L.R. NO.  1964-01
BILL NO.  SB 4
SUBJECT:  Taxation and Revenue: Sales, Use, and Tourism
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
City of Branson   $0 to $5,000,000   $0 to $10,000,000 $0 to $10,000,000

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

                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Economic Development (DED), Division of
Tourism (DOT), assume no fiscal impact to the department, however, officials
stated there would be local fiscal impact to certain municipalities.

Tourism officials state that based on information obtained from officials at
Branson, Missouri, revenues estimated to be derived from a 4% tax on lodging
and admission tickets for private tourism attractions within the City of
Branson and a 2% tax for food and drinks sold for consumption on the premises
would yield at least $10,000,000 annually.  Officials assume the tax for the
first year, which they estimated for the period beginning 1-1-98 and ending
on  6-30-98, to be $5,000,000.

Officials of the Department of Revenue (DOR) stated this proposal does not
require collection of the tourism tax by DOR, therefore there would be no
fiscal impact.

Officials of the City of Branson stated that the city would have fiscal
impact.  Officials stated that from January 1994 through December of 1997
Branson collected a Hotel/Motel tourism tax at a rate of 2% and a 1/2% tax on
food and drinks sold in restaurants which produced 4.4 million in FY95 and
4.8 million in FY96.  City officials estimate that a 4% tax rate on lodging
and a 1/2% tax rate on food and drinks would produce at least $10,000,000
annually.

Oversight, for the purposes of this fiscal note, will show fiscal impact to
the city of Branson at $0 to $10,000,000 annually because it is not known if
the voters will approve the collection of a tourism tax or at what rate.
This proposal allows for the collection of a tax in an amount not to exceed
4% on lodging etc, and a 2% maximum on food and drinks.

Oversight assumes the City of Branson's Tourism Tax Trust Fund would realize
election costs, costs for the administration, collection, enforcement, and
operation of the tourism tax and the promotion of tourism and to retire
existing bonds, but has not stated those costs in this fiscal note.

Officials of the City of West Plains stated that the tourism tax was adopted
February 4, 1997.  Income realized from a 2% tax on lodging will generate
approximately $61,000 annually. Officials assume no fiscal impact from this
proposal.

Oversight assumes the changes to Section 67.1150 which authorizes St. Charles
County to form a Convention and Sports Facility Authority, would be a
technical change and has no fiscal impact.

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

                                      $0        $0        $0

FISCAL IMPACT - Local Government FY 1998   FY 1999   FY 2000
                                 (6 Mo.)

CITY OF BRANSON

Income to Tourism Tax Trust Fund
  (From Tourism Tax)              $0 to      $0 to     $0 to
                             $5,000,000 $10,000,000 $10,000,000

FISCAL IMPACT - Small Business

Small businesses would be expected to incur the cost of collecting and
accounting for tourism tax proceeds.

DESCRIPTION

This act revises provisions of Missouri law relating to certain local taxes,
largely in response to a Missouri Supreme Court decision, Tillis v. City of
Branson, in which the Court determined that certain taxes authorized by law
were written in such a way as to violate the unconstitutional prohibition
against special legislation.

St. Charles County is currently authorized to form a County Convention and
Sports Facilities Authority.  This act modifies the description of the county
to conform to the provisions of Tillis.

The provisions authorizing a municipal tourism tax in Branson are revised to
meet the Court's requirements, to authorize a new vote on the issue, and to
allow tax revenues to be used to pay bonds which had been authorized by the
voters under the previous municipal tourism tax.

The act also authorizes the voters of the City of West Plains to adopt a
municipal tourism tax.  The act contains an emergency clause.

This proposal has 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
Department of Revenue
City of Branson
City of West Plains