SCS SB 596 Summary

• Establishes the "Show-me Small Business Act" allowing municipalities to designate show-me small business districts in blighted areas with low to moderate income and predominantly minority populations

• Grants eligible small businesses in designated districts tax-favored status (reduction or elimination of sales tax) for up to 23 years at the municipal level and up to 15 years per individual business

• Requires municipalities to adopt ordinances and hold public hearings with notice to affected taxing districts at least 45 days before designation, and obtain county approval and general assembly concurrent resolution before implementing tax benefits

• Municipalities must submit applications to the Department of Economic Development containing district boundaries, existing business identification, previous year sales tax revenues, and an affidavit certifying the area is blighted; the department has 60 days to process applications

• Limits each municipality to one show-me small business district at any given time; becomes effective only upon voter approval of a constitutional amendment authorizing tax-free or reduced tax zones