Section 16.18 Enterprise Zones and Enhanced Enterprise Zones

• Library: Local Government Deskbook (2017 Ed.)

B. (§16.18) Enterprise Zones and Enhanced Enterprise Zones

The term “enterprise zone” describes a distressed area targeted for intensive economic development efforts. Eligible businesses locating or expanding in designated zones may receive various incentives including:

· real property tax abatement;

· awards of tax credits and job training credits;

· favorable state tax treatment for investments and income; and

· waivers of business license fees, local zoning restrictions, and other “burdensome” local development requirements.

See, e.g., 12 CSR § 10-2.085 (enumerating benefits and establishing calculation methodology). In addition to industrial concerns, eligible activities include retail businesses, hotels and motels, and certain recreational facilities. Eligible “recreational activities” expressly exclude excursion gambling boats. See § 135.200, RSMo 2016; see also § 135.247, RSMo 2016.

Missouri law currently permits establishment of up to 50 enterprise zones statewide. Section 135.210.4, RSMo 2016. Additional enterprise zones may be designated, however, by special legislation. See, e.g., §§ 135.206, 135.208, and 135.256, RSMo 2016; see also § 135.207, RSMo 2016 (authorizing noncontiguous “satellite zones” within certain cities and villages). Designation requires conformance with threshold economic distress criteria. See § 135.205, RSMo 2016. For cities located within an MSA (Metropolitan Statistical Area), the resident population must be between 4,000 and 72,000 at the time of designation; for non-MSA cities, the population must be between 1,000 and 20,000. Section 135.205(3). Statutes and regulations governing establishment of an enterprise zone provide that, after public hearing, qualifying local governments must apply for and receive approval...