Liberty Forward - Your Advocate For Fiscal Responsibility In Liberty
Welcome to the first blog ever created to encourage responsible government in Liberty, Missouri. Liberty Forward was founded in 2007 to promote both fiscal responsibility in city government and the idea that government spending should be transparent and information should be easy for citizens to obtain and understand. Liberty Forward is your watchdog. IF YOU HAVE ANY ISSUES YOU DON'T FEEL YOU ARE GETTING RESPONSE ON LET US KNOW AND WE WILL FOLLOW UP ON THEM FOR YOU!
Saturday, February 2nd 2008
9:55 AM
Triangle TIF Clarification When a Liberty Business Moves In
A Quote From Dan Estes - Assistant City Administrator
For clarification purposes, The Hy-Vee deal protects the current store's retail sales.
TIF allows only for the capture of new, incremental sales and the respective sales taxes generated. The development retains 50% of the incremental sales tax to assist in the payment of TIF related costs. The remaining 50% of all new, incremental sales taxes generated flows to all taxing entities that have sales taxes in place. A simple example: Assume the current retail sales base is $100. The projected new store sales are $200. Thus the expected increase in sales is $100. The retail sales base for taxing entities is $150 (100% of the old base + 50% of the new incremental sales). The sales tax base for tax incentive purpose is $50.
Since the Hy-Vee deal is a relocation within Liberty, the City required that the current stores retail sales be a protected base. Thus, Liberty will continue to enjoy 100% of the sales taxes currently being collected and 50% of the expected growth that will come from an expanded, modern grocery store. In addition, when a replacement concern is located at the current Hy-Vee location and, assuming the concern will be retail based, the City will receive additional sales tax revenues over and above the amounts described earlier.
In our opinion, the Hy-Vee deal is a wining situation. Liberty government will see real growth in its retail base. Residents will be afforded modern, expanded grocery amenities and services.
Thanks to Mr. Estes for the above clarification.
Check out more at http://www.libertyforward.org.
For clarification purposes, The Hy-Vee deal protects the current store's retail sales.
TIF allows only for the capture of new, incremental sales and the respective sales taxes generated. The development retains 50% of the incremental sales tax to assist in the payment of TIF related costs. The remaining 50% of all new, incremental sales taxes generated flows to all taxing entities that have sales taxes in place. A simple example: Assume the current retail sales base is $100. The projected new store sales are $200. Thus the expected increase in sales is $100. The retail sales base for taxing entities is $150 (100% of the old base + 50% of the new incremental sales). The sales tax base for tax incentive purpose is $50.
Since the Hy-Vee deal is a relocation within Liberty, the City required that the current stores retail sales be a protected base. Thus, Liberty will continue to enjoy 100% of the sales taxes currently being collected and 50% of the expected growth that will come from an expanded, modern grocery store. In addition, when a replacement concern is located at the current Hy-Vee location and, assuming the concern will be retail based, the City will receive additional sales tax revenues over and above the amounts described earlier.
In our opinion, the Hy-Vee deal is a wining situation. Liberty government will see real growth in its retail base. Residents will be afforded modern, expanded grocery amenities and services.
Thanks to Mr. Estes for the above clarification.
Check out more at http://www.libertyforward.org.
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