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SLCEC Business Development Division
Business Attraction, Retention and Expansion in St. Louis County |
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Available Incentives from St. Louis County
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Tax Abatement |
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| TIF and Super TIF |
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Chapter 353 Corporation Tax Abatement |
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| Development Rider |
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| Tax Abatement |
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| St. Louis County offers tax abatement on both real and personal property to qualified companies. A payment in lieu of taxes (PILOT) is worked out at a negotiated percentage. In effect, this creates a contractual agreement with wide latitude for deal points. |
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| The following chart is an example of annual tax abatement savings realized on a hypothetical $20M business expansion investment with 50% tax abatement: |
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$20M investment, Year One Abatement |
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| $8,700,000 NET NEW REAL ESTATE INVESTMENT |
50% Abatement |
| Value-Incremental/Net New Investment |
8,700,000.00 |
| Assessment at 32% |
2,784,000.00 |
| Total Taxes Due |
290,928.00 |
| Less 50% Abatement |
145,464.00 |
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$11,200,000.00 PROJECTED PERSONAL PROPERTY OR EQUIPMENT |
| Equipment Value |
11,200,000.00 |
| Assessment at 33% |
3,696,000.00 |
| Total Taxes Due |
386,232.00 |
| Less 50% Abatement |
193,116.00 |
| ESTIMATED ANNUAL ABATEMENT TO COMPANY |
$338,580 |
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| This same mechanism is able to establish cash fund for companies depending on the levels of investments. |
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| TIF and SuperTIF |
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St. Louis County is also able to provide Tax Increment Financing (TIF) and SuperTIF in select areas. Some constraints exist with the use of TIF mechanisms and other mechanisms (e.g. Chapter 100-Tax Abatement) at the same site, however, both TIF and SuperTIF use new taxes generated by the project to subsidize development. In the instance of a TIF, increases in real estate and economic activity taxes are applied for a number of years to pay off bonds issued in support of the development.
A SuperTIF acts in concert with a county sponsored TIF by capturing a portion of the state withholding tax for new employees created by the project to retire bonds issued in support of the development. The presence of these additional funds enables high quality development and creation of a pro-business environment. |
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| Chapter 353 Corporation Tax Abatement |
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Chapter 353 Tax Abatement is an incentive that can be utilized by cities to encourage the redevelopment of blighted areas by providing real property tax abatement and eminent domain. Tax abatement is available for a period of 25 years, which period begins to run when the Urban Redevelopment Corporation takes title to the property. During the first 10 years, the property is not subject to real property taxes except in the amount of real property taxes assessed on the land, exclusive of improvements, during the calendar year preceding the calendar year during which the Urban Redevelopment Corporation acquired title to the real property. During the next 15 years, the real property may be assessed up to 50% of its true value.
Tax abatement is only available to for-profit "urban redevelopment corporations" organized pursuant to the Urban Redevelopment Corporations Law. The articles of association of urban redevelopment corporations must be prepared in accordance with the general corporations laws of Missouri and must contain certain items set forth in Section 353.030 of the Urban Redevelopment Corporations Law. |
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| Development Rider |
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| AmerenUE is the utility company that provides electric service in the St. Louis area, and for eligible projects offers an Economic Development Rider providing for a 15% reduction in electricity costs for a 5-year period. For more information on economic development services provided by AmerenUE, go to http://www.ameren.com/ECONOMICDEVL/ADC_ED_BusCommunityDev.asp |
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