COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 4789-04
Bill No.: HCS for SB 1391
Subject: Taxation and Revenue - Sales and Use; Taxation and Revenue - General; Tourism; Cities, Towns, and Villages
Type: Original
Date: May 3, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | $0 to less than ($230,330) | $0 to less than ($136,835) | $0 to less than ($140,303) |
| Total Estimated
Net Effect on General Revenue Fund |
$0 to less than ($230,330) | $0 to less than ($136,835) | $0 to less than ($140,303) |
| 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 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 |
*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 from the Department of Revenue (DOR) - Division of Taxation assume that the language in Section 94.838 states that it will administer the transient guest tax for the Village of Lamar Heights. DOR officials stated that their agency is currently not set up to handle such taxes, and this proposal will require 2,768 hours of programming to establish a system that can handle such new taxes.
DOR officials further stated that to administer the new tax, three Tax Processing Technician I FTE and one Office Support Assistant FTE would be required, with the corresponding fringe benefits and office equipment. Oversight assumes a very light volume of processing and administration to be required by this tax, thus fewer personnel may be required to administer it.
Oversight further assumes the tax provisions outlined in Section 94.838 would not be effective unless enacted the governing body of the Village of Lamar Heights and approved in an election by the voters of the municipality. Therefore, the fiscal impact of this legislation would range from $0 if not approved by the municipality and its voters up to the assumptions made by DOR. Oversight further assumes that DOR would collect an administrative fee from the Village of
ASSUMPTION (continued)
Lamar Heights to administer the tax if it was approved, but that such fee income would not exceed costs.
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. Oversight was not able to contact officials from the Village of Lamar Heights.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| GENERAL REVENUE FUND | |||
| Income - Department of Revenue | $0 to Unknown | $0 to Unknown | $0 to Unknown |
| Cost - Department of Revenue | |||
| Salaries and Fringe Benefits | $0 to ($103,556) | $0 to ($127,375) | $0 to ($130,559) |
| Systems Programming | $0 to ($92,340) | $0 | $0 |
| Equipment and Office Expense | $0 to ($34,434) | $0 to ($9,460) | $0 to ($9,744) |
| Total Cost - DOR | $0 to ($230,330) | $0 to ($136,835) | $0 to (140,303) |
| NET ESTIMATED EFFECT ON GENERAL REVENUE FUND | $0 to less than ($230,330) | $0 to less than ($136,835) | $0 to less than ($140,303) |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| CITIES OF MARSTON, MATTHEWS & STEELE, AND VILLAGE OF LAMAR HEIGHTS | |||
| Income - Tax Revenues | Unknown | Unknown | Unknown |
| Cost - Promotion of tourism, infrastructure improvements, and administration of tax collections |
(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 proposal further allows the Village of Lamar Heights to impose, upon voter approval, a room tax of not more than 6% per night and sales tax on retail food purchases of not more than 1%. The proceeds from such taxes are to be used for capital 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 Revenue - Taxation
Department of Economic Development - Tourism
City of Marston
NOT RESPONDING: Cities of Matthews and Steele
Village of Lamar Heights
Mickey Wilson, CPA
Director
May 3, 2004