COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 3572-01
Bill No.: SB 981
Subject: Taxation - Cities, Towns and Villages; Transient Guest Tax
Type: Original
Date: February 2, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 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* | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
*Only cities/counties that have passed a local transient guest tax would see a loss from this proposal.
ASSUMPTION
Officials of the Department of Revenue (DOR) assume this legislation exempts any organization or their representatives who are exempt from sales/use tax, from paying a tourism tax when staying at a hotel/motel that is required to collect the tax. DOR assumes no fiscal impact from this proposal.
Officials of the Department of Economic Development- Division of Tourism (DED) assume this proposal would extend the charitable sales tax exemption to certain transient guest taxes. DED assumes no fiscal impact.
Oversight assumes only cities/counties that have imposed the transient guest tax would realize an unknown loss from this tax exemption. The fiscal impact will be shown as a negative unknown to certain cities/counties.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| CITIES/COUNTIES | |||
| Loss - Certain Cities & Counties* | |||
| Exemption from Transient Guest Tax | (Unknown) | (Unknown) | (Unknown) |
| TOTAL ESTIMATED NET EFFECT ON LOCAL GOVERNMENT |
(UNKNOWN) |
(UNKNOWN) |
(UNKNOWN) |
*Only cities/counties that have passed a local transient guest tax would see a loss from this proposal.
FISCAL IMPACT - Small Business
Small businesses could expect to be fiscally impacted to the extent that they may save on hotel/motel rooms.
DESCRIPTION
This proposal exempts hotel/motel sleeping rooms paid for by tax exempt entities from certain
local transient guest taxes.
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
February 2, 2004