Missouri Senate backs new tax break for businesses
JEFFERSON CITY, Mo. (AP) — Missouri senators have given their approval for a new state break that could benefit business developments.
The legislation passed Monday would allow cities and counties to join together to create special development zones. Twenty-five percent of the state withholding taxes generated by new employees in those areas could be re-routed to help pay for infrastructure development costs.
Sponsoring Sen. Lincoln Hough said the tax breaks could provide a revenue stream to help pay off bonds that finance developments. The Republican senator from Springfield said his legislation is not intended to aid any one particular business and could be used across the state.
An amendment added in the Senate last week caps the program at $5 million of tax breaks annually statewide. The legislation now goes to the House.
The concept is similar to the current option of tax increment financing, which allows a portion of local property and sales taxes from a certain area to be redirected to help finance business developments.
The bill describes the new districts as “Targeted Industrial Manufacturing Enhancement Zones,” or TIME Zones for short.