The City Council of Kansas City, Missouri passed Ordinance 160383 in October of 2016.

Generally, the ordinance provides for impacted taxing jurisdictions to receive a share of the incentive dollars that are generated by a developer’s investment.

For example, a developer may have previously received a tax abatement where in year 5, the developer did not pay any new property taxes generated by their investment in a development. The new ordinance provides that a developer would pay 25% of new taxes generated by their investment to the taxing jurisdictions and continues to abate 75% of the new taxes generated.

The ordinance provides exceptions where a developer may continue to pay no new property taxes by meeting certain criteria such as developing in a distressed census tract or by receiving a “high impact” score on a scorecard generated by the Economic Development Corporation of Kansas City, Missouri.

The ordinance includes a provision for a Shared Success Fund whereby Kansas City’s share of revenue resulting from the ordinance and other sources are dedicated to development in distressed areas.