Galloway releases audit showing no improvements made after sales tax increase in Cass County

Missouri State Auditor Nicole Galloway released a report on Monday on the Hospital Interchange Transportation Development District in Cass County.

The report brought to light a failed project that resulted in thousands in taxes collected but no benefits for taxpayers.

“Over the years, this taxing district has collected thousands in tax dollars, but there is nothing to show for it,” Galloway said. “This is another example of why safeguards are needed to ensure these special taxing districts are established with better protections for Missouri taxpayers.”

The TDD was formed in 2010 to improve the Highway 71 corridor through upgrades and the construction of several bridges.

Galloway said a 1 percent sales tax on transactions within the district was approved in April 2011.

In December 2016, the TDD board of directors acknowledged funding to move forwards with the upgrades was not materializing and began to dissolve the TDD, Galloway said.

Sales tax revenue collected by the district went towards district administration, financing no actual transportation improvements.

Galloway said through the audit it was determined that the board can move forward with dissolution and should repeal the sales tax.