Tell Sen. Brown to Vote “NO” on SB-5 and SB-32

By Ryan Reed

On Jan 30, 2013, the Senate Committee on Jobs and Economic Development held a hearing on Senate Bill 5 (SB-5) and Senate Bill 32 (SB-32).   Sponsored by Senator Brad Lager of Savannah and Senator John Lamping of St. Louis, each bill would significantly lower the cap on State Historic Tax Credits.  If passed, SB-5 and SB-32 could have a crippling effect on a program that has made a significant financial impact across the State of Missouri.

Created in 1998, the Missouri State Historic Tax Credit is a law providing an investment tax credit equal to 25 percent of approved costs associated with qualified rehabilitations.  The resulting financial impacts have been a boon for the state.  Between 1998 and 2010 the Missouri State Historic Tax Credit has resulted in 43,105 jobs created or retained, leveraged $2.9 billion in private investment, and generated $669 million in local and state tax revenues.  Not only has the tax credits helped out urban centers, it has been beneficial to our rural communities.  In fact, of the 74 communities in Missouri that have utilized historic tax credits, 68 have been rural communities.  Specifically, Springfield leveraged roughly $130 million in private investments from historic tax credits while Cape Girardeau leveraged $35 million.  Why would our state legislature want to cap and sunset an incentive that has compounded benefits economically and greatly enhanced Missouri’s communities?

15 North Main Street in Cape Girardeau.  Before and After.

A specific example on a single property utilizing state historic tax credits and the compounding financial benefits within a community is 15 North Main Street in Cape Girardeau.    Rehabbed by Michael Hess in 2012, the project incurred over $230,000 in expenses of which $212,000 was eligible for the state historic tax credit resulting in $53,000 in credits. Below is breakdown of figures.

Benefits Accrued by the State and Local Community:

An increase of employment from 5 to 30 individuals.
Generating 4 to 5 times more in local sales tax
Generating 4 to 5 times more in state sales tax

 Increase in Tax Revenue:

State income tax will be generated on 30 jobs instead of 5 jobs

Went from paying $2,000 per month in sales tax to nearly $10,000 per month in sales tax

Generating between $3,320 and $4,400 a month more in state sales tax

Generating between $2,680 and $3,600 a month more in local sales tax

Property tax revenue to the county will increase.

Rather than being demolished and all the building material ending up in a landfill, the building has found new life and is a tangible piece of the town’s history.  It keeps the character of the town in place making it unique from any other town.

Our senator, Dan Brown of Rolla, has stated that he is not in favor of the state historic tax credit.  If you live in District 16, which includes Crawford, Dent, Gasconade, Maries, Montgomery, Osage, Phelps and Pulaski Counties, please contact Senator Brown and tell him to vote “NO” on SB-5 and SB-32.  He can be contacted at Dan.Brown@senate.mo.gov or via telephone at (573) 751-5713.  If you are not sure what to say, please copy and paste the message below into an email with your name.

Senator Brown,

I am a voter in the 16^th Missouri Senate District and I would like you to vote “NO” on SB-5 and SB-32 which would severely cap and subsequently sunset the Missouri State Historic Tax Credit.

The Missouri State Historic Tax Credit has been economically beneficial for the State of Missouri since its creation in 1998.  Specifically, the Missouri State Historic Tax Credit has resulted in 43,105 jobs created or retained, leveraged $2.9 billion in private investment, and generated $669 million in local and state tax revenues.  Not only has the tax credits helped out urban centers, it has been beneficial to our rural communities.  In fact, of the 74 communities in Missouri that have utilized historic tax credits, 68 have been rural communities.  Specifically, Springfield leveraged roughly $130 million in private investments from historic tax credits while Cape Girardeau leveraged $35 million.

As an elected official representing my district, please vote no on SB-5 and SB-32. 

Thank You

(YOUR NAME)

If you live outside of Senator Brown’s district but are not sure who your senator is you can find them on the Legislative Look-Up on the State of Missouri's website.

Thank you for your time and commitment!

Rolla Preservation Alliance