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100 North Main Street
O'Fallon, MO 63366
Phone: 636-379-5532
Email: econdev@ofallon.mo.us

©2018 City of O'Fallon, Missouri
 

Taxes and Incentives

W

hen you’re relocating or building your business, you need a community partnership that will provide a variety of tools for getting the most out of your investment and maximizing your ROI. O’Fallon prides itself as a business-friendly community offering an unmatched level of free economic development services.

Here are a few great reasons for choosing award-winning, safe, affordable, centrally-located O’Fallon:

O’Fallon’s Low Taxes

  • 5th lowest corporate tax rate in the nation
  • 7th lowest tax rate for unemployment insurance
  • 7th lowest state property tax rate
  • Municipal property tax rates that are 1530% less than St. Louis County communities
  • A real/personal property tax rate = 7.6357.8091 per $100 of assessed valuation. (An additional surtax applies to commercial real property = $0.53 per $100 of assessed valuation.)
  • A sales tax rate of 7.95% (state and local taxes combined)
  • At 17.3 cents per gallon, the third-lowest state gasoline sales tax

O’Fallon’s Cost-saving, Business-boosting Incentives

The City of O’Fallon’s potential financial incentives include tax abatement, sales tax exemptions, rebates and other funding mechanisms.

And, to foster economic growth, the City of O’Fallon’s Incentive Policy provides guidelines for granting financial incentives. Contact us to learn more.

In addition to these tools, Missouri offers state tax credits and sales tax exemptions to industries that reduce capital and work force costs.

Midwest BankCentre
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O’Fallon Incentives
O’Fallon puts your business on the fast track to success

The City of O’Fallon is dedicated to achieving the highest quality of development, infrastructure, and quality of life for its citizens. These goals are met, in part, through the enhancement and expansion of the local economy. Because of the inherent competition between cities, counties and states for new businesses and jobs, the City of O’Fallon recognizes that incentives are sometimes necessary to allow a community to reach its full economic potential.

Efficient Approval Process

In addition, the City’s procedures call for a quick, 7-14 day turnaround time for plan reviews to be submitted for rezoning requests, subdivision plats, conditional use permits (special use permits), etc.

Chapter 100 Revenue Bonds

This versatile business tool helped O’Fallon’s largest private employers, Mastercard International and Citi, locate here through the assistance of property tax abatements and sales tax exemptions on construction materials. Here’s how the bonds work: the City issues bonds to finance real and personal property for eligible development projects. Upon issuing the bonds, the City can then provide tax abatements on the bond-financed property over the term of the bond.

Special-purpose Taxing Districts

To boost economic development, O’Fallon supports 11 special taxing districts as a means of funding public improvements. Special taxing districts include:

  • Community Improvement Districts (CID)
  • Transportation Development Districts (TDD)
  • Neighborhood Improvement Districts (NID)

Cooperation Agreements (Sales Tax Rebates)

This funding mechanism benefits the entire community through the funding of public infrastructure. Under such an agreement, and to offset a portion of project investment costs, municipalities can appropriate the increase in sales taxes created by new private capital investments.

Additional Local Incentives Offered

Chapter 353 Tax Abatement and Tax Increment Financing are two other programs considered by O’Fallon.

Chapter 353 tax abatement is an incentive allowed by Missouri law to encourage the redevelopment of blighted areas through the abatement of real property taxes and, where appropriate, the use of eminent domain. To be eligible for tax abatement, either the City or a private entity must form an Urban Redevelopment Corporation (URC) pursuant to the Urban Redevelopment Corporations Law.

Tax Increment Financing (TIF) is a public funding mechanism to assist private development of an area within the City. TIF may only be used: 1) when there is evidence the development would not occur without public assistance; and 2) when the project area qualifies as a blighted, conservation, or economic development area.

 

State Incentives
Missouri’s State Incentives Support O’Fallon Business Relocations, Retentions and Expansions

Missouri offers 5060 tax credits and a variety of incentives geared to business attraction and expansion, workforce development and redevelopment, many of which are administered by the award-winning Missouri Department of Economic Development. The most commonly-used incentives for Missouri’s targeted industries are listed below.

Missouri Works Program

As the state’s number one tool for spurring business expansion and retention, this program provides withholdings or tax credits for facility maintenance, expansions and job creation.

Business Use Incentives for Large Scale Development (BUILD) Program

Companies embarking on major investments, expansions and job creation may qualify for low-interest loans provided by tax-exempt revenue bonds for the acquisition, construction and equipping of manufacturing facilities.

Brownfield Remediation Program

This important program provides financial benefits for the redevelopment and remediation of contaminated commercial and industrial sites, and calls for projects creating at least 10 jobs or retaining 25 jobs.

Business Facility Tax Credit Program

New businesses or existing Missouri companies looking to relocate or expand their headquarters may qualify for Missouri tax credits based on the number of new jobs and investment associated with their project.

Data Center Sales Exemption Program

To encourage the relocation and expansion of data centers, Missouri provides a limited-period exemption on sales and use taxes associated with building a new facility or expanding an existing facility.

Sales Tax Exemption for Manufacturers

Under this program, manufacturers can access a 4.225% state sales tax exemption on energy sources (electricity, coal, gas), machinery equipment, chemicals, materials, etc.

State Historic Tax Credits

This program helps developers give new life to historic buildings, enhancing our community’s architectural diversity, attractiveness and sense of place for residents and visitors alike.

Workforce Development

Workforce Development

Workforce Development

Targeted Industries

Targeted Industries

Targeted Industries

Transportation and Infrastructure

Transportation and Infrastructure

Transportation and Infrastructure

Community Partners

Community Partners

Community Partners