HB 1117 -- SALES TAX (Kreider)

This bill allows the governing body of any city, upon voter
approval, to impose by ordinance a sales tax of up to one-half
of 1% on all retail sales made within the city for the sole
purpose of providing law enforcement services to the city.  All
sales taxes collected by the Director of Revenue on behalf of a
city, less 1% for cost of collection and for payment of premiums
for surety bonds, will be deposited in a special trust fund to
be known as the "City Law Enforcement Sales Tax Trust Fund."
The director will by the 10th day of each month distribute all
moneys deposited to the cities that levied the tax.  The bill
also contains ballot language authorizing cities to finance and
form regional jail districts.

FISCAL NOTE:  Income to General Revenue Fund is unknown for FY
1999, 2000, and 2001.

HB 1117 -- SALES TAX

CO-SPONSORS:  Kreider, Luetkenhaus

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Local Government and Related Matters by a vote of 16 to 0.

This bill allows the governing body of any city, upon voter
approval, to impose by ordinance a sales tax of up to one-half
of 1% on all retail sales made within the city for the sole
purpose of providing law enforcement services to the city.  All
sales taxes collected by the Director of Revenue on behalf of a
city, less 1% for cost of collection and for payment of premiums
for surety bonds, will be deposited in a special trust fund to
be known as the "City Law Enforcement Sales Tax Trust Fund."
The director will by the 10th day of each month distribute all
moneys deposited to the cities that levied the tax.  The bill
also contains ballot language authorizing cities to finance and
form regional jail districts.

FISCAL NOTE:  Income to General Revenue Fund is unknown for FY
1999, 2000, and 2001.

PROPONENTS:  Supporters say this bill would help small cities
provide law enforcement.  Any taxes would go to a vote of the
people.

Testifying for the bill were Representative Kreider; and the
Missouri Municipal League.

OPPONENTS:  There was no opposition voiced to the committee.

Steve Bauer, Legislative Analyst

                            Corrected



HB 1117 -- Sales Tax

Co-Sponsors:  Kreider, Luetkenhaus

This bill allows the governing body of any city, upon voter
approval, to impose by ordinance a sales tax of up to one-half
of 1% on all retail sales made within the city for the sole
purpose of providing law enforcement services to the city.  All
sales taxes collected by the Director of Revenue on behalf of a
city, less 1% for cost of collection and for payment of premiums
for surety bonds, will be deposited in a special trust fund to
be known as the "City Law Enforcement Sales Tax Trust Fund."
The director will by the 10th day of each month distribute all
moneys deposited to the cities that levied the tax.  The bill
also contains ballot language authorizing cities to finance and
form regional jail districts.