SB 0820 - Fiscal Note

Fiscal Note - SB 0820 - Allows city of O'Fallon to submit proposal for local tourism tax to public vote

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3511-04

BILL NO. Truly Agreed To And Finally Passed SCS for SB 820

SUBJECT: Cities, Towns & Villages: Tourism

TYPE: Original

DATE: May 15, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government*	$0	$0	$0

*This proposal is permissive. Certain cities would have no fiscal impact unless the voters would approve the imposition of a tourism tax.

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Department of Revenue officials stated this proposal allows St. Peters and possibly O'Fallon to impose, with voter approval, a sleeping room tax. Officials assume the tax would be collected locally unless an agreement with DOR to collect and administer the tax would be established.

DOR officials assume no agreement would be established due to the costs involved with collecting a special tax on a special item for a local government. Officials assume no fiscal impact to the Department of Revenue.

Oversight assumes this proposal to be permissive. Affected local governments would have no fiscal impact unless voters would approve the imposition of a sleeping room tax. Cities that would impose the tax would have income from the tax and costs from the collection, administration of the tax, and the cost of promoting tourism.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
Income to Certain Cities
From Tourism Tax	Unknown	Unknown	Unknown
Cost to Certain Cities
Collection and Administration of
Tourism Tax, and promoting Tourism
Visitor Center	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT TO
CERTAIN CITIES*	$0	$0	$0
Oversight assumes that cost would not exceed income resulting with either a zero or positive fund balance. This proposal is permissive and would require voter approval.

FISCAL IMPACT - Small Business

Certain small business located within certain cities could be affected because of costs related to the collection, and administration of the tourism tax.

DESCRIPTION

This act would allow certain cities to submit a proposal for a local tourism tax to public vote.

This proposal 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 Revenue

Department of Economic Development - Division of Tourism

Jeanne Jarrett, CPA

Director

May 15, 1998