SPRINGFIELD, Mo. (KY3) -A Missouri lawmaker is proposing a statewide economic development package designed to benefit any city in the state through a partnership with the Department of Economic Development.
Republican State Rep. Brad Christ from St. Louis introduced the “Missouri Innovation, Public Safety, and Accountability Act,” which establishes a voluntary framework for Missouri cities to designate downtown innovation districts.
“How can we build an overall economic development plan for the entire state that sets a framework so we’re not doing this one-off policy work,” Christ said.
Any Missouri city can opt their business district or downtown into the partnership. The city is responsible for streamlining the approval of new business ventures, while the state provides tax incentives.
Once designated, districts automatically qualify for tax abatements, tax increment financing, income tax credits, and opportunity zone benefits. The program includes fast-track permitting with 45-day decision timelines and “one-stop shops” for project review.
Tax benefits include income tax exclusions for new residents, employer withholding credits, relocation credits, and office-to-residential conversion credits up to 25-30% of costs.
The program directs 50% of incremental state tax revenues to local public safety and infrastructure funds. Additionally, 10% of new property tax revenues flow to a fund for rural and smaller communities.
Employers can receive up to 3% withholding credits for maintaining or growing payroll with qualifying reinvestments.
“These downtown districts, whether it’s St. Louis, Springfield, Columbia, Kansas City, are a huge bulk of Missouri’s GDP,” Christ said. “As they grow, the whole state grows. It’s good for everyone in the state if these downtown areas are successful.”
The program would sunset in 10 years unless reauthorized, and all tax provisions would become effective Jan. 1, 2027.
Jefferson City Mayor Ron Fitzwater said tax credits can benefit communities, though they face some pushback.
“Tax credits are something that are beneficial to communities, and I know that there’s positive sides of it and negative sides; they get some push back,” Fitzwater said. “But it’s more expensive to build to historic standards, so the tax credits sometimes kinda help that.”
Fitzwater said Jefferson City is working with its downtown association and other businesses to promote them and provide resources.
The state capitol is in the middle of a big revitalization itself. A new conference center is planned right in the heart of the city’s downtown, and historic properties on East Capitol Avenue are being sold to buyers with wishes to transform them into businesses, offices, and restaurants.
Christ hopes to get the bill in committee next week. It has until mid-May to make it through both chambers and reach the governor’s desk.
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