COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4666-01
Bill No.: SB 1151
Subject: Tourism: Sales Tax, Cities
Type: Original
Date: February 25, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| 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.
ASSUMPTION
Officials of the Department of Revenue (DOR) stated that this proposal expands the purposes for which local tourism taxes can be used, and would have no fiscal impact to the DOR.
Officials of the Department of Economic Development (DED) stated that this proposal would have no fiscal impact to their department.
Oversight assumes this proposal is enabling legislation and would have no state fiscal impact. Certain local governments would have the option of using 35% of the tax collected for capital improvements. This proposal does not mandate that certain governing bodies of certain size cities to set aside 35% of tax collection for city capital improvements. Therefore, Oversight assumes there would be no local fiscal impact, without action of the City's governing body. Oversight will show fiscal impact to state and local governments 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
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act allows cities with a population of less than one thousand five hundred inhabitants which have a tourism tax on transient guests to transfer forty percent of tourism funds into the city's general revenue fund and to transfer thirty-five percent into the capital improvements fund. Under current law, twenty-five percent of the funds must be used for tourism marketing and
promotional purposes.
DESCRIPTION (continued)
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
Mickey Wilson, CPA
Acting Director
February 25, 2002