Auditor: Taxpayers "on the hook" for $1 billion for unapproved state projects

7 months 2 weeks 12 hours ago Monday, April 10 2017 Apr 10, 2017 Monday, April 10, 2017 10:52:00 AM CDT April 10, 2017 in News
By: Kylie Callura, KOMU 8 Digital Producer

JEFFERSON CITY - Missouri State Auditor Nicole Galloway found taxpayers are paying almost $1 billion in outstanding transportation project costs that will be repaid with sales taxes they did not vote on, according to a report she released Monday

The unapproved costs total an estimated $941 million for about 60 percent of Transportation Development Districts, or TDDs, that requested financial disclosure documents.

Galloway said the audit found that TDDs across the state have little to no oversight or transparency on projects because the existing laws related to the districts are weak. This lack of oversight leads to unapproved project costs that fall on taxpayers in that district, she said.

TDD laws were originally created to help communities with transportation projects but have since morphed into public funding sources for private developers, according to the state auditor's office. 

"Insiders have rigged the system to take advantage of Missourians. It is outrageous that taxpayers are on the hook for a billion dollars in debt without even realizing it," Galloway said. "It appears as though the General Assembly has legalized self-dealing and conflicts of interest through the Transportation Development District laws. I am calling for a total overhaul of the laws that allow and even encourage this kind of activity."

The report cited multiple violations of noncompliance with state laws by transportation districts. All districts included businesses that violated the law by not notifying customers of sales taxes charged, the report said. It also said 58 percent did not include even one business that followed the guidelines of the customer tax notification law.

The following TDDs in Missouri were reviewed and found to be non-compliant with at least part of the tax notification law:

  • Rock Bridge (Boone County)
  • Harrisonville Market Place A (Cass County)
  • Highway 71/291 Partners in Progress in Harrisonville (Cass County)
  • Stone Ridge in Jefferson City (Cole County)

The report included eight other districts from around the state. 

In addition to the lack of compliance with the customer tax notification law, Galloway found the Department of Revenue failed to adequately monitor district boundaries. Of the 12 districts audited, incorrect boundary lines caused 42 percent of the districts to have sales taxes incorrectly calculated or collected, the report said. 

Galloway said the department did not provide information to taxpayers on taxes paid to the district that were supposed to be for public projects. The report said the department does not disclose how much TDDs receive in tax dollars if they did not have at least seven businesses.

The report concluded that the full amount owed may be much higher than the estimated $941 million and could continue to rise as new TDDs are formed.

More News

Grid
List
FORT LEONARD WOOD - Soldiers attending 787th Military Police Battalion for Military Police One Station Unit Training enjoy a traditional... More >>
3 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 8:45:00 PM CST November 23, 2017 in News
COLUMBIA - Columbia Parks and Recreation had big plans in mind when it first started building a championship level disc... More >>
4 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 7:49:00 PM CST November 23, 2017 in News
COLUMBIA – Shoppers put down their forks and picked up their wallets as Black Friday deals ran into Thanksgiving. ... More >>
4 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 7:39:00 PM CST November 23, 2017 in News
COLUMBIA - Volunteers, young and old, served food to hundreds of people for Almeta Crayton’s Everybody Eats 20th Annual Thanksgiving... More >>
9 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 2:50:00 PM CST November 23, 2017 in News
MEXICO - A 34-year-old man died Thursday morning after he crashed his vehicle. Omar Guadencio Cruz-Martinez, of Mexico, Missouri,... More >>
11 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 12:47:42 PM CST November 23, 2017 in News
BOONE COUNTY - The Boone County Sheriff's Department confirmed a pedestrian died after being struck by a car on Wednesday... More >>
11 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 12:19:00 PM CST November 23, 2017 in News
COLUMBIA - There are school choirs, church choirs, and mixed choirs, but now there is the opportunity to join a... More >>
11 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 11:57:00 AM CST November 23, 2017 in News
BOONVILLE - The breeding home of the Budweiser Clydesdales, Warm Springs Ranch, is hosting its inaugural Holiday Lights Festival starting... More >>
13 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 10:39:00 AM CST November 23, 2017 in News
COLE COUNTY - The Cole County Sheriff's Department said it is investigating a shooting that happened Wednesday night. ... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 9:58:20 PM CST November 22, 2017 in News
COLUMBIA - Missouri basketball star Michael Porter Jr. is recovering after undergoing surgery in Dallas Tuesday. MU said he will... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 6:34:00 PM CST November 22, 2017 in News
BARNETT, Mo - A Morgan County detective is apologizing after shooting and killing a family's dog. He was attempting... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 5:35:00 PM CST November 22, 2017 in News
COLUMBIA - On Wednesday, Columbia police released photos of an October armed robbery at Dash Liquor. On October 29,... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 5:01:00 PM CST November 22, 2017 in News
JEFFERSON CITY - The Missouri Highway Patrol is joining the fight against opioids. The drug has caused a nationwide crisis,... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 4:27:00 PM CST November 22, 2017 in News
COLUMBIA - A Columbia man involved in a deadly shooting in May has been indicted by a federal grand jury... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 4:04:00 PM CST November 22, 2017 in News
JEFFERSON CITY – With Thanksgiving comes a lot more traffic on the roads. In fact, according to AAA there will... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 2:14:00 PM CST November 22, 2017 in News
JEFFERSON CITY - Missouri Attorney General Josh Hawley sent a letter to Uber on Wednesday demanding the rideshare take immediate... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 1:51:00 PM CST November 22, 2017 in News
COLUMBIA - City Council voted 4-2 on Monday to postpone a preliminary plat for Columbia Public Schools’ new middle school... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 11:03:00 AM CST November 22, 2017 in News
COLUMBIA - A Boone County judge approved a change of venue request for a man accused in a deadly October... More >>
1 day ago Wednesday, November 22 2017 Nov 22, 2017 Wednesday, November 22, 2017 10:56:00 AM CST November 22, 2017 in News
Columbia, MO
Broken Clouds 44°
12am 40°
1am 40°
2am 40°
3am 39°

Select a station to view its upcoming schedule:

Coming Up Next

11:05p
The Tonight Show Starring Jimmy Fallon
12:07a
Late Night with Seth Meyers
1:07a
Last Call with Carson Daly
11:30p
The King of Queens
12:00a
King of the Hill
12:30a
Cops

Tonight's Schedule

7:00p
Football Night in America
7:20p
Sunday Night Football Thanksgiving Special
7:00p
Supernatural
8:00p
Arrow
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld