Neosho Community Improvement District Billed for Thousands of Dollars

NEOSHO, MO.--- Neosho city leaders bill a community improvement district, or CID, for $150,000. City staff recently discovered the Neosho CID should have been giving portions of the collections from their one cent sales tax to the city. That's according to state guidelines.

Council members say the city's tax increment financing district falls within the boundaries of the CID, entitling the city to half of the tax income made inside that area. The majority of the tax dollars are generated at the Big Spring Plaza strip mall, next to the Neosho Wal-Mart. The CID has been collecting taxes since 2006 and city leaders say neither parties were aware of the state guidelines.

"Hopefully, over a gentleman's agreement they will do what they're required to do and pay the money. If not, we have the option to do a number of things including going to court and ask a judge to be involved, but right now it appears they understand that they are obligated to pay it. The question is how they're going to find the funds to do that," said Richard Davidson, Neosho Mayor.

Neosho city leaders are hopeful the CID will determine how they're going to pay the $150,000 bill within the next few months.

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