COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2516-04
BILL NO.: Perfected SCS for SB 596
SUBJECT: Cities; Tourism, Taxes
TYPE: Original
DATE: February10, 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 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials of the Department of Economic Development- Division of Tourism stated that this proposal would have no fiscal impact to their department.
Officials of the Department of Revenue assumes that the local governments would collect their own tax, therefore, the Department of Revenue would have no administrative responsibility or fiscal impact.
Officials of the City of St. James estimate the sleeping room tax would generate income of $25,000 for 10 months of FY 2001; $30,000 in FY 2002; and $30,000 in FY 2003. Officials estimate administrative costs of collection for 10 months of FY 2001 at $500; $600 in FY 2002 and $600 in FY 2003. Officials assume this proposal is permissive and would require voter approval before the tourism tax could be imposed.
| 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 |
| LOCAL GOVERNMENT | |||
| City or County
Income to Tourism Fund Voter authorized tourism tax (less collection costs) |
Unknown |
Unknown |
Unknown |
Costs to Tourism Fund
for Promotion of Tourism (Unknown) (Unknown) (Unknown)
TOTAL ESTIMATED NET EFFECT TO
LOCAL GOVERNMENTS TOURISM
FUND* $0 $0 $0
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
*Oversight for the purposes of this fiscal note assumes all tourism tax collected would be spent resulting in an annual fund balance of zero. This proposal is permissive and would require voter approval to impose a tourism tax.
FISCAL IMPACT - Small Business
If the voters of certain local governments were to approve the imposition of a tourism tax, small businesses of the hotel, motel and sleeping room industry would be expected to be fiscally impacted to extent that they may incur additional administrative costs related to collection of the tax.
DESCRIPTION
This act allows the Cities of St. James, New Madrid, Caruthersville, and the counties of New Madrid, and Stoddard to impose tourism taxes not to exceed five percent per occupied room per night for the promotion of tourism. The tax is subject to a vote of the people in each community.
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- Division of Tourism
Department of Revenue
City of St. James
Jeanne Jarrett, CPA
Director
February 10, 2000