Section 48 Special Business Districts and Neighborhood Improvement Districts

• Library: Tax Law 2009

Sections 71.790–71.808, RSMo 2000 and Supp. 2007, provide that a city may establish a special business district and adopt a special business district tax. The purposes for which the district may be adopted are set out in § 71.796, RSMo Supp. 2007. The tax is essentially self-imposed and requires a two-thirds majority of voters within the proposed district. The indebtedness associated with the authorized improvement is retired by the rate of tax authorized in § 71.800, RSMo 2000. The special district concept enables municipalities to reallocate the cost of commercial improvements while, at the same time, localizing the burden of the tax on those whose property or business interest will benefit the most.

Although not a “special business district” per se, the...