Mo. Auditor Finds Unaccountable Tax Districts Rack Up $1 Billion in Taxpayer Debt

ST. LOUIS (KMOX) – Missouri’s state auditor says many Transportation Development Districts (TDDs) statewide often have little oversight or transparency, amassing nearly $1 billion in outstanding project costs unapproved by taxpayers.

CLICK HERE to view a complete copy of the report.

Nicole Galloway joined KMOX’s Charlie Brennan on Monday morning — she says the lax oversight means those controlling the districts can, essentially, do what they want.

Case in point: The St. Louis Convention Center’s TDD formed in 2010.

“It was supposed to charge sales tax for 13 years,” Galloway says. “Four years later, the board – which is controlled by the property owners – changed, so the sales tax will be charged for 40 years.”

Galloway says most districts are created and managed by the owners and developers who stand to gain most from the districts’ tax collections, creating a conflict of interest.

“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 says in a news release. “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.”

Follow us on Twitter | Like us on Facebook

Comments

One Comment

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS St. Louis

KMOX Podcasts
High School Spotlight

Listen Live