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 0035 - Revises Kansas City tourism and convention tax
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0609-01
BILL NO.: SB 35
SUBJECT: Kansas City: Taxation and Revenue-Sales and Use
TYPE: Original
DATE: January 29, 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 | ($996,667) | ($1,232,000) | ($1,270,000) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) and Department of Economic Development (DED) state this proposal changes the distribution of the Kansas City convention center tax. This proposal would not fiscally impact their agencies.
Officials of the Kansas City Manager's Office state this proposal would diminish local government's ability to control the level of services rendered based on the needs of the local jurisdiction.
Oversight assumes that changing the distribution of the Kansas City convention center tax by 10% would increase revenues to the Convention and Visitors Bureau (a not for profit organization) and reduce revenues available to the City of Kansas City by 10%.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| Loss to Local Government | |||
| Redistribution of Convention and | |||
| Tourism Tax | ($996,667) | ($1,232,000) | ($1,270,000) |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
Current law requires at least 30% of the proceeds from the Kansas City convention and tourism tax to be paid to a local non-profit organization which promotes the city as a convention and tourist center. This bill increases the payment to at least 40% of tax revenues.
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
Kansas City Manager's Office
Jeanne Jarrett, CPA
Director
January 29, 1999