Tax Increment Financing (TIF) is enabled by the Real Property Tax Increment Allocation Act of Missouri (Sections 99.865 RSMo). TIF permits the use of a portion of local property and sales taxes to assist funding the redevelopment of certain designated areas within a community. Areas eligible for a TIF must contain property classified as "blighted", "conservation" or an "economic development" area as defined by Missouri Statutes. Typical budget items funded by TIF include professional services, land acquisition, rehabilitation of buildings, construction of infrastructure and other projects.
The idea behind the TIF is that property and/or sales taxes (depending upon the type of redevelopment project) will increase in the designated area after the redevelopment, and a portion of the increase of these taxes collected in the future may be allocated by the City to help pay for certain project costs. A TIF can be authorized for up to twenty-three (23) years.
The TIF Commission, subject to the approval of the City Council, may exercise all powers delegated under the Real Property Tax Increment Allocation Act (RSMo), and in particular those enumerated in Section 99.820 (RSMo), i.e., to make recommendations to the City Council concerning the adoption of redevelopment plans and projects and the designation of redevelopment project areas pursuant to the notice and hearing requirements of Sections 99.800 to 99.865 (RSMo).
The TIF Commission is composed of twelve members: six appointed by the St. Louis County executive; three by the Mayor; two by the school board; and one by other districts levying property tax in a proposed redevelopment area. It meets on an as-needed basis when there is business to conduct.
Additional information about the State Statute RSMo 99.865 can be found here.