Fiscal Note - SB 0353 - Authorizes a Tourism Sales Tax For the City of Boonville
L.R. NO. 1184-02
BILL NO. SB 353 with HCA #1
SUBJECT: Cities, Towns, and Villages: Tourism
TYPE: Original
DATE: April 18, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government* $0 $0 $0
*This proposal is permissive. Voter approval would be required before fiscal
impact would be realized.
FISCAL ANALYSIS
ASSUMPTION
Section 67.1000:
Department of Revenue (DOR) officials stated they do not collect tourism
taxes at the present time due to the administrative expense of collecting a
special tax on a special activity or item. Officials assume that no
agreement would be established to collect the tax, therefore, there would be
no administrative impact.
Department of Economic Development (DED) - Division of Tourism (DOT) stated
this proposal is permissive and would have no fiscal impact to their
department. Officials stated the Atchison County Economic Development office
estimated revenues from the room tax to be $25,000 annually.
Section 67.1360
Officials from the Department of Economic Development (DED) - Division of
Tourism (DOT) stated that this proposal would have no fiscal impact to their
division. Officials stated that this proposal is permissive and if adopted
by the City of Boonville would generate approximately $38,000 annually.
Officials from the Department of Revenue (DOR) assume there would be no
agreement established with any city to collect this special tax at a special
rate on a select group of charges due to the administrative costs associated
with administration of this type of local tax at the state level. Officials
assume this proposal would apply to the city of Boonville.
Oversight assumes this proposal is permissive and would have no state fiscal
impact. Voter approval is required before any city or county governing body
would be authorized to impose a tax.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
This proposal is permissive, however there would be fiscal impact if Atchison
County or the city of Boonville's governing body would seek and receive voter
approval to levy a special tourism tax. There would be income which would be
earmarked solely for promoting tourism, and administrative cost due to
collection and additional record keeping. Annual income for the city of
Boonville is estimated to be $38,000, and $25,000 for Atchison County.
FISCAL IMPACT - Small Business
If enacted, small businesses of the hotel/motel industry, and other
businesses specified in this proposal would be expected to be fiscally
impacted to the extent that they may incur additional administrative costs
related to collection of the tax.
DESCRIPTION
Section 67.1000 of this proposal adds Atchison County to those counties which
are permitted to impose a hotel/motel tax. The tax could not exceed 5
percent per occupied room per night.
Section 67.1360 authorizes the city of Boonville, with voter approval, to
impose a tourism tax of between two and five percent on lodging. It also
creates a Tourism Commission which would administer the funds generated by
the tax to promote tourism in the City.
The act contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Economic Development-Division of Tourism
Department of Revenue
City of Boonville - contributed information to the Division of Tourism
This Fiscal Note is not an official copy and should not be quoted or cited.