COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 4789-02
Bill No.: Perfected SB 1391
Subject: Cities: Transient Guest Tax
Type: Original
Date: March 30, 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* | $0 | $0 | $0 |
*Oversight assumes annual cost would not exceed annual income resulting in either a $0 or a positive annual fund balance. For purposes of this fiscal note, Oversight assumes zero fiscal impact.
ASSUMPTION
Officials of the Department of Economic Development, Division of Tourism assume no fiscal impact.
In response to a similar proposal, officials of the City of Marston assumed the guest tax would generate an unknown amount of revenue, if passed by the voters. Officials assume revenue could only be spent on the promotion of tourism.
Officials from the Cities of Matthews and Steele did not respond to our fiscal note request.
| 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 OF MARSTON, MATTHEWS & STEELE | |||
| Income to Tourism Fund | Unknown | Unknown | Unknown |
| Cost to cities for promotion of tourism and infrastructure improvements |
(Unknown) |
(Unknown) |
(Unknown) |
| ESTIMATED NET EFFECT TO LOCAL GOVERNMENT* |
$0 |
$0 |
$0 |
*Oversight assumes annual cost would not exceed annual income resulting in either a $0 or a positive annual fund balance. For purposes of this fiscal note, Oversight assumes zero fiscal impact.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal allows the cities of Marston, Steele and Matthews to impose, upon voter approval, a room tax of not more than 5% per night. This tax will be in addition to any other tax authorized by law and will be used for tourism purposes and infrastructure improvements.
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 Economic Development - Tourism
City of Marston
NOT RESPONDING: Cities of Matthews and Steele
Mickey Wilson, CPA
Director
March 30, 2004