Tax Breaks for New Development Risks Depleting Tax Pool
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Tax Breaks for New Development Risks Depleting Tax Pool

Date: September 13, 2011
By: Stacey Kafka
State Capitol Bureau

After discussing legislation Tuesday Senators worry that school districts in disaster zones could now see a large decrease in the tax pool.
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Wrap: New ammendments to a disaster relief bill add tax benefits to new businesses.

This expansion and tax cuts proposed for destroyed businesses would greatly decrease the tax pool for Joplin area schools.

New developments will continue paying taxes on the property, but property tax collected by the city will stay frozen at the 2011 rate.  

Joplin representative Bill White says it's hard for such widespread destruction to not impact schools.

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Description: "It's just that we have 300 of these things that are totally gone and a lot of others that are damaged, so it will be an impact on the schools."

To offset losses the Governor added $150 million in aid to Joplin school districts this year.

 From the state Capitol, I'm Stacey Kafka.

A Senate Committee was urged to pass a disaster relief bill Tuesday.
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Wrap: A disaster relief bill aimed at giving destroyed businesses tax breaks ammended today to help create new businesses in disaster zones.

Tax Incriment Financing added to the bill creates incentives for new developments.

Joplin representative Bill White says these developments must be approved by the city.

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Description: "It gives the city a tool in planning because without this individual developers can go get a TIF. If you don't need their financing you can still do what you want if you can get the ground."

The businesses will still pay taxes, but revenue from tax increases will go towards new development in the area.

From the state Capitol, I'm Stacey Kafka.

A disaster relief bill passed by the House is now in the hands of the Senate.
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Wrap: A senate committee discussed a disaster relief bill Tuesday passed by the House last week. 

Representative Bill White of Joplin says he thinks this legislation is crucial to his constituency.

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Description: "To me it's a fairness issue. When you're hurt you get taken care of, and when you're healthy you do your obligations."

The Senate Ways and Means Committee will vote on this bill during an executive session.

From the state Capitol, I'm Stacey Kafka.

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