finance all or any portion of the infrastructure costs of one or more development projects, and which may include capitalized interest on any such obligations and reasonable reserves related to any such obligations;

  (g)  All or a portion of a taxing district's capital costs resulting from any development project necessarily incurred or to be incurred in furtherance of the objectives of the development plan, to the extent the municipality by written agreement accepts and approves such infrastructure costs;

  (h)  Payments to taxing districts on a pro rata basis to partially reimburse taxes diverted by approval of a development project;

  (i)  State government costs, including, but not limited to, the reasonable costs incurred by the department and the department of revenue in evaluating an application for and administering state supplemental downtown development financing for a development project; and

  (j)  Endowment of positions at an institution of higher education which has a designation as a Carnegie Research I University including any campus of such university system, subject to the provisions of section 99.958.  In addition, economic activity taxes and payment in lieu of taxes may be expended on or used to reimburse any reasonable or necessary costs incurred or estimated to be incurred in furtherance of a development plan or a development project;

  (14)  "Economic activity taxes", the total additional revenue from taxes which are imposed by the municipality and other taxing districts, and which are generated by economic activities within each development project area or expanded development project area, as applicable, which are not related to the relocation of any out-of-state business into the development project area or expanded development project area, as applicable, which exceed the amount of such taxes generated by economic activities within such development project area or expanded development project area, as applicable, in the baseline year plus, in development project areas or expanded development project areas, as applicable, where the baseline year is the year following the year in which the development project or expanded development project, as applicable, is approved by the municipality pursuant to subdivision (2) of this section, the total revenue from taxes which are imposed by the municipality and other taxing districts which is generated by economic activities within the development project area or expanded development project area, as applicable, resulting from the relocation of an out-of-state business or out-of-state businesses to the development project area or expanded development project area, as applicable, pursuant to section 99.919; but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees, or special assessments.  If a business or retail establishment relocates within one year from one facility to another facility within the same county and the municipality or authority finds that the business or retail establishment is a direct beneficiary of development financing, then for purposes of this definition, the economic activity taxes generated by the business or retail establishment shall equal the total additional revenues from taxes which are imposed by the municipality and other taxing districts which are generated by the economic activities within the development project area or expanded development project area, as applicable, which exceed the amount of taxes which are imposed by the municipality and other taxing districts which are generated by economic activities within the development project area or expanded development project area, as applicable, generated by the business or retail establishment in the baseline year;

  (15)  "Expanded development area", an area designated by a municipality in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, which area shall have the following characteristics:

  (a)  It includes only those parcels of real property directly and substantially benefited by the proposed expanded development plan;

  (b)  It can be renovated through one or more expanded development projects;

  (c)  It is located in the central business district;

  (d)  It furthers the development of the major initiative or has structures in the area fifty percent or more of which have an age of thirty-five years or more;

  (e)  Notwithstanding any other provision of law to the contrary, upon approval under section 99.948, an expanded development area may include areas designated as a development area included in an application to the department for which a certification of approval was issued under section 99.960 prior to January 1, 2013, provided that they are removed from the development area and were not developed prior to the removal from the development area.  The expanded development area, together with the development area, shall not exceed ten percent of the entire area of the municipality; and

  (f)  The expanded development area shall not include any property that is located within the one-hundred-year flood plain, as designated by the Federal Emergency Management Agency flood delineation maps, unless such property is protected by a structure that is inspected and certified by the U.S. Army Corps of Engineers and shall not be within a one-half mile radius of a development area included in an application to the department for which a certification of approval is issued under section 99.960 after August 28, 2026, but before the designation of the expanded development area by the municipality; provided, however, that in a municipality that is a city not within a county the radius may be reduced but shall not be eliminated as part of the approval under section 99.948;

  (16)  "Expanded development plan", the comprehensive program of a municipality to reduce or eliminate those conditions that qualify an expanded development area as a blighted area or a conservation area, and to thereby enhance the tax bases of the taxing districts which extend into the expanded development area through the reimbursement, payment, or other financing of expanded development project costs in accordance with sections 99.915 to 99.980 and through the exercise of the powers set forth in sections 99.915 to 99.980.  The expanded development plan shall conform to the requirements of section 99.942;

  (17)  "Expanded development project", any development project within an expanded development area and is in furtherance of the objectives of the expanded development plan, and any such expanded development project shall include a legal description of the area selected for such expanded development project;

  (18)  "Expanded development project area", the area located within an expanded development area selected for an expanded development project;

  (19)  "Expanded development project costs", costs to an expanded development plan or expanded development project as set forth in a certificate of approval from the department that are expended on or used to reimburse base building costs of an expanded development project including site preparation; foundation; structural; utility relocation and off-site utility; environmental mitigation and remediation; stormwater management; mechanical, engineering, and plumbing; landscaping and hardscaping; lighting; and temporary structural support or stabilization costs; and any costs allowable under the definition of development project costs in this section.  Economic activity taxes, payment in lieu of taxes, and municipal residential earnings tax increment may be expended on or used to reimburse any reasonable or necessary costs incurred or estimated to be incurred in furtherance of an expanded development plan or expanded development project.  Notwithstanding any provision of law to the contrary, expanded development project costs may include the payment of obligations issued to finance development project costs associated with the major initiative.  Expanded development project costs shall not include costs expended on the interior improvements of an expanded development project;

  (20)  "Gambling establishment", an excursion gambling boat as defined in section 313.800 and any related business facility including any real property improvements which are directly and solely related to such business facility, whose sole purpose is to provide goods or services to an excursion gambling boat and whose majority ownership interest is held by a person licensed to conduct gambling games on an excursion gambling boat or licensed to operate an excursion gambling boat as provided in sections 313.800 to 313.850;

  (21)  "Major initiative", a development project within a central business district that:

  (a)  Promotes tourism, cultural activities, arts, entertainment, education, research, arenas, multipurpose facilities, libraries, ports, mass transit, museums, or conventions, the estimated cost of which is in excess of the amount set forth below for the municipality, as applicable; or

  (b)  Promotes business location or expansion, the estimated cost of which is in excess of the amount set forth below for the municipality, and is estimated to create at least as many new jobs as set forth below within three years of such location or expansion:

Population of Municipality	Estimated Project Cost	New Jobs Created
300,000 or more	$10,000,000	at least 100
100,000 to 299,999	$5,000,000	at least 50
50,001 to 99,999	$1,000,000	at least 10
50,000 or less	$500,000	at least 5;

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The term major initiative shall also include a major initiative for which a certificate of approval was issued under section 99.960 prior to January 1, 2013;

  (22)  "Municipal residential earnings tax increment", those revenues from the municipal earnings tax for salaries or wages paid to natural persons residing in a primarily residential building, regardless of the inclusion of mixed uses within a portion of the building, in an expanded development project area that did not reside in the expanded development project area in the baseline year.  The municipality may calculate the municipal residential earnings tax increment in a manner consistent with the state's calculation of state residential income tax increment, except the maximum marginal tax rate in effect shall be pursuant to the earnings tax rate approved by voters under sections 92.111 to 92.200;

  (23)  "Municipality", any city, village, incorporated town, or any county of this state established on or prior to January 1, 2001, or a census-designated place in any county designated by the county for purposes of sections 99.915 to 99.1060 to which a certificate of approval was issued under section 99.960 prior to January 1, 2013;

  (24)  "New job", any job defined as a new job pursuant to subdivision (11) of section 100.710;

  (25)  "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by the municipality or authority, or other public entity authorized to issue such obligations pursuant to sections 99.915 to 99.980 to carry out a development project or expanded development project, as applicable, or to refund outstanding obligations;

  (26)  "Ordinance", an ordinance enacted by the governing body of any municipality or an order of the governing body of such a municipal entity whose governing body is not authorized to enact ordinances;

  (27)  "Other net new revenues", the amount of state sales tax increment or state income tax increment or the combination of the amount of each such increment as determined under section 99.960.  For expanded development project areas, other net new revenues also includes the amount of state residential income tax increment as determined under section 99.960.  For development project areas approved by the department on or after August 28, 2026, other net new revenues may include the amount of state residential income tax increment as determined under section 99.960;

  (28)  "Out-of-state business", a business entity or operation that has been located outside of the state of Missouri prior to the time it relocates to a development project area or expanded development project area, as applicable;

  (29)  "Payment in lieu of taxes", those revenues from real property in each development project area or expanded development project area, as applicable, which taxing districts would have received had the municipality not adopted a development plan or expanded development plan, as applicable, and the municipality not adopted development financing, and which would result from levies made after the time of the adoption of development financing during the time the current equalized value of real property in such development project area or expanded development project area, as applicable, exceeds the total equalized value of real property in such development project area or expanded development project area, as applicable, during the baseline year until development financing for such development project area or expanded development project area, as applicable, expires or is terminated pursuant to sections 99.915 to 99.980;

  (30)  "Retained job", an existing job in the state if the department determines that the existing job could be relocated to another state in the absence of the expanded development project authorized under sections 99.915 to 99.980;

  (31)  "Special allocation fund", the fund of the municipality or its authority required to be established pursuant to section 99.957 which special allocation fund shall contain at least four separate segregated accounts into which payments in lieu of taxes are deposited in one account, economic activity taxes are deposited in a second account, other net new revenues are deposited in a third account, and other revenues, if any, received by the authority or the municipality for the purpose of implementing a development plan or a development project or expanded development plan or an expanded development project, as applicable, are deposited in a fourth account;

  (32)  "State income tax increment", up to fifty percent of the estimate of the income tax due the state for salaries or wages paid to new employees in new jobs at a business located in the development project area and created by the development project or in an expanded development project area and created by the expanded development project, as applicable, and for an expanded development project, up to fifty percent of the estimate of the income tax due the state for salaries or wages paid to employees in retained jobs at a business located in the expanded development project area and created by the expanded development project.  In the case of an expanded development project wherein the department director has determined, through the cost-benefit analysis and other analysis as determined by the department, that the projected state benefit is substantial and that the project is unlikely to occur without a higher percentage of state contribution, the increment percentage for the expanded development project may, at the department's discretion, be increased up to seventy percent of the income tax due to the state for salaries or wages paid to new employees in new jobs and employees in retained jobs at a business located in the expanded development project area and created by the expanded development project.  The estimate shall be a percentage of the gross payroll which percentage shall be based upon an analysis by the department of revenue of the practical tax rate on gross payroll as a factor in overall taxable income.  The department may provide in a certificate of approval for an expanded development project under section 99.960 that it will calculate and disburse state income tax increment based upon the applicable marginal personal income tax rate in effect under section 143.011 at the time the certificate is issued even in the event the state personal income tax rate is subsequently reduced, or the tax is eliminated;

  (33)  "State residential income tax increment", up to seventy percent of the estimate of the income tax due to the state for salaries or wages paid to natural persons residing in a primarily residential building, regardless of the inclusion of mixed uses within a portion of the building, in a development project area approved on or after August 28, 2026, or in an expanded development project area, as applicable, that did not reside in the development project area or expanded development project area, as applicable, in the baseline year.  Annually, after the opening of the residential component of the development project or expanded development project, as applicable, the developer shall provide the department and the municipality with certified incomes of natural persons residing in leased or occupied residential units.  The increment shall be the product of the total certified incomes for all residential units leased to or occupied by natural persons times the applicable marginal personal income tax rate in effect under section 143.011.  The department may provide in a certificate of approval for an expanded development project under section 99.960 that the department shall calculate and disburse state residential income tax increment based upon the applicable marginal personal income tax rate in effect under section 143.011 at the time the certificate is issued in the event the state personal income tax rate is subsequently reduced, or the tax is eliminated.  The developer shall allow the department to audit records of certified incomes of natural persons residing in leased or occupied residential units;

  (34)  "State sales tax increment", up to fifty percent of the incremental increase in the state sales tax revenue in the development project area or expanded development project area, as applicable.  In the case of an expanded development project wherein the department director has determined, through the cost-benefit analysis and other analysis as determined by the department, that the projected state benefit is substantial and that the project is unlikely to occur without a higher percentage of state contribution, the increment percentage for the expanded development project may, at the department's discretion, be increased up to seventy percent of the incremental increase in the state sales tax revenue in the expanded development project area.  The incremental increase for an existing facility shall be the amount by which the state sales tax revenue generated at the facility exceeds the state sales tax revenue generated at the facility in the baseline year.  The incremental increase in development project areas or expanded development project areas, as applicable, where the baseline year is the year following the year in which the development project or expanded development project, as applicable, is approved by the municipality pursuant to subdivision (2) of this section shall be the state sales tax revenue generated by out-of-state businesses relocating into a development project area or expanded development project area, as applicable.  The incremental increase for a Missouri facility which relocates to a development project area or expanded development project area, as applicable, shall be the amount by which the state sales tax revenue of the facility exceeds the state sales tax revenue for the facility in the calendar year prior to relocation.  If the department elects to issue a certificate of approval for an expanded development project that applies the applicable marginal personal income tax rate for the state income tax increment and state residential income tax increment regardless of whether the rate may thereafter be reduced or the tax eliminated, the department may fix the state sales tax rate upon which the state sales tax increment is calculated at the rate in effect at the time the certificate of approval is issued, even if the state sales tax rate is increased thereafter;

  (35)  "State sales tax revenues", the general revenue portion of state sales tax revenues received pursuant to section 144.020, excluding sales taxes that are constitutionally dedicated, taxes deposited to the school district trust fund in accordance with section 144.701, sales and use taxes on motor vehicles, trailers, boats and outboard motors and future sales taxes earmarked by law;

  (36)  "Taxing district's capital costs", those costs of taxing districts for capital improvements that are found by the municipal governing bodies to be necessary and to directly result from a development project or expanded development project, as applicable; and

  (37)  "Taxing districts", any political subdivision of this state having the power to levy taxes.

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(L. 2003 H.B. 289, A.L. 2004 S.B. 1331, A.L. 2005 H.B. 431, A.L. 2010 H.B. 1965, A.L. 2021 S.B. 153 & 97, A.L. 2026 H.B. 3231 & 2531)