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Release: Koenig Applauds Governor Signing Tax Legislation

JEFFERSON CITY, Mo. – Legislation signed into law this morning establishes new rules and procedures for certain counties’ tax increment financing commission As part of a larger movement to reform TIFs, HB 1434 is Rep. Andrew Koenig’s most recent effort to accomplish meaningful tax reform in the Missouri House.

 

Koenig was previously the handler of tax cut legislation that went into effect over Gov. Jay Nixon’s veto, which gradually reduced the state’s income tax from 6 percent to 5.5 percent. This most recent tax bill will make it more difficult for municipalities to use tax increment financing if a county TIF commission disapproves of a proposal.

 

“This change is significant, but more steps are needed to reign in these financial incentives. TIF’s have become an excuse to send a significant amount of tax dollars in the form of taxpayer subsidies to private enterprise and I believe that’s wrong. While this doesn’t solve the whole problem, it restricts TIfs from being used for assembling land, financing costs, and various other project costs when disapproved, and returns them to more of their original purpose. It’s an excellent step forward, and I was proud to sponsor this legislation”, said Koenig, R-Manchester.