COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2515-01
BILL NO.: SB 724
SUBJECT: Business and Commerce; Cities, Towns and Villages; County Government; Economic Development; Motels and Hotels; Taxation and Revenue-Sales and Use; Tourism
TYPE: Original
DATE: January 24, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government* | $0 | $0 | $0 |
* This proposal is permissive. Voter approval would be required before fiscal impact would be realized.
ASSUMPTION
Officials of the Department of Revenue (DOR) and Department of Economic Development (DED) state this legislation authorizes Hickory County to implement and collect a sleeping room tax. DOR and DED have no administrative responsibility and therefore no fiscal impact to their agencies.
Officials of Hickory County state that this proposal is permissive. However, if voter approval was received, this legislation would provide funds to promote tourism for the Pomme Lake area.
Oversight assumes that this proposal is permissive. Voter approval is required before any county governing body would be authorized to implement a tourism tax. However, there would be fiscal impact if the governing body of a county would seek and receive voter approval to impose a tourism tax.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act authorizes Hickory County to vote to impose a tourism tax of not more than five percent on the charges for all sleeping rooms paid by transient guests of hotels and motels to fund tourism activities in the county.
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
Hickory County Administrator
Jeanne Jarrett, CPA
Director
January 24, 2000