• Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Show Me InstituteShow Me Institute
Show Me InstituteShow Me Institute
Support the Show-Me Institute
  • Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Economy / Taxes

Transportation Development Districts and Their Problems

By Maurice Harris on Jul 20, 2007

In the St. Louis Post-Dispatch, an article discusses a state audit that shows Transportation Development Districts (TDDs) are taking money without knowing where it is spent. TDDs are created to raise money, by means of a special sales tax, to fix roadways and other traffic needs in areas where new developments are being built. It sounds harmless enough, but the public is often kept in the dark on TDD operations:

The audits say taxes are raised without a public vote and little
government oversight. Montee said the previous audit recommended
various changes in the law to improve the process, but that legislators
have done little to address the concerns.

TDDs and their governing boards are created by court order, sometimes instigated by the petitions of developers. From there, the tax rate is approved by the board. Limited input from the public, or from officials outside the TDD process, has led to a lack of oversight on how the money is spent, and the actual amount of the tax:

She [Montee] found a variety of problems, such as competitive bids for the work
not being done properly or at all; districts charging a higher sales
tax rate than authorized; and a lack of documentation proving the right
amount was paid to reimburse developers for their costs. In one
instance, the developer’s costs were counted twice.

This audit follows up on one conducted by the auditor’s office on TDDs last year. Hopefully, these findings will spur changes in the law that increase accountability. Most importantly, there should be public input to make sure taxpayers are aware of the tax rates that affect them.

  • Share
  • Tweet
  • Share
  • Email
  • Print
About the author

Maurice Harris

More about this author >
    Footer Logo
    Support the Show-Me-Institute
    Showmeinstitute.org is brought to you by Show-Me Institute and Show-Me Opportunity.
    • Publications
    • Blog
    • Events
    • Donate
    • About
    • Contact

    Reprint permission for Show-Me Institute publications and commentaries is hereby granted, provided that proper credit is given to the author. We request, but do not require, that those who reprint our material notify us of publication for our records: [email protected]

    Mission Statement
    Advancing liberty with responsibility by promoting market solutions for Missouri public policy.

    © Copyright 2023 All Rights Reserved