COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2799-01

Bill No.: SB 683

Subject: Tourism: Sleeping Room Tax

Type: Original

Date: January 2, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Revenue (DOR) assume if a sleeping room tax were adopted by the City of Festus, that the Department of Revenue would not collect the tax, therefore, there would be no fiscal impact. Officials stated if the DOR would be required to collect the tax then they would have fiscal impact.



Officials of the Department of Economic Development- Division of Tourism (DED) stated there would be no fiscal impact to their department.



Officials of the City of Festus assume there would be no fiscal impact unless the city's governing body would ask and receive voter approval to impose a sleeping room tax. Officials stated that if the voters would approve the tax the city would realize approximately $60,347 annually if the tax were 2%. Officials assume there would be some costs associated with collection of the tax.



Oversight assumes this proposal is enabling legislation and would have no state or local fiscal impact. The City of Festus would have no fiscal impact without action of their governing body and with voter approval. Oversight will show fiscal impact as $0.



FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0



FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0



FISCAL IMPACT - Small Business



Small businesses of the hotel/motel industry or bed and breakfast, campgrounds, or who operates a docking facility which rents slips to recreational boats which are used by transients for sleeping could be fiscally impacted to the extent that they may incur additional administrative duties and costs related to collection of the tax.



DESCRIPTION



This act authorizes the governing body of the City of Festus (Jefferson County) to place a question before the voters regarding imposition of a hotel-motel tax of between 2% and 5% for the promotion of tourism.



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

City of Festus





























Jeanne Jarrett, CPA

Director January 2, 2002