Fiscal Note - SB 0267 - Authorizes Atchison County To Adopt a Tourism Sales Tax
L.R. NO. 0714-01
BILL NO. SB 267
SUBJECT: Counties: Taxation, Revenue
TYPE: Original
DATE: February 7, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government* $0 $0 $0
*This proposal is permissive. Voter approval would be required before fiscal
impact would be realized .
FISCAL ANALYSIS
ASSUMPTION
Department of Revenue (DOR) officials stated they do not collect tourism
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.
Department of Economic Development (DED) - Division of Tourism (DOT) stated
this proposal is permissive and would have no fiscal impact to their
department. Officials stated the Atchison County Economic Development office
estimated revenues from the room tax to be $25,000 annually.
Oversight assumes this proposal is permissive and would have no state fiscal
impact. Voter approval is required before any city or county governing body
would be authorized to impose a tax.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
This proposal is permissive, however there would be fiscal impact if the
Atchison County governing body would seek and receive voter approval to levy
a special hotel tax. There would be income which would be earmarked solely
for funding a convention and visitor's bureau, and administrative cost due to
collection and additional record keeping. Annual income was estimated to be
$25,000.
FISCAL IMPACT - Small Business
If enacted, small businesses of the hotel/motel industry, located in Atchison
County, 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 adds Atchison County to those counties which are permitted to impose
a hotel/motel tax. The tax could not exceed 5 percent per occupied room per
night.
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-Division of Tourism
This Fiscal Note is not an official copy and should not be quoted or cited.