County’s gravel tax helps pay off TIF debt

Starting in the 2016-2017 fiscal year, a portion of the Nodaway County half-cent gravel tax will be applied toward paying off the Maryville Town Center Tax Increment Financing (TIF) project.

Because the town center was designated as a blighted area, it qualified as a TIF project for economic development. When improvements were made to the area’s infrastructure, the city didn’t have the funds to pay for them. TIF bonds with a 20-year pay-off were issued to pay for the improvements.

In 2015, the TIF bonds were refinanced, dropping two years off of the pay-off date, which should be in 2023.

Missouri law allows the collection of a percentage of economic activity taxes, or sales taxes, to be applied toward the TIF bonds.

Businesses’ customers in the TIF district pay the taxes as other Maryville businesses, but the taxes are distributed differently.

In the TIF district, the city receives its base tax portion and an additional one half of the TIF tax increase. The other one half goes toward paying off the TIF project.

During the 2016 fiscal year, the one half of the increase in taxes generated the following amounts to be applied toward paying off the TIF bonds:

•General fund, $61,502

•Maryville Parks and Recreation, $7,688

•CIP fund, $30,751

•Debt retirement fund, $7,688

•Mozingo Lake and Recreational Park, $30,751

•County sales tax, $61,502

•Real Estate Pilot, $105,179

During this fiscal year, approximately $30,751 of the county’s one half cent gravel tax will be applied to the TIF. The new conference center tax will also be applied.

City staff said the addition of the gravel and conference center taxes may decrease the debt pay-off date by a year.