Manufacturer’s inventories including raw materials, goods in process and finished goods, as well as goods and wares of retailers, distributors, and wholesalers are exempt from all state and local property taxes.
Urban Redevelopment Corporations
Missouri promotes urban redevelopment through a potential 25-year ad valorem tax incentive program known as Chapter 353. Any city (there is no size restriction) may establish an Urban Redevelopment Corporation to redevelop areas designated as blighted due to age, obsolescence, or physical deterioration. Under the program, up to 100% of improvements to real property may be exempt from state and local property taxes for up to 25 years.
Industrial Revenue Bonds
Cities or counties are authorized, by a program known as Chapter 100, to issue industrial revenue bonds (revenue or general obligation) which may offer an opportunity to abate property taxes. It may be possible to exempt most of the real and personal property tax of buildings and machinery financed by a Chapter 100 bond if the city or county owns the property financed by the bonds. In this case, the company would lease the assets from the city for the term of the bonds. The amount of exemption depends on the structure of the lease, the residual value at the end of the lease, and the interpretation of the statutes by the county assessor of leasehold value. The Missouri Development Finance Board (MDFB) also has the ability to issue tax-exempt or taxable bonds. The MDFB cannot issue general obligation bonds, but it can exempt property taxes under the same method as Chapter 100.
In addition to the Brownfield Redevelopment Program’s income tax and financing benefits, the program allows for the abatement of local real property taxes. The term of the benefits (not to exceed 15 years) and the percent of abatement (up to 100% and based on improvements made to real property) are determined at the discretion of the local authorities.