Shoppers at Woods Supermarket and other businesses that may be developed at the Sunrise Beach Market Center will be paying slightly more in sales tax than was anticipated when the Tax Increment Financing (TIF) plan and Community Improvement District were initially approved last summer.
The board of directors overseeing the CID for the commercial center at Routes 5 and F has approved a quarter cent bump in sales tax, bringing just the CID sales tax rate to 1 cent rather 0.75 cent, according to board secretary Roger Corbin.
The rate increase is estimated to equal about $256,000 total over the life of the TIF, scheduled to be concluded in 2030.
The increase was found to be merited due to higher than anticipated expenses for site excavation, Corbin said.
The Sunrise Beach Board of Trustees recently approved a resolution to make no changes at this time to the TIF plan itself.
With commercial development at Sunrise Beach Market Center in addition to Woods Supermarket which opened May 21, there should be no need for more funding from the TIF, according to Corbin.
The TIF and CID were approved by the Sunrise Beach Board of Trustees and Sunrise Beach TIF Commission following a public hearing process.
The TIF commission recommended approval of the plan after finding the property blighted and not viable to be developed due to the amount of excavation required at the site and lack of infrastructure on the property.
The TIF and CID mechanisms capture certain tax revenue to help offset specific challenges to development, site development and professional fees in this case, to make a project feasible.
The base tax income at the time of implementation is not be affected by a TIF. It is only additional revenue from the improvement - the increment above the base - that is committed.
In the Sunrise Beach Market Center TIF plan, all of the property tax above the increment was committed to the project except for the Camdenton R-III School District which is receiving half of the increment. The village does not have a property tax, but other taxing entities such as Sunrise Beach Fire Protection District and Lake West Ambulance are forgoing any additional property tax revenue for the duration of the TIF.
Half of the current sales tax collected at the store as well as the sales tax from the CID are also being collected for the TIF.
At the conclusion of the TIF, the full property and sales taxes will be collected by the various entities and the CID will be dissolved as well.