Missouri, like many states in the USA, actually operates across two different time zones, but when people ask “What Time Zone Is Missouri is in?”, they are usually interested in the most common time zone. However, in the context of Missouri state law, “TIME Zone” takes on a completely different and specific meaning. This article will clarify both aspects, focusing on the legal definition of TIME Zones within Missouri, as defined by the “Targeted Industrial Manufacturing Enhancement Zones Act”.
Missouri’s Geographical Time Zones
Geographically, Missouri is primarily located in the Central Time Zone (CT). Most of the state, including major cities like St. Louis, Kansas City, and the state capital Jefferson City, observes Central Time. Central Time is six hours behind Coordinated Universal Time (UTC-6) during standard time and five hours behind during Daylight Saving Time (UTC-5).
However, there’s a small portion of Missouri that lies in the Eastern Time Zone (ET). This area is in the southeastern part of the state, bordering states like Kentucky and Tennessee which are in the Eastern Time Zone. This part of Missouri, though less populated, does observe Eastern Time, which is five hours behind UTC (UTC-5) during standard time and four hours behind during Daylight Saving Time (UTC-4).
Therefore, when considering the general question, most of Missouri is in the Central Time Zone, but it’s important to be aware of the southeastern region’s observance of Eastern Time. For the vast majority of residents and visitors, Central Time is the relevant time zone in Missouri.
TIME Zones in Missouri Law: Targeted Industrial Manufacturing Enhancement Zones Act
Now, let’s delve into the more specialized meaning of “TIME Zone” as defined in Missouri state law. The term “TIME Zone” here is not related to geographical time but is an acronym standing for Targeted Industrial Manufacturing Enhancement Zones. This is defined under the Targeted Industrial Manufacturing Enhancement Zones Act, specifically section 620.2250 of Missouri Revised Statutes.
This act is designed to promote economic development within the state by allowing for the creation of special zones, termed “TIME Zones”, by contiguous or overlapping political subdivisions. These zones are established to facilitate infrastructure projects aimed at regional economic growth.
Defining Key Terms within the TIME Zones Act
To understand TIME Zones in this legal context, it’s crucial to understand some key definitions provided within the act:
- TIME Zone: As mentioned, this refers to an area identified by local ordinances or resolutions. These zones are designated for development or redevelopment purposes, focusing on infrastructure and building improvements to boost economic activity.
- Zone Board: This is the governing body of a TIME Zone, composed of seven members selected from the political subdivisions that created the zone. These boards oversee the operations and development within the TIME Zone.
- New Job: This refers to full-time employment positions located within the project facility that exceed the pre-existing employment levels, minus any job losses in related facilities. Importantly, jobs created before an agreement is finalized or jobs relocated from elsewhere within Missouri are not considered “new jobs”. There are specific criteria about where an employee spends their time and how they are paid to be considered “located at a facility”.
- Related Facility: This refers to a facility operated by the same or a related company before the TIME Zone was established, and its operations are directly linked to the new facility within the TIME Zone.
Establishing a TIME Zone: Procedure and Requirements
The process to establish a TIME Zone involves several steps and requires collaboration between political subdivisions:
- Proposal by Political Subdivisions: At least two contiguous or overlapping political subdivisions (like towns, cities, or counties) must propose an ordinance or resolution to create a TIME Zone.
- Ordinance or Resolution Details: This proposal must include:
- Names of the participating political subdivisions.
- Nature of proposed infrastructure improvements.
- Estimated costs for these improvements.
- Boundaries of the proposed TIME Zone.
- Estimated number of new jobs expected to be created.
- Public Hearing: Each governing body involved must hold a public hearing to discuss the TIME Zone creation and proposed improvements, allowing for public input and objections. Amendments to the proposals can be made based on feedback.
- Zone Board Governance: Once the ordinances or resolutions are passed, a Zone Board is formed to govern the TIME Zone. This board can further expand or contract the TIME Zone through ordinances or resolutions, following another public hearing.
Agreements and Incentives for TIME Zones
A key incentive for establishing TIME Zones is the potential to retain a portion of state withholding taxes to fund improvements within the zone. However, this is contingent on entering into an agreement with the Missouri Department of Economic Development. This agreement is crucial and must include several key elements:
- Estimated new jobs to be created.
- Estimated average wage of these new jobs.
- Estimated net fiscal impact of the new jobs.
- Estimated costs of the proposed infrastructure improvements.
- Estimated amount of withholding tax to be retained over the agreement period.
- Documentation of the board’s establishment and membership.
The Department of Economic Development has specific job creation requirements based on the population size of the proposed TIME Zone area. For instance, zones in less populated areas need to commit to fewer new jobs compared to zones in more densely populated areas. All new jobs must meet or exceed 90% of the county average wage.
These agreements are typically for a term not exceeding ten years, but can be renewed upon application and approval, based on factors like job creation performance, progress on improvements, and other criteria set by the department. Failure to meet job creation targets can lead to recapture of retained withholding taxes.
Funding and Reporting Mechanisms
The financial aspect of TIME Zones is managed through the TIME Zone Fund, a dedicated fund in the state treasury. This fund receives 25% of the state tax withholdings from new jobs within the TIME Zone, after an agreement is in place and development has started. These funds are specifically for expanding, developing, and redeveloping TIME Zones, and can cover various expenses like managerial, engineering, legal, research, promotion, and planning costs.
Zone Boards must also adhere to reporting requirements, submitting an annual report by December 31st each year to the Department and the General Assembly. This report details:
- Locations of established TIME Zones.
- Number of new jobs created within these zones.
- Average wage of new jobs.
- Improvements funded by TIME Zone funds.
- Amount of funding used for each improvement and total expenditure.
- Amount of withholding tax retained from new jobs within the zones.
Limitations and Sunset Clause
It’s important to note some restrictions and timelines associated with TIME Zones:
- TIME Zones cannot overlap with Advanced Industrial Manufacturing Zones.
- The total withholding taxes retained by all TIME Zones statewide cannot exceed $5 million per fiscal year.
- No new TIME Zones can be established after August 28, 2025. However, zones created before this date can continue to exist until debts incurred for improvements are retired. No new debts can be authorized using TIME zone revenue after this date.
Conclusion: Understanding TIME Zones in Missouri
In summary, when someone asks “what time zone is Missouri in?”, the immediate answer relates to geographical time, with most of the state in the Central Time Zone and a small southeastern portion in the Eastern Time Zone.
However, within the context of Missouri state law and economic development, “TIME Zone” refers to Targeted Industrial Manufacturing Enhancement Zones. These are designated areas created by political subdivisions to promote economic growth through infrastructure improvements, supported by a mechanism to retain state withholding taxes from new jobs created within these zones. The TIME Zones Act is a strategic tool for Missouri to encourage industrial and manufacturing development, with specific procedures, requirements, and limitations outlined in section 620.2250 of the Missouri Revised Statutes. Understanding both the geographical and legal context of “time zone” is essential when discussing Missouri.
