Missouri municipalities that have created tax increment financing districts pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the “TIF Act”) are required to submit annual reports to the State of Missouri. These annual reports must be filed online. Municipalities that previously filed annual reports online should have a personal identification number (PIN) from the Missouri Department of Revenue, which is required to use the online reporting system. Municipalities that have not received a PIN, but need to file reports, may request a PIN. Section 99.865.7 of the TIF Act requires that these reports be filed no later than November 15, 2016.

Pursuant to an amendment to the TIF Act adopted this year, the Missouri Department of Revenue will send a written notice to all municipalities that do not file their reports by November 15, 2016 or submit inaccurate or incomplete reports. If the municipality does not then file its report, or make the appropriate corrections, within 60 days from receipt of the notice, the municipality will be “prohibited from adopting any new tax increment finance plan for a period of five years from the date of the Department of Revenue’s notice.” All reports are deemed accepted unless a written objection is delivered by the Department of Revenue.

Municipalities may verify their past compliance with this requirement. Please note that the Missouri Department of Revenue’s online reporting system will only accept reports for 2016. Municipalities that wish to file or amend reports for prior years must submit a paper copy using this form.

In addition to the report, an annual statement showing the payments made in lieu of taxes received and expended in that year, the status of the redevelopment plan and projects, the amount of outstanding bonded indebtedness and any additional information that the municipality deems necessary must be published in a newspaper of general circulation in the municipality.

Please also note that Section 99.865.3 of the TIF Act requires municipalities to hold duly-noticed hearings regarding TIF redevelopment plans and redevelopment projects every five years after their adoption. The purpose of the hearing is to determine if the applicable redevelopment project has made satisfactory progress.

Please contact your GilmoreBell attorney if you have any questions regarding the reporting requirements contained in the TIF Act.

Posted: Oct 20, 2016