SB 0226 - Fiscal Note

Fiscal Note - SB 0226 - Authorizes transient guest tax for fourth class cities in first class counties (Grain Valley)

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1198-01

BILL NO.: SB 226

SUBJECT: Cities, Towns and Villages; Revenue Dept.; Taxation-General

TYPE: Original

DATE: January 25, 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.

Officials of the City of Centralia stated that this proposal is permissive. If passed and voter approval was granted, this proposal could generate approximately $1,400 to $3,600 annually, less the election costs.

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 transient guest 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 governing body of a fourth class city in a first class county would seek and receive voter approval to levy a transient guest tax. There would be income which would be earmarked for the promotion of tourism.
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 authorizes fourth class cities in first class counties to submit to a vote a transient guest tax on charges paid for sleeping rooms at hotels, motels, and other locations. Proceeds of the tax are to be used solely for the promotion of tourism.

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

City of Centralia

Jeanne Jarrett, CPA

Director

January 25, 1999