SB 0229 - Fiscal Note

Fiscal Note - SB 0229 - Allows certain cities to impose a tourism tax

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0606-03

BILL NO.: SB 229

SUBJECT: Tourism-Motels and Hotels

TYPE: Original

DATE: January 22, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government*	$0	$0	$0

*This proposal is permissive. Voter approval would be required before fiscal impact would be realized.

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Economic Development (DED) and Department of Revenue (DOR) state that this proposal would have no fiscal impact to their agencies.

Oversight assumes that 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 tourism tax.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
This proposal is permissive, however there would be fiscal impact if the county seats of certain counties governing bodies would seek and receive voter approval to levy a tourism tax. There would be income which would be earmarked for programs to promote conventions and tourism, and administrative cost due to collection and additional record keeping.
FISCAL IMPACT - Small Business
If this proposal were enacted, small businesses of the hotel/motel industry could be expected to be fiscally impacted to the extent that they may incur additional administrative costs related to collection of the tax.

DESCRIPTION

This act allows the cities of Lebanon, Poplar Bluff, Rolla, Waynesville, and West Plains to impose a tourism tax. The tax is imposed on transient guests (staying less than 30 days) on the charges for a sleeping room. The tax shall not be more than five percent per room per night. The act also gives the option of establishing a tourism committee for cities that adopt the tax. Adoption of the tax is by order of the city governing body, subject to majority voter

approval.

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

Jeanne Jarrett, CPA

Director

January 22, 1999