COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 0643-01
Bill No.: SB 228
Subject: Cities: Transient Guest Tax
Type: Original
Date: January 27, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Department of Revenue assume no fiscal impact from this proposal.
Officials of the Department of Economic Development- Division of Tourism assume no fiscal impact.
City of Warrenton did not respond.
Oversight assumes this proposal is enabling legislation. Certain cities would have no fiscal impact unless the voters would approve the imposition of the guest tax provided for in this proposal. Cities that would impose the tax would realize income for the purpose of promoting tourism. The City Collector or some official designated to collect the tax would have some additional duties related to administration and collection of the tax. Because this proposal does not mandate the imposition of the tax, fiscal impact will be shown as $0.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
This proposal as written would have no fiscal impact on small businesses. If a transient guest tax were adopted by the voters of the city of Warrenton, small businesses of the hotel/motel industry could expect to be fiscally impacted to the extent that they may incur additional administrative duties and costs related to collection of the tax.
DESCRIPTION
This act would enable the City of Warrenton to levy a room tax on hotels and motels of between
2% and 5% per night. The governing body of the city would select the tax rate within this range
and would submit the tax to its qualified voters for approval. The ballot language provided for
this tax is the ballot language provided in current law for hotel taxes of this type. The proceeds
from this tax would be dedicated to the promotion of tourism.
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
Mickey Wilson, CPA
Director
January 27, 2003