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Abstract: 

In 1982 the Missouri Legislature passed the Real Property Tax Increment Allocation Redevelopment Act, which permitted the use of TIFs in Missouri. There is often concern from the affected jurisdictions when part of their tax base is frozen during the TIF period. This article addresses those concerns by estimating the fiscal impact of the proposed TIF district on each of the affected jurisdictions. Economic and demographic variables are projected at the city and county levels to establish what is expected to occur in each jurisdiction if no policy changes are enacted. The attributesof the TIF district are then described and projected forward 23 years, the maximum number of years for repaying the public investment. Then, using the methods described by Lawrence and Stephenson (1995), the impact on each affected taxing jurisdiction is calculated. Finally, the revenue available to pay for redevelopment project costs is estimated.

Keywords:  Retail development; natural growth; repayment of TIF debt obligation

Affiliations:  1: University of Missouri-Columbia Community Policy Analysis Center; 2: University of Missouri-Columbia Community Policy Analysis Center; 3: University of Missouri-Columbia Community Policy Analysis Center.