SECOND EXTRAORDINARY SESSION

SENATE BILL NO. 5

89TH GENERAL ASSEMBLY

Read 1st time September 8, 1997, and 1,000 copies ordered printed.

TERRY L. SPIELER, Secretary.

S1881.03I

AN ACT

To amend chapter 67, RSMo, relating to tourism tax, with an emergency clause.

Section A.  Chapter 67, RSMo, is amended by adding thereto four new sections, to be known as sections 67.1360, 67.1362, 67.1364 and 67.1367, to read as follows:

67.1360.  The governing body of a third class city with a population of more than six thousand and which is located in a county of the third class with a population between twelve and seventeen thousand may impose a tax on the charges for all sleeping rooms paid by the transient guests of hotels, motels, bed and breakfast inns and campgrounds and any docking facility which rents slips to recreational boats which are used by transients for sleeping, which shall be at least two percent, but not more than five percent per occupied room per night, except that such tax shall not become effective unless the governing body of the city submits to the voters of the city at a state general, primary or special election, a proposal to authorize the governing body of the city to impose a tax under the provisions of this section and section 67.1362.  The tax authorized by this section and section 67.1362 shall be in addition to any charge paid to the owner or operator and shall be in addition to any and all taxes imposed by law and the proceeds of such tax shall be used by the city solely for funding the promotion of tourism.  Such tax shall be stated separately from all other charges and taxes.

67.1362.  1.  The question shall be submitted in substantially the following form:

Shall the .......................... (City) levy a tax of ............ percent on each sleeping room or camp site occupied and rented by transient guests and any docking facility which rents slips to recreational boats which are used by transients for sleeping in the city, where the proceeds of which shall be expended for promotion of tourism?

Yes No

If a majority of the votes cast on the question by the qualified voters voting thereon are in favor of the question, then the tax shall become effective on the first day of the calendar quarter following the calendar quarter in which the election was held.  If a majority of the votes cast on the question by the qualified voters voting thereon are opposed to the question, then the governing body for the city shall have no power to impose the tax authorized by this section unless and until the governing body of the city again submits the question to the qualified voters of the city and such question is approved by a majority of the qualified voters voting on the question.

2.  On and after the effective date of any tax authorized under the provisions of this section and section 67.1360, the city may adopt one of the two following provisions for the collection and administration of the tax:

(1)  The city may adopt rules and regulations for the internal collection of such tax by the city officers usually responsible for collection and administration of city taxes; or

(2)  The city enter into an agreement with the director of revenue of the state of Missouri for the purpose of collecting the tax authorized in this section and section 67.1360.  In the event any city enters into an agreement with the director of revenue of the state of Missouri for the collection of the tax authorized in this section and section 67.1360, the director of revenue shall perform all functions incident to the administration, collection, enforcement and operation of such tax, and the director of revenue shall collect the additional tax authorized under the provisions of this section and section 67.1360.  The tax authorized under the provisions of this section and section 67.1360 shall be collected and reported upon such forms and under such administrative rules and regulations as may be prescribed by the director of revenue, and the director of revenue shall retain an amount not to exceed one percent for cost of collection.

3.  If a tax is imposed by a city under this section and section 67.1360, the city may collect a penalty of one percent and interest not to exceed two percent per month on unpaid taxes which shall be considered delinquent thirty days after the last day of each quarter.

67.1364.  1.  Upon adoption of the tourism sales tax, there shall be established a tourism commission to consist of five members appointed by the governing body of the city.  Of these five members, one will be a representative of the hotel and motel industry and two shall be active in the tourism industry; the remaining members of the commission will be members of local general business interests in the city.  One member of the city council shall serve as liaison in a non-voting capacity.  All members shall be a resident of the city.  Members of the tourism commission will be appointed for a term of three years; but, of the members first appointed, one shall be appointed for a term of one year, two shall be appointed for a term of two years, and two shall be appointed for a term of three years.  Members of the commission may serve no more than two consecutive terms.  The members will serve without compensation.

2.  The revenue received from the tax shall be deposited in a special fund and used solely to promote tourism.  The commission shall administer the moneys within the limits of the budget approved by the city council.

67.1367.  1.  The governing body of a city with a population of at least thirty-five thousand inhabitants and at least part of which is included in a county of the first classification with a population between sixty-two thousand and seventy-five thousand inhabitants is hereby authorized to impose, by ordinance or order, a sales tax on all retail sales which are subject to taxation under the provisions of sections 144.010 to 144.525, RSMo, for the purpose of funding tourism and economic development.  For the purposes of this section, the term "tourism and economic development" shall mean the funding of the construction of civic and convention centers, as determined by the city imposing the tax.  The tax authorized by this section shall be in addition to any and all other sales taxes allowed by law.  The ordinance or order shall become effective after the governing body of the city shall submit to the voters of that city a proposal to authorize the tax.

2.  The ballot of submission shall contain, but need not be limited to, the following language:

Shall the city of ................. (name of city) impose a sales tax of ............ (inset amount) for the purpose of funding tourism and economic development for the construction of civic and convention centers?

YES NO

If you are in favor of the question, place an "X" in the box opposite "Yes".  If you are opposed to the question, place an "X" in the box opposite "No".

If a majority of the votes cast on the proposal by the qualified voters voting thereon are in favor of the proposal, then the ordinance or order shall be in effect, beginning the first day of the second calendar quarter following its adoption or a later date if authorized by the governing body.  If a majority of the votes cast by the qualified voters voting are opposed to the proposal, then the governing body of the city shall have no power to impose the sales tax authorized in this section unless and until the governing body of the city shall again have submitted another such proposal and the proposal is approved by the requisite majority of the qualified voters voting thereon.  However, in no event shall a proposal pursuant to this section be submitted to the voters sooner than twelve months from the date of the last proposal submitted pursuant to this section.

3.  After the effective date of any tax imposed pursuant to the provisions of this section, the director of revenue shall perform all functions incident to the administration, collection, enforcement, and operation of the tax in the same manner as provided in sections 94.500 to 94.550, RSMo, and the director of revenue shall collect in addition to the sales tax for the state of Missouri the additional tax authorized pursuant to the authority of this section.  The tax imposed pursuant to this section and the tax imposed under the sales tax law of the state Missouri shall be collected together and reported upon such forms and under such administrative rules and regulations as may be prescribed by the director of revenue.  Except as modified in this section, all provisions of sections 32.085 and 32.087, RSMo, shall apply to the tax imposed pursuant to this section.

4.  The sales tax may be approved at a rate of one-eighth of one percent, one-fourth of one percent, three-eights of one percent, one-half of one percent, three-fourths of one percent or one percent of the receipts from the sale at retail of all tangible personal property and taxable services at retail within any city adopting such tax, if such property and services are subject to taxation by the state of Missouri pursuant to the provisions of sections 144.010 to 144.525, RSMo.

5.  All revenue generated from the tax authorized pursuant to the provisions of this section shall be deposited into the "Local Tourism and Economic Development Sales Tax Fund", which is hereby created in the state treasury.  The fund moneys shall be distributed to the city from which the revenue was generated for the sole purpose of funding tourism and economic development, as that term is defined in this section.  The tax authorized by this section is abolished or terminated when the original indebtedness for the civic and convention center is fully paid.

Section B.  Because of the need to raise revenue for the promotion of tourism this act is deemed necessary for the immediate preservation of the public health, welfare, peace and safety, and is hereby declared to be an emergency act within the meaning of the constitution, and this act shall be in full force and effect upon its passage and approval.