L.R. NO.  1881-03
BILL NO.  SB 5
SUBJECT:  Taxation and Revenue: Sales, Use, and Tourism Tax
TYPE:     Original
DATE:     September 9, 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       $243,781 to       $1,021,981 to     $1,071,180 to
                        $1,883,750          $7,909,850        $8,303,442

Numbers within parentheses:   (  ) indicate costs or losses
This fiscal note contains 4 pages.
                              FISCAL ANALYSIS

ASSUMPTION

Sections 67.1360, 67.1362 and 67.1364

In a similar proposal officials from the Department of Economic Development
(DED) - Division of Tourism  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.

In a similar proposal 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 governing body would be
authorized to impose a tax.

For purposes of this fiscal note Oversight has estimated the local impact for
three months of  FY 1998.

SECTION 67.1367

Oversight assumes this proposal is permissive. Voter approval is required
before any tax can be imposed and the revenue impact is unknown since it is
unknown at what rate the tax would be imposed and the amount of taxable sales
that would be subject to the tax. If a tax is imposed, it would be effective
the first day of the second calendar quarter following its adoption or a
later date if authorized by the governing body. For purposes of this fiscal
note Oversight has estimated a local impact with a sales tax rate range of
one-eight of one percent to one percent of the receipts from sales at retail
for the city of Jefferson. A 5% growth rate was assumed.

FISCAL IMPACT - State Government FY 1998   FY 1999   FY 2000
                                 (3 Mo.)

                                       0         0         0

FISCAL IMPACT - Local Government FY 1998   FY 1999   FY 2000

Income to Boonville
  Tourism Tax                     $9,500   $38,000   $38,000

Income to Local Tourism and Economic
  Development Sales Tax Fund    $234,281   $983,981 $1,033,180
                                      to        to        to
                              $1,874,250 $7,871,850 $8,265,442

ESTIMATED NET EFFECT TO
LOCAL GOVERNMENT                $243,781 $1,021,981 $1,071,180
                                      to        to        to
                              $1,883,750 $7,909,850 $8,303,442

FISCAL IMPACT - Small Business

Small businesses would be affected because small hotels, bars and restaurants
would be subject to a tax not levied on other types of businesses.

DESCRIPTION

This act authorizes the City of Boonville to impose a tourism tax of between
two and five percent on lodging.  It also creates a Tourism Commission which
will administer the funds generated by the tax to promote tourism in the
city.

A tourism tax of up to one percent is also authorized for the City of
Jefferson to fund the construction of civic and convention centers.  The tax
terminates upon the full payment of any related indebtedness.

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