Bill > HB1777

This bill modifies tax increment financing (TIF) rules by adding new provisions for the allocation of state revenues to municipal redevelopment projects, specifically introducing changes that will take effect on January 1, 2027. Under the new provisions, up to 50% of new state revenues generated by businesses within a TIF project area can be allocated to the municipality's special allocation fund. Importantly, the bill mandates that these funds must be distributed to political subdivisions (such as neighborhood improvement districts, ambulance districts, fire districts, library districts, or school districts) that levy taxes on properties within the project area, ensuring that these entities receive a portion of revenues they would have collected if the TIF had not been implemented. This change aims to provide more transparency and financial fairness in how tax increment financing revenues are distributed, allowing local taxing entities to benefit from economic development projects even when TIF mechanisms are in place. The bill builds upon existing complex TIF regulations and seeks to create a more equitable framework for sharing economic development gains across different local government entities.

https://house.mo.gov/Bill.aspx?bill=HB1777&year=2026&code=R