Audit: Transportation tax districts tardy in filing financials

The audit reviewed 176 TDDs operating in Missouri in 2011 and found penalties were not assessed on the 49 districts filing late audit reports, amounting to nearly $17 million in potential fines. Among the districts in noncompliance is the troubled Indian Ridge Resort in Branson West. According to the audit, Indian Ridge developers did not file a financial statement with the state between 2009 and 2011, resulting in maximum fines of $964,000.

Missouri Auditor Tom Schweich said state law authorizes penalties for late filing districts, but the statute does not determine the agency responsible for assessing and collecting the fines.

Calling for legislative action, Schweich said state law also currently does not specify the fund, agency or program that would receive the collected fees. As of Feb. 1, 2013, the potential accumulated fines could be as much as $16.8 million for required reports between fiscal 2009 and 2011, the audit said.

The TDD program creates political subdivisions that impose taxes or levies within the district to fund construction of roads, bridges and other transportation projects. The work is often financed through the issuance of revenue notes, bonds or other debt securities for a period not to exceed 40 years.

While nearly 70 percent of TDDs have been established in the St. Louis and Kansas City areas, local projects developed through the state’s TDD program include Branson Landing, Branson Regional Airport, College Station and Ozark Centre. The number of TDDs established has slowed each year since 2005, when nearly 30 districts were created. In 2011, five TDDs were established, according to the report.

Since the first TDD was established in 1997, the state program has helped fund nearly $1.7 billion in projects with anticipated revenues of $2.05 billion, according to the audit.

A few projects, including Heer’s Tower in Springfield, approved in 2006, have since been deemed unfeasible by developers.