The Missouri Senate on March 4 passed Senate Bill 22 sponsored by Sen. Andrew Koenig, R-Manchester, which reforms tax-increment financing in flood plains.

To qualify for TIF, the development project must be considered “blighted.” Flood plains are considered blighted, so Koenig said there is an incentive to develop in these areas despite the potential risks.

The legislation modifies the definition of “blighted” so projects in flood plains would not be eligible for TIF.

Koenig said he has been working on this legislation for several years now and is “confident we will finally pass this important reform so your tax dollars will not continue being washed down the river.”

Koenig said, “I believe TIF is essentially a form of corporate welfare, and I want to protect taxpayer’s money in all areas of state government. In some instances, people do not realize their tax dollars are going to private developers that do not need public assistance in the first place. From corporate headquarters and entertainment districts to fancy shopping malls, TIF has earned a reputation as a corporate welfare program.”