Missouri auditor says taxing districts are breaking state law

The Missouri Auditor’s Office has released the findings of its investigation into the state’s transportation development districts.

TDDs were established in Missouri 27 years ago as special political subdivisions to fund construction, operation and/or maintenance of transportation-related projects.

State auditor Nicole Galloway examined 12 districts from across Missouri as a sample and discovered that all 12 had businesses that violated state law by not notifying consumers within the TDD boundaries of the additional sales tax rate.

“Insiders have rigged the system to take advantage of Missourians. It is outrageous that taxpayers are on the hook for $1 billion 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.”

Two of the 12 districts sampled are in mid-Missouri, including Stone Ridge TDD in Jefferson City and Rock Bridge TDD in Columbia.

An estimated $941 million in project costs is owed statewide for approximately 60 percent of TDDs, the only ones that submitted requested financial disclosure documents.

Galloway said the full amount owed is likely much higher than that, and continues to rise as new TDDs continue to be formed.

House Bill 836, currently before the Missouri House of Representatives, would establish a TDD for I-70 through multiple counties.

There are a total of 205 transportation development districts in the state of Missouri.

The full report can be seen at this link.