CCS SCS HCS HB 139 -- TOURISM TAX; INCOME TAX; SALES AND USE TAX

This bill allows the governing body of any city or county, other
than a city or county already imposing such a tax, having more
than 350 hotel and motel rooms inside the city or county, or
Hickory County, upon voter approval, to impose a room tax of not
more than 5% on all transient guests of hotels or motels.
Platte County will be allowed, upon voter approval, to impose a
room tax of one-fourth of 1% on all transient guests of hotels
or motels.  The proceeds from these taxes will be used by the
city or county solely for the promotion of tourism.

The governing body of any county containing part of a Corps of
Engineers lake and of Christian and Greene counties, with voter
approval, may impose a one-fourth of 1% sales tax on all retail
sales in the county for the purpose of providing improved
treatment of wastewater and water pollution abatement.  Such
counties in conjunction with the imposition of a sales tax may
have the option to issue bonds in order to fund the
establishment, repair, or expansion of wastewater treatment
facilities.  Any sales tax imposed will not be authorized for a
period of more than 5 years unless the tax is imposed in
conjunction with the issuance of bonds.  In such case a sales
tax will expire upon full repayment of all bonds issued.

Small businesses will be allowed an income tax credit in an
amount equal to any amount paid by a small business to the
United States Small Business Administration as a guaranty fee
pursuant to obtaining Small Business Administration guaranteed
financing and to programs administered by the United States
Department of Agriculture for rural development or farm services
agencies.

Any equipment purchased by a federally licensed commercial or
public broadcast station is exempted from state and local sales
and use tax when the equipment is required by federal mandate
and the technological change that results from the mandate.

Under current law, businesses which have annual purchases
subject to state and local sales and use tax may remit the taxes
directly through agreements with the Department of Revenue.  The
businesses under the agreements are not allowed to retain 2% of
the taxes for administrative purposes as is normally allowed for
retailers.  The bill allows the businesses subject to direct pay
agreements to retain 2% of the tax they remit.

The bill also expands the definition of storage to include
property stored in the state for subsequent use solely outside
the state.  Under current law, storage of tangible personal
property is exempt from state and local use tax.

The bill contains an emergency clause for the hotel and motel
room tax, small business tax credits, and sales tax and bonding
portions of the bill.

HCS HB 139 -- TOURISM TAX (Long)

This substitute allows the governing body of any city or county,
other than a city or county already imposing such a tax, having
more than 350 hotel and motel rooms inside the city or county,
upon voter approval, to impose a room tax of not more than 5% on
all transient guests of hotels or motels.  This tax cannot be
imposed in any city or county where another tax on the charges
for all sleeping rooms paid by the transient guest is already
imposed.

The proceeds from this tax will be used by the city or county
solely for the promotion of tourism or for funding a convention
and visitor bureau.

The governing body of any city or county, not already imposing a
sales tax, is allowed, by majority vote, to impose a sales tax
for the promotion of tourism.  The tax rate cannot exceed 2% on
the receipts from the sale at retail of goods and services.  The
tax will be collected by the Department of Revenue with 1% of
the collections retained by the director to offset the cost of
collection.  The proceeds collected by the director will be
deposited into a newly created special trust fund to be known as
the Advertising and Tourism Sales Tax Trust Fund.

The substitute spells out ballot language and procedures.  It
contains an emergency clause.

FISCAL NOTE:  Estimated Net Partial Effect to General Revenue
Fund of $0 for FY 2000, FY 2001, and FY 2002.  Partial effect to
GR Fund does not include income from the 1% collection fee.

HCS HB 139 -- TOURISM TAX

SPONSOR:  Overschmidt (Long)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tourism,
Recreation, and Culture Affairs by a vote of 18 to 0.

This substitute allows the governing body of any city or county
having more than 350 hotel and motel rooms inside the city or
county, upon voter approval, to impose a room tax of not more
than 5% on all transient guests of hotels or motels.  In the
event this tax and another tax on the charges for sleeping rooms
are being imposed simultaneously, the aggregate total of all
such taxes cannot exceed 5% per occupied room per night.

The proceeds from this tax will be used by the city or county
solely for the promotion of tourism or for funding a convention
and visitor bureau.

The governing body of any city or county, by majority vote, is
also allowed to impose a sales tax for the promotion of
tourism.  The tax rate cannot exceed 2% on the receipts from the
sale at retail of goods and services.  The tax will be collected
by the Department of Revenue with 1% of the collections retained
by the director to offset the cost of collection.  The proceeds
collected by the director will be deposited into a newly created
special trust fund to be known as the Advertising and Tourism
Sales Tax Trust Fund.

The substitute spells out the ballot language and procedure.

FISCAL NOTE:  Estimated Net Partial Effect to General Revenue
Fund of $0 in FY 2000, FY 2001, and FY 2002.  The partial effect
to General Revenue Fund does not include income from the 1%
collection fee.

PROPONENTS:  Supporters say that such taxes will better help
fund tourism.  Supporters also say the process is changed so the
taxes can be imposed with voter approval and will not require
getting statutory approval each time.

Testifying for the bill were Representative Long; and Missouri
Hotel and Motel Association.

OPPONENTS:  There was no opposition voiced to the committee.

Robert Triplett, Legislative Analyst

HB 139 -- Tourism Tax

Sponsor:  Long

This bill allows the governing body of any city or county having
more than 500 hotel and motel rooms inside such city or county,
upon voter approval, to impose a room tax of not more than 5% on
all transient guests of hotels or motels.  The proceeds from
this tax will be used by the city or county solely for the
promotion of tourism or for funding a convention and visitor
bureau.

This bill also allows the governing body of any city or county,
by majority vote, to impose a sales tax for the promotion of
tourism.  The tax rate cannot exceed 2% on the receipts from the
sale at retail of goods and services.  The tax will be collected
by the Department of Revenue with 1% of the collections retained
by the director to offset the cost of collection.  The proceeds
collected by the director will be deposited into a newly created
special trust fund to be known as the "Advertising and Tourism
Sales Tax Trust Fund."

This bill spells out the ballot language and procedure.