HB3 TOURISM SALES TAX.
Sponsor: Kreider, Jim (142) Effective Date:00/00/00
CoSponsor: LR Number:1876-03
Last Action: 09/15/97 - Approved by Governor (G)
09/16/97 - Delivered to Secretary of State
CCS SCS HCS HB 3
Next Hearing:Hearing not scheduled
Calendar:HOUSE BILLS FOR THIRD READING (S)
Position on Calendar:002
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
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Available Bill Summaries for HB3
| Truly Agreed | Perfected | Committee | Introduced |


Available Bill Text for HB3
| Truly Agreed | Perfected | Committee | Introduced |

Available Fiscal Notes for HB3
| House Committee Substitute | Introduced |

BILL SUMMARIES

TRULY AGREED

CCS SCS HCS HB 3 -- TOURISM TAXES

This bill revises the Municipal Tourism Tax law under the
authority of which the city of Branson has operated tourism
taxation.  In its main provisions the bill:

(1)  Revises the definition of a city which may have a tourism
tax, reducing the number of hotel and motel rooms in the city
limits from 5,000 to 2,500, and deleting references to
population, class of city, and geography;

(2)  Prohibits a city with a local sales tax or a gross receipts
tax for tourism under another law from using the tourism tax
under this law;

(3)  Adds timeshare interests in condominiums to the items
subject to the room tax portion of the tourism tax;

(4)  Adds liquor by the drink to the items subject to the
restaurant food and drink tax portion of the tourism tax;

(5)  Establishes accounts within the Tourism Tax Trust Fund.
The 75% of the taxes collected to be used for infrastructure
construction and maintenance will be placed in the
Infrastructure Account, except that the portion needed to pay
off bonds or indebtedness incurred prior to the effective date
of the bill will be placed in the Debt Retirement Account.  The
25% of the taxes collected for tourism promotion will be placed
in the Tourism Promotion Account;

(6)  Revises ballot language for approval of the tourism tax and
of bond issues;

(7)  Permits the use of newly approved tourism taxes to retire
previously voter approved bonded indebtedness; and

(8)  Allows a separate election to approve the use of a voter
approved tax to fund a bond issue.

In other provisions, the bill:

(1)  Repeals the specific definitions of counties and cities
authorized to impose, upon voter approval, a hotel tax of up to
5% to be used for the promotion of tourism.  The definitions
currently apply to Adair, Callaway, Daviess, Dent, Harrison,
Linn, Nodaway and Johnson counties and the cities of West
Plains, Maryville, Trenton, Bethany, Chillicothe, Cameron,
Moberly, Warrensburg, Washington, Rockport, Bowling Green, and
St. Peters.  The tax may be imposed in any county, or any city
which is the county seat of any county or which now or hereafter
has a population of more than 3,500 inhabitants and which has
heretofore or is hereafter authorized by the General Assembly;

(2)  Revises the definition of the county authorized to
establish a County Convention and Sports Facility Authority that
currently applies to St. Charles County.  All references to
county classification are repealed;

(3)  Revises the definition of the counties authorized to
establish a Lake Area Business District that currently applies
to Camden, Miller, and Morgan counties.  Reference to population
of the counties is repealed and the shoreline mileage is reduced
from 1,000 to 100 miles.  The revision also excludes recognized
church facilities operated by the church for religious education
and recreation from the hotels, motel, and resorts, which are
subject to the tourism tax in a lake area business district;

(4)  Authorizes the City of Boonville and Howard County to
impose, upon voter approval prior to January 1, 2003, a hotel
and motel tax of between 2% and 5% for the promotion of
tourism.  The tax includes a docking facility which rents slips
to recreational boats which are used by transients for
sleeping.  The tax may be collected by the Department of Revenue
or by the local authority. A 5 member commission is appointed by
the governing body of the city or county to administer the tax
funds.  The members of the commission will serve staggered terms
and be representatives of the hotel industry, individuals active
in tourism, and other local businesses.  A member of the
governing will act as a nonvoting liaison between the governing
body and the commission.  Members will serve without
compensation;

(5)  Updates the definition of certain cities and counties
authorized to establish a promotional tourism tax. The
definition currently applies to Stoddard and Pemiscot counties
and the cities of Poplar Bluff and Sikeston;

(6)  Allows for the collection of local sales taxes or gross
receipts taxes collected for the promotion of tourism by the
Department of Revenue or local authority; and

(7)  Prohibits a political subdivision from imposing more than
one sales tax or local gross receipts tax for the promotion of
tourism.

This bill has an emergency clause and a severability clause.


PERFECTED

HCS HB 3 -- TOURISM TAX (Kreider)

This substitute revises the Municipal Tourism Tax law under the
authority of which the city of Branson has operated tourism
taxation.  In its main provisions the bill:

(1)  Revises the definition of a city which may have a tourism
tax, changing the population range from 3,001 - 4,999 to 3,501 -
249,999, reducing the number of hotel and motel rooms in the
city limits from 5,000 to 2,500, and deleting references to
class of city and geography;

(2)  Prohibits a city with a local sales tax or a gross receipts
tax for tourism under another law from using the tourism tax
under this law;

(3)  Adds timeshare interests in condominiums to the items
subject to the room tax portion of the tourism tax;

(4)  Adds liquor by the drink to the items subject to the
restaurant food and drink tax portion of the tourism tax;

(5)  Establishes accounts within the Tourism Tax Trust Fund.
The 75% of the taxes collected to be used for infrastructure
construction and maintenance will be placed in the
Infrastructure Account, except that the portion needed to pay
off bonds or indebtedness incurred prior to the effective date
of the bill will be placed in the Debt Retirement Account.  The
25% of the taxes collected for tourism promotion will be placed
in the Tourism Promotion Account;

(6)  Revises ballot language for approval of the tourism tax and
of bond issues;

(7)  Permits the use of newly approved tourism taxes to retire
previously voter approved bonded indebtedness; and

(8)  Allows a separate election to approve the use of a voter
approved tax to fund a bond issue.

In other provisions, the substitute:

(1)  Revises the definition of the county authorized to
establish a County Convention and Sports Facility Authority that
currently applies to St. Charles County.  All references to
county classification are repealed;

(2)  Revises the definition of the counties authorized to
establish a Lake Area Business District that currently applies
to Camden, Miller, and Morgan counties.  Reference to population
of the counties is repealed and the shoreline mileage is reduced
from 1,000 to 100 miles;

(3)  Revises the definition of the county authorized to
establish a Local Economic Development Sales Tax that currently
applies to Johnson County.  References to a state university and
to a bordering county are removed; and

(4)  Authorizes by ordinance the governing body of any city,
county, town, or village, upon voter approval, to impose a tax
of up to 4% on lodging, private tourist attractions, and
restaurants. The tax may be used for the sole purpose of funding
the promotion of tourism and  be known as the Local Promotion of
Tourism Tax.  No taxing authority may impose more than one
tourism tax within the same geographical area.

This bill has an emergency clause.

FISCAL NOTE:  No impact on state funds.


COMMITTEE

HCS HB 3 -- TOURISM TAX

SPONSORS:  Hoppe (Kreider)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government and Related Matters by a vote of 11 to 4.

This substitute revises the Municipal Tourism Tax law under the
authority of which the city of Branson has operated tourism
taxation.  In its main provisions the bill:

(1)  Revises the definition of a city which may have a tourism
tax, changing the population range from 3,001 - 4,999 to 3,501 -
249,999, reducing the number of hotel and motel rooms in the
city limits from 5,000 to 2,500, and deleting references to
class of city and geography;

(2)  Prohibits a city with a local sales tax or a gross receipts
tax for tourism under another law from using the tourism tax
under this law;

(3)  Adds timeshare interests in condominiums to the items
subject to the room tax portion of the tourism tax;

(4)  Adds liquor by the drink to the items subject to the
restaurant food and drink tax portion of the tourism tax;

(5)  Establishes accounts within the Tourism Tax Trust Fund.
The 75% of the taxes collected to be used for infrastructure
construction and maintenance will be placed in the
Infrastructure Account, except that the portion needed to pay
off bonds or indebtedness incurred prior to the effective date
of the bill will be placed in the Debt Retirement Account.  The
25% of the taxes collected for tourism promotion will be placed
in the Tourism Promotion Account;

(6)  Revises ballot language for approval of the tourism tax and
of bond issues;

(7)  Permits the use of newly approved tourism taxes to retire
previously voter approved bonded indebtedness; and

(8)  Allows a separate election to approve the use of a voter
approved tax to fund a bond issue.

This bill has an emergency clause.

FISCAL NOTE:  No income to state funds.

PROPONENTS:  Supporters say that because the Missouri Supreme
Court declared the Branson tourism tax unconstitutional, this
bill is needed.  The bill will allow Branson to enact a new
tourism tax to repay bonds. If the bonds are not paid, the city
will default and the state's and city's credit rating may be in
jeopardy.  The Branson area is a fast growing area and a new
water and sewer system were financed with the tourism tax and
bonds approved in 1993.  The 4,000 citizens of Branson are not
able to provide services and infrastructure for the 6 million
people who visit annually.  Branson also brings sales tax
revenue into the entire state.  Tourists stop at all areas of
the state on the way to Branson.  The promotion of Branson
promotes Missouri.  Most of the tax revenues received from the
tourism tax come from outside the state.  It is estimated that
80% of Branson tourists are from outside the state.

Testifying for the bill were Representatives Kreider and Long;
Lieutenant Governor Roger Wilson; Mayor of Branson; Branson Area
Chamber of Commerce; Missouri Municipal League; Citizens for
Branson; Branson Lodging Association; Missouri Restaurant
Association; Roderick Ore; Jack Kornmeier; Brent Butler; and
Steven Presley.

OPPONENTS:  Those who oppose the bill say that they do not
support the bill because, the tourism tax should not be used for
the promotion of tourism.  The tax should only be used for
infrastructure.  Businesses who do not belong to the Chamber of
Commerce are not promoted with the tax.

Testifying against the bill was the Taney County Citizens in
Action.

Steve Bauer, Legislative Analyst


INTRODUCED

HB 3 -- Tourism Tax

Sponsor:  Kreider

This bill revises the Municipal Tourism Tax law under the
authority of which the city of Branson has operated tourism
taxation.  In its main provisions the bill:

(1)  Revises the definition of a city which may have a tourism
tax, changing the population range from 3,001 - 4,999 to 3,501 -
249,999, reducing the number of hotel and motel rooms in the
city limits from 5,000 to 2,500, and deleting references to
class of city and geography;

(2)  Prohibits a city with a local sales tax or a gross receipts
tax for tourism under another law from using the tourism tax
under this law;

(3)  Adds a tax on timeshare interests in condominiums to the
room tax portion of the tourism tax;

(4)  Adds a tax on liquor by the drink to the restaurant food
and drink portion of the tourism tax;

(5)  Establishes accounts within the Tourism Tax Trust Fund.
The 75% of the taxes collected to be used for infrastructure
construction and maintenance will be placed in the
Infrastructure Account, except that the portion needed to pay
off bonds or indebtedness incurred prior to the effective date
of the bill will be placed in the Debt Retirement Account.  The
25% of the taxes collected for tourism promotion will be placed
in the Tourism Promotion Account;

(6)  Revises ballot language for approval of the tourism tax and
of bond issues;

(7)  Permits the use of newly approved tourism taxes to retire
previously voter approved bonded indebtedness; and

(8)  Allows a separate election to approve the use of a voter
approved tax to fund a bond issue.

The bill also revises the definition of the county authorized to
establish a County Convention and Sports Facility Authority that
currently applies to St. Charles County.  All references to
county classification are repealed.

This bill has an emergency clause.


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Last Updated September 27, 1997 at 9:15 am