Local Tax Increment Financing

Purpose

Local Tax Increment Financing (Local 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 Local TIF must contain property classified as a "Blighted", "Conservation" or an "Economic Development" area, or any combination thereof, as defined by Missouri Statutes.

Typical Budget Items

TIF may be used to pay certain costs incurred with a redevelopment project. Such costs may include, but are not limited to:

• Professional services such as studies, surveys, plans, financial management, legal counsel;
• Land acquisition and demolition of structures;
• Rehabilitating, repairing existing buildings on site;
• Building necessary new infrastructure in the project area such as streets, sewers, parking, lighting; and
• Relocation of resident and business occupants located in the project area.

Supported by Local Tax Incremental Revenues

The idea behind Local TIF is the assumption that property and/or local sales taxes will increase in the designated area after redevelopment, and a portion of the increase of these taxes collected in the future (up to 23 years) may be allocated by your municipality to help pay the certain project costs, partially listed above.

Responsibilities of the City Council and the Local TIF Commission

The governing body of the municipality is required to establish a TIF Commission, composed of certain members including representatives of other local taxing authorities within the redevelopment project area as defined by state statute. The municipality is also responsible for the approval of ordinances that establish a comprehensive Redevelopment Plan, and for approval of the specific TIF Redevelopment Project. Other responsibilities of the TIF Commission include holding required public hearings, preparing documents to justify the need for TIF and other duties as required by state statutes governing Local TIF projects.

Independence Tax Increment Financing Policy

The City has established a TIF Policy per state statute. Below you will find a link to the TIF Policy and Application for TIF funding.

TIF Policy and Application

State of Missouri Annual Local TIF Reports

The City is required to submit an annual report, to the Missouri Department of Revenue, of all local TIF districts in the municipality. Below you will find links to past Missouri TIF Reports.

Missouri Annual TIF Reports

Independence Annual TIF Reports

• 2015

City of Independence Contact Information