Mo. state auditor calls tax districts ‘outrageous,’ urges lawmakers to change laws governing them

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KANSAS CITY, Mo. -- Missouri State Auditor Nicole Galloway calls a special taxing district, increasingly common in the state, "outrageous" and "rigged."

“It’s taxation without representation,” Galloway said.

Galloway’s recent audit takes specific aim at Transportation Development Districts, or TDD’s. It’s a common arrangement whereby a property owner, or developer, in a busy retail or commercial area can add up to 1-percent in extra sales tax.

“And they can do it without a vote or any input from the public,” Galloway said.

Galloway is pressuring state lawmakers to change the laws governing taxing districts.

“In total, we found the taxpayers are on the hook for about $1 billion in TDD project cost that they didn't even know existed,” Galloway said.

“I guarantee you that most people and most residents within the state have shopped within the bounds of a TDD district. Paid that sales tax and had no idea they were doing so.”

The state auditor’s website has a county-by-county map where you can if there are transportation development districts near you, click here for that information.

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