What is a CID?

What is a Community Improvement District?

A Community Improvement District is created by property owners in a defined area who voluntarily tax themselves in order to fund improvements within the district’s boundaries. The legislation allowing for their creation requires the potential CID to contact all property owners who could be affected, to create a district boundary, to identify a Board of Directors, generate a business plan, and determine a budget and a means of funding.

There are two main types of CIDs in Missouri:

1. Political Subdivisions *Martin City is a PS.
2. Not-For-Profits

CIDs can be a powerful public-private tool used to revitalize business districts and re-energize communities. When commercial property owners vote to impose additional taxes on themselves, they become empowered to create what’s best for their district’s economic growth.

Eligible Public Improvements:

  • Bridge upgrades
  • Convention centers
  • Parking lots
  • Public Parks
  • Sanitary Sewer
  • Sidewalks
  • Storm water facilities
  • Streets

Financing

  • Not-for-profits are funded by property taxes and/or special assessments, fees, and rents for district property or services, grants, gifts, and/or donations.
  • Political subdivisions are funded by public money through sales tax assessments. (Martin City is a political subdivision)
  • CID’s may issue bonds, notes, and other obligations. Such obligations shall mature within 20 years of the date they are issued.

The City does not administer the local component of the sales tax. Retailers remit sales taxes to the State of Missouri and the receipts are then distributed to the City. View Missouri Sales and Use Tax Rates

Organizing A CID

By request petition, signed by property owners owning at least 50% of the assessed value of the real property, and more than 50% per capita of all owners of real property within the proposed CID.

Board of Directors

The petition specifies whether the Board of Directors will be elected by qualified voters or appointed by City Council. The Board of Directors should consist of at least 5 but not more than 30 members. Each director must be a registered voter and an owner or authorized representative of a business or property in the district.

 

For specific information about CID’s, please contact Beth Breitenstein, City of Kansas City, Missouri: 816-513-2612 beth.breitenstein@kcmo.org