The House took a great step forward in helping Joplin’s local economy recover from the devastating May 22, 2011 tornado that cut through a large swath of the Southwest Missouri town. Though the bill is difficult to explain due to the technical nature of Tax Increment Finance law, the basic idea is as follows:
With approval from local governing officials, redevelopers are incentivized to build certain projects in certain areas - in this case those affected by the disaster. A portion of the new tax revenue from sales and property taxes that the local government would have received from the growth that this redevelopment causes is then diverted to help the developer cover some of the costs of construction.
This legislation will add future state revenues to the mix, reinforcing the state's commitment to Joplin. The city and state benefit by revitalization and the new tax revenue they receive from that revitalization, the developer benefits by having some of their risk mitigated, and the citizens benefit by having a faster redevelopment of the town.
When certain areas are devastated by disaster, the entire system of governance, economics, and public safety is at risk. Joplin held together in the moments, days, weeks, and now many months since the May 22, 2011, tornado. In fact, we took great pride in taking care of one another. It is my hope that this legislation will serve to compliment the already indelible spirit of Jasper County's economic hub.
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