This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0240 - Authorizes certain cities to submit issue of tourism tax to voters
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1201-04
BILL NO.: Truly Agreed to and Finally Passed HCS for SCS for SB's 240, 226 & 229
SUBJECT: Economic Development; Taxation and Revenue-General; Tourism
TYPE: Original
DATE: April 26, 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* | Unknown | Unknown | Unknown |
*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 State Tax Commission state that this proposal would have no fiscal impact to their agencies.
In a similar proposal Department of Revenue (DOR) officials stated they do not collect transient guest taxes at the present time due to the administrative expense of collecting a special tax on a special activity or item. Officials assume that no agreement would be established to collect the tax, therefore, there would be no administrative impact.
Officials of the City of Independence state this proposal would, upon voter approval, enable the City of Independence to replace an existing 5% License Tax to increase and benefit tourism. This proposal would enable the City of Independence to increase the tax rate up to 7%. This 2% increase would generate additional revenue of approximately $172,000 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 |
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| This proposal is permissive, however there would be fiscal impact if the governing body of certain cities 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 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 authorizes certain cities 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. The act 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
State Tax Commission
Department of Revenue
Department of Economic Development
City of Independence
Jeanne Jarrett, CPA
Director
April 26, 1999