COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 2769-03
Bill No.: SB 754
Subject: Exhibition Center & Recreational Facility District Act
Type: Original
Date: January 12, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | $0 or Unknown | $0 or Unknown | $0 or Unknown |
| Total Estimated
Net Effect on General Revenue Fund* |
$0 or Unknown | $0 or Unknown | $0 or Unknown |
* This proposal is permissive and requires voter approval.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government* | $0 | $0 | $0 |
* This proposal is permissive and requires voter approval.
ASSUMPTION
Officials of the Office of State Treasurer assume no fiscal impact.
Officials of the Department of Revenue assume no fiscal impact to the Department of Revenue.
Oversight assumes this proposal is permissive and would require voter approval before any fiscal impact would be realized by the state or the new district. If the voters would approve the creation of an Exhibition Center and Recreation Facility District and approve a sales tax to operate the district, the Department of Revenue would collect the sales tax and would withhold a 1% collection fee. The collection fee would be deposited in the State's General Revenue Fund.
Certain counties would realize the cost of an election, which is required to establish a district, and the district would realize income generated by the sales tax, and would have costs related to the operation and maintenance of the district. All amounts of income and costs are indeterminable.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| GENERAL REVENUE FUND | |||
| Income to Department of Revenue | |||
| 1% sales tax collection fee. | $0 or Unknown | $0 or Unknown | $0 or Unknown |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| EXHIBITION CENTER AND RECREATION FACILITY DISTRICT FUND | |||
| Income to Exhibition Center and Recreation Facility District | |||
| from voter approved sales tax | $0 or Unknown | $0 or Unknown | $0 or Unknown |
| Cost to Exhibition Center and Recreation Facility District | |||
| from operation and maintenance of the dist. | $0 or (Unknown) | $0 or (Unknown) | $0 or (Unknown) |
| ESTIMATED NET EFFECT TO EXHIBITION AND RECREATION FACILITY DISTRICT FUND * | $0 | $0 | $0 |
*Oversight assumes costs would not exceed income resulting in either an annual positive fund balance or a zero fund balance.
FISCAL IMPACT - Small Business
Small businesses within the newly created district would have to collect and remit additional sales taxes to the Department of Revenue.
DESCRIPTION
This act creates the "Exhibition Center & Recreation Facility District Act". The act enables citizens of Camden, Miller, and Morgan counties to petition to create an exhibition center & recreation facility district. At least fifty property owners in the county must sign the petition.
The petition must include the petitioners names, a description of the district's boundaries, and the name of the proposed district. Once the petition is filed, the governing body may approve a resolution to the create the district. Following a public hearing, the governing body may adopt an order establishing the proposed district.
A board of trustees is created to administer any district created and the expenditure of revenue that accompanies such district. The governing body of each county within the district shall appoint four residents from the portion of the county within the district to serve on the board. At least one member of the board shall be the owner of a business in the district and at least one member shall be the owner of a lodging facility in the district. Two of the members of the board must reside in the district. The board will have the power to have a seal, sue and be sued, enter into contracts or other agreements affecting the affairs of the district, to borrow money, to issue bonds, to acquire and dispose of real and personal property, to refund bonds without an election, to manage the affairs of the district, to hire agents, and to amend and adopt bylaws.
The district may submit to its voters a sales tax of up to one-quarter of one percent. The act includes ballot language to that effect. The act also includes the creation of a fund to receive such sales tax revenue and instructs the Director of the Department of Revenue to authorize disbursements to the district. The tax would be reduced automatically to a rate of one-tenth of
one percent after twenty-five years unless an extension is voted upon by the voters in the district. This act makes a technical change to delete the requirement that the Treasurer make the disbursements in the case of an overpayment, as such is not required for non-state funds.
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
Office of State Treasurer
Department of Revenue
NOT RESPONDING
Camden County Commission
Miller County Commission
Morgan County Commission
Mickey Wilson, CPA
Director
January 12, 2004