urbanSTL

Here is the bill

https://documents.house.mo.gov/billtrac ... 1H.02I.pdf

Summary

1. What the State Does

Designates Innovation Districts
• Allows a city to apply to the Missouri Department of Economic Development (DED) to designate one Innovation District overlaying its downtown, CBD, or Main Street area.
• DED approval is largely ministerial and must occur within 45 days (automatic approval if no action).

Creates State-Level Incentives in the District
Once designated, the following are available within the district:

A. State Tax Recapture for Public Safety
• 50% of new state sales tax and state income tax withholdings generated above a fixed baseline within the district are redirected into a local Innovation District Public Safety Fund.
• Funds can only be used for:
• Police staffing
• Lighting, cameras, sidewalks, streets, public realm
• Infrastructure and safety improvements
• Existing revenues are not touched—only net new growth above baseline.

B. Income Tax Exclusion for New Residents
• Individuals moving from out of state into the district receive a Missouri income tax exclusion (subject to residency requirements and recapture if they leave).

C. Employer Withholding Incentive (Retention/Reinvestment)
• Businesses maintaining jobs in the district can retain up to 3% of gross wages (state withholding) for up to 10 years.
• Funds must be reinvested in qualified improvements (security, capital upgrades, tenant improvements, infrastructure).

D. Employer Relocation Credit
• Up to $5,000 per relocated employee (earning $70k+) for out-of-state firms moving into the district.

E. Office-to-Residential Tax Credit
• 25% tax credit (30% in Main Street districts) for qualifying office-to-residential conversions.
• $50M annual statewide cap.
• Transferable credits.

F. Master Scorecard
• A single, standardized scoring system governs:
• Property tax abatement
• TIF
• Office-to-residential credits
• Provides predictable, tiered incentive levels.

G. Rural Missouri Development Fund
• Wealthiest cities with districts contribute 10% of new property tax growth in their district to a statewide rural fund.
• Used for housing, infrastructure, workforce, public safety in rural communities.

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2. What a City Must Do

Participation is voluntary. If a city elects to create a district, it must:

A. Submit a Master Plan

Includes:
• District boundaries
• Vacant/underutilized properties
• Public safety and infrastructure priorities
• Projected housing/jobs impacts

B. Create a “One-Stop Shop” Permitting Process
• Fast-track review (45-day deadline, deemed approval if no action)
• Single empowered point of contact

C. Adopt Fee Reduction Policies
• Waive or reduce duplicative or extraordinary development fees (without harming core building department funding)

D. Provide Building Code Flexibility for Adaptive Reuse
• Performance-based pathways allowed
• Maintain fire and life safety standards

E. Establish Local Public Safety Fund Account
• Receive and allocate the 50% state incremental revenue
• Funds must supplement, not replace, existing public safety funding

Failure to maintain these requirements can result in suspension of district designation.

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3. Benefits to Cities
• Automatic access to state incentives without repeated legislative approvals
• 50% of new state sales + income tax growth stays in the district
• Faster permitting and greater development predictability
• Dedicated funding stream for:
• Police
• Infrastructure
• Streetscape
• Blight remediation
• Attracts new residents and employers from out of state
• Major support for office-to-residential conversions
• Standardized incentive structure reduces political friction

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4. Benefits to Businesses
• Up to 3% wage withholding retention for reinvestment
• Relocation credits for new out-of-state firms
• Transferable 25–30% office conversion tax credits
• Faster permitting
• Predictable incentive scoring system
• Ability to combine with other Missouri programs (Quality Jobs, One Start, etc.)

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Overall Intent

HB 3231 creates a downtown-focused reinvestment model that:
• Redirects a portion of new state tax growth back into the district that generates it
• Prioritizes public safety and infrastructure
• Encourages housing activation and office conversions
• Standardizes incentive approvals
• Shares a portion of growth with rural Missouri

The program sunsets after 10 years unless reauthorized.

if you move to downtown from out of state, you will not have to pay Missouri state income tax as long as you live in downtown.

Annual Savings by income level

$50,000 ~$2,100

$75,000 ~$3,300

$100,000 ~$4,500

$150,000 ~$6,900

$200,000 ~$9,300

Also MD almost destroyed Boeing after buying it with Boeing’s money. McDonnell Douglas is hardly anything I’d want to brag about too much, they’re a large part of why we are behind Seattle, Dallas, and Northern VA. Only reason Boeing is turning around is their current CEO is a Seattle guy and the company is probably more likely to move there than here. I’m glad Schmitt helped with the contracts but we should all pray the old MD leadership never controls Boeing ever again.


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Not to mention the economic realities of rural Missouri - it’s just not that productive of land. The farm land is average to bad in all but a few places and we don’t have oil, gas, or coal, and only a small amount of iron. All of which is fine by me. Missouri is a beautiful state compared to most of its Midwest counterparts because it hasn’t been steamrolled by industry and monoculture farming