This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0035 - Revises Kansas City tourism and convention tax
SB 35 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0609-01

BILL NO.: SB 35

SUBJECT: Kansas City: Taxation and Revenue-Sales and Use

TYPE: Original

DATE: January 29, 1999


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 ($996,667) ($1,232,000) ($1,270,000)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Revenue (DOR) and Department of Economic Development (DED) state this proposal changes the distribution of the Kansas City convention center tax. This proposal would not fiscally impact their agencies.

Officials of the Kansas City Manager's Office state this proposal would diminish local government's ability to control the level of services rendered based on the needs of the local jurisdiction.

Oversight assumes that changing the distribution of the Kansas City convention center tax by 10% would increase revenues to the Convention and Visitors Bureau (a not for profit organization) and reduce revenues available to the City of Kansas City by 10%.

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.)
Loss to Local Government
Redistribution of Convention and
Tourism Tax ($996,667) ($1,232,000) ($1,270,000)
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

Current law requires at least 30% of the proceeds from the Kansas City convention and tourism tax to be paid to a local non-profit organization which promotes the city as a convention and tourist center. This bill increases the payment to at least 40% of tax revenues.

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

Kansas City Manager's Office







Jeanne Jarrett, CPA

Director

January 29, 1999