SECOND EXTRAORDINARY SESSION

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 3

89TH GENERAL ASSEMBLY






Reported from the Committee on Local Government & Related Matters, September 9, 1997, with recommendation that the House Committee Substitute for House Bill No. 3 Do Pass.

ANNE C. WALKER, Chief Clerk

L1876.06C




AN ACT

To repeal sections 94.800, 94.802, 94.805, 94.810, 94.812, 94.815, 94.817, 94.820 and 94.822, RSMo 1994, relating to municipalities and other political subdivisions, and to enact in lieu thereof eight new sections relating to remedying constitutional defects in the local tourism taxes of municipalities and other political subdivisions currently authorized pursuant to state law or in bills passed by the eighty-ninth general assembly during the first regular session, as well as revisions ancillary to authorization of said tourism taxes, with an emergency clause.






Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Sections 94.800, 94.802, 94.805, 94.810, 94.812, 94.815, 94.817, 94.820 and 94.822, RSMo 1994, are repealed and eight new sections enacted in lieu thereof, to be known as sections 94.800, 94.802, 94.805, 94.810, 94.815, 94.817, 94.820 and 94.822, to read as follows:

94.800. In addition to any other [sales tax] taxes provided by law, [there is hereby established a "Municipal Tourism Tax" to] tourism taxes may be imposed by certain municipalities pursuant to sections 94.802 and 94.805 and shall be administered in accordance with the provisions of sections 94.800 to 94.825; provided, however, that if any municipality imposes a local sales tax or a local gross receipts tax for the purpose of promoting tourism under any other statutory or charter authorization, such municipality shall not also impose a tourism tax pursuant to section 94.802 or 94.805.

94.802. 1. In addition to [all other taxes prescribed by law] any tourism tax imposed by section 94.805, the governing body of any municipality [of the fourth classification] with a population of more than three thousand five hundred inhabitants but less than [five] two hundred and fifty thousand inhabitants and with more than [five thousand] two thousand five hundred hotel and motel rooms inside the municipal limits [and which is located in a county that borders the state of Arkansas] may impose, by ordinance [or order], a tourism tax at a rate not to exceed four percent on the following:

(1) The price paid or charged to any person for rooms or accommodations paid by transient guests of hotels, motels, condominium units, time share interests in condominiums, campgrounds, and tourist courts situated within the municipality[, at a rate not to exceed four percent of such price paid or charged.]; and

(2) The price paid or charged for any admission ticket to or participation in any private tourist attraction in such municipality.

2. As used in this section, the term "hotel", "motel", "condominium", "timeshare interests in condominiums", or "tourist court" means any structure or building, under one management, which contains rooms furnished for the accommodation or lodging of guests, with or without meals being provided, including bed and breakfast facilities, and kept, used, maintained, advertised, or held out to the public as a place where sleeping accommodations are sought for pay or compensation to transient guests and the use of the term "hotel" or "motel" alone shall also be deemed to include all such structures, buildings and facilities, and the term "campground" means real property, other than state-owned property, which contains parcels for rent to transient guests for pay or compensation, which may include temporary utility hook-ups for use by the transient guests, and where such transient guests generally use tents, recreational vehicles or some other form of temporary shelter while on the rented premises. Shelters for the homeless operated by not for profit organizations are not a hotel, motel, or tourist court for the purposes of this section. As used in this section, the term "transient guest" means a person who occupies a room or rooms in a hotel, motel, campground, or tourist court for thirty consecutive days or less.

3. As used in this section, "private tourist attraction" means any commercial entity which appeals to the recreational desires and tastes of the traveling public through the presentation of services or devices designed to entertain or educate visitors, including but not limited to:

(1) Amusement parks, carnivals, circuses, fairs and water parks;

(2) Aerial tramways;

(3) Commercial animal, reptile, and zoological exhibits;

(4) Commercial beaches and hot springs;

(5) Go-carts/miniature golf establishments;

(6) Horse shows and rodeos;

(7) Rides on airplanes, helicopters, balloons, gliders, parachutes and bungee jumps;

(8) Automobile, bicycle, dog, horse, and other racing events;

(9) Music shows and pageants, movie theaters, and live theaters;

(10) Regularly scheduled and special professional sporting events including, but not limited to, football, baseball, basketball, hockey, tennis, golf, bowling, soccer, horse racing, bicycle racing, human track and field events, table tennis and other racquet events, except that attractions owned or operated by schools, colleges and universities shall be exempt from the provisions of this subdivision. Attractions operating on an occasional or intermittent basis for fund-raising purposes by nonprofit charitable organizations whose ordinary activities do not involve the operation of such attractions shall be exempt from the admissions tax imposed by this section.

94.805. In addition to [the] any tourism tax imposed by section 94.802, the governing body of any municipality [of the fourth classification] described in section 94.802 may impose, by ordinance [or order], a tourism tax on the purchase price paid or charged to any person for food and drinks sold on the premises of restaurant establishments in such municipality or for drinks sold in such municipality for consumption on the premises by establishments licensed pursuant to section 311.090, RSMo, to sell intoxicating liquors, at a rate not to exceed two percent, on such purchase price paid or charged.

94.812. Every retailer, vendor, operator, and other person who sells or provides goods and services subject to tax under sections 94.802 [to 94.810] or 94.805 shall be liable and responsible for the collection and payment of taxes due under these sections and shall make a return and remit such taxes to the municipality, at such times and in such manner as the governing body of the municipality shall prescribe. The collection of the taxes imposed by these sections shall be computed in accordance with schedules or systems approved by the governing body of the municipality. Such schedules or systems shall be designed so that no such tax is charged on any sale of one dollar or less.

94.815. 1. All taxes authorized and collected under sections 94.800 to 94.825 shall be deposited by the municipality in a special trust fund to be known as the "Tourism Tax Trust Fund". The moneys in such tourism tax trust fund shall not be commingled with any funds of the municipality.

2. Except as provided in subsection 3 of this section, seventy-five percent of the taxes collected shall be deposited in an "Infrastructure Account" within the tourism tax trust fund and shall be used, upon appropriation by the municipality, solely for the purpose of constructing and maintaining infrastructure improvements, to include sidewalks, streets, highways, roads, waterworks, wastewater including distribution and collection systems and solid waste disposal facilities, the costs of which may be funded by issuing bonds which may be retired by revenues received from [the] tourism [tax] taxes imposed [on sales or charges by sections] pursuant to sections 94.802 [to 94.810] and 94.805 or the retirement of debt under previously authorized bonded indebtedness and the costs of operation and maintenance of such infrastructure improvements.

3. Notwithstanding the provisions of subsection 2 of this section, if any outstanding bonds have been issued or indebtedness has been incurred prior to the effective date of this act for the purpose of constructing and maintaining infrastructure improvements, including sidewalks, streets, highways, roads, waterworks, wastewater including distribution and collection systems and solid waste disposal facilities, then a portion of the seventy-five percent of the collected taxes to be deposited in the infrastructure account pursuant to subsection 2 of this section shall instead be deposited in a "Debt Retirement Account" within the tourism tax trust fund. The portion of the seventy-five percent of collected taxes to be deposited in the debt retirement account and the administration of such account shall be pursuant to section 94.820.

4. Twenty-five percent of the taxes collected shall be deposited into a "Tourism Promotion Account" within the tourism tax trust fund and shall be used, upon appropriation by the municipality, for tourism marketing and promotional purposes.

5. The [tax] tourism taxes authorized by sections 94.802 [to 94.810] and 94.805 shall be in addition to any and all other [sales] taxes allowed by law, but no ordinance imposing a tax under sections 94.802 [to 94.810] and 94.805 shall be effective unless the governing body of the municipality submits to the voters of the municipality at [a municipal or state general, primary or special election] an election permitted pursuant to section 115.123, RSMo, a proposal to authorize the governing body of the municipality to impose such tax and, if such tax is to be used to retire bonds authorized under this section, to authorize such bonds and their retirement by such tax or charge or to authorize the retirement of debt under previously authorized bonded indebtedness.

94.817. 1. The ballot of submission shall contain substantially, but need not be limited to, the following:

(1) If the proposal submitted involves only authorization to impose the [taxes] tourism tax authorized by [sections] section 94.802 [to 94.810], the following language:

Shall the municipality of .................................. (insert name of municipality) impose a tourism tax of .......% on [sales, charges or admissions on all] the price paid or charged for rooms or accommodations thirty days or less at hotels, motels, [recreation vehicle parks] tourist courts, campground sites, condominium units [rented for less than thirty days, and on sales of admissions to all ticketed attractions], time share interests in condominiums and the price charged for tickets and other charges for admission to or participation in private tourist attractions for the purpose of funding ........................... (insert type of improvement), which may include the retirement of debt under previously voter approved bonded indebtedness, and promoting tourism?

YES NO

(2) If the proposal submitted involves only authorization to impose the [taxes] tourism tax authorized by section 94.805, the following language:

Shall the municipality of ................................ (insert name of municipality) impose a tourism tax of .......% on [sales of all] the price paid or charged for food and drinks sold in [restaurant] restaurants and other establishments for the purpose of funding ........................ (insert type of improvement), which may include the retirement of debt under previously voter approved bonded indebtedness, and promoting tourism?

YES NO

(3) If the proposal submitted involves authorization to issue bonds and repay such bonds with revenues from the collection of the tourism tax authorized by sections 94.802 [and 94.810], the following language:

Shall the municipality of ................................ (insert name of municipality) issue bonds in the amount of $ ....................... (insert amount) for the purpose of funding ........................... (insert type of improvement) and [repay such bonds by imposing] shall a tourism tax of ......% be imposed on [sales, charges or admissions on all] the price paid or charged for rooms or accommodations for less than thirty days at hotels, motels, [recreation vehicle parks] tourist courts, campground sites, condominium units [rented for less than thirty days, and on sales of admissions to all ticketed attractions], time share interests in condominiums and the price charged for tickets and other charges for admission to or participation in private tourist attractions to repay such bonds or previously voter approved bonded indebtedness and to promote tourism?

YES NO

(4) If the proposal submitted involves authorization to issue bonds and repay such bonds with revenues from the collection of the tax authorized by section 94.805, the following language:

Shall the municipality of ................................. (insert name of municipality) issue bonds in the amount of $ ........................ (insert amount) for the purpose of funding ............................ (insert type of improvement) and [repay such bonds by imposing] shall a tourism tax of .......% on [sales of all] the price paid or charged for food and drinks sold in [restaurant] restaurants and other establishments to repay such bonds or previously voter approved bonded indebtedness and promote tourism?

YES NO

2. [If a majority of the votes cast on the proposal by the qualified voters voting thereon are in favor of the proposal, including when the proposal authorized the reduction of debt under previously authorized bonded indebtedness, then the ordinance or order shall become effective.] Any proposal to impose a tourism tax shall be approved by a majority of the qualified voters voting thereon before the tax shall become effective. Any proposal [submitted under subsection 1 of this section] to issue bonds and impose a [sales] tourism tax to retire such bonds must be approved by the constitutionally required percentage of the qualified voters voting thereon [to become effective. If a majority of the votes cast by the qualified voters voting are opposed to the proposal, then the governing body of the municipality shall have no power to issue any bonds or impose the taxes authorized in sections 94.802 to 94.810 unless and until the governing body of the municipality shall again have submitted another proposal to authorize the governing body of the municipality to issue any bonds or impose the sales tax authorized by this section, and such proposal is approved by the requisite majority of the qualified voters voting thereon.] before such bonds may be issued; provided however, if a majority of the qualified voters voting thereon are in favor of the proposal, the governing body of the municipality may nevertheless impose any tourism tax submitted to the voters as a part of such proposal and use the revenues from the tourism tax for the retirement of debt under previously voter approved bonded indebtedness. A proposal to impose a tourism tax or to issue bonds which does not receive the requisite majority of the qualified voters voting thereon to impose a tourism tax or to issue bonds may by action of the governing body of the municipality be resubmitted at a subsequent election. In the event a proposal to authorize the issuance of bonds and to impose a tourism tax does not receive the affirmative vote of the constitutionally required percentage of qualified voters voting thereon for the issuance of bonds but does receive the affirmative vote of a majority of the qualified voters voting thereon and the tourism tax then becomes effective, the governing body of the municipality may submit a proposal to issue bonds at a subsequent election and utilize a previously voter approved tourism tax to retire said bonds, and in such event, the ballot of submission shall be substantially in the following language:

Shall the municipality of ............... (insert name of municipality) issue bonds in the amount of $ ..... (insert amount) for the purpose of funding ........ (insert type of improvement) and repay such bonds by using the tourism .......(here insert "tax" or "taxes") previously voter approved?

YES NO.

94.820. 1. If a debt retirement account is established pursuant to subsection 3 of section 94.815, then a portion of seventy-five percent of the revenues received by a municipality [which issues bonds under section 94.815 and imposes the] from a tourism tax authorized by sections 94.802 [to 94.810 to retire such bonds] or section 94.805 which is required to be set aside for debt retirement purposes by any sinking fund or other requirement in connection with any bonds or indebtedness, or which is required by ordinance to be set aside for debt retirement purposes and to establish reserves and additional security, or which is otherwise required to be set aside so as to make scheduled payments upon and otherwise secure any outstanding bonds or indebtedness shall be deposited in [a special trust fund] a debt retirement account within the tourism tax trust fund provided for in section 94.815 and shall be used solely to retire [such] any outstanding bonds[, except to the extent that such funds are required for the operation and maintenance of infrastructure improvements.] or indebtedness. Any remaining portion of the seventy-five percent of the revenues not deposited in the debt retirement account pursuant to this subsection shall be deposited in the infrastructure account provided for in section 94.815.

2. Once all [such] the bonds and indebtedness for which the debt retirement account was established have been retired, all funds remaining in [the special trust fund required by this section] such account shall be [used solely for the maintenance of the infrastructure improvements made with the revenue received as a result of the issuance of such bonds. Any funds in the special trust fund required by this section which are not needed to meet current obligations under the bonds issued may be invested by the governing body in accordance with applicable laws relating to the investment of other municipal funds. The provisions of this section shall apply only to taxes authorized by sections 94.802 to 94.810 which have been imposed to retire bonds issued under sections 94.800 to 94.825. Twenty-five percent of such revenues received shall be used for tourism marketing and promotional purposes.] transferred to the infrastructure account provided for in section 94.815.

94.822. [The taxes] A tourism tax authorized by [sections 94.802 to 94.810] section 94.802 or 94.805 shall be effective at such time as the governing body of the municipality shall determine within ninety days from the date such [taxes are] tax is approved by the voters of the municipality pursuant to section 94.817. After the effective date of any tax imposed under the provisions of sections 94.800 to 94.825, the municipality shall perform all functions incident to the administration, collection, enforcement, and operation of the tax [in the same manner as provided in sections 94.500 to 94.570, except that the municipality shall collect the tax authorized under the authority of sections 94.802 to 94.810]. The taxes imposed under sections 94.800 to 94.825 shall be collected together and reported upon such forms and under such ordinances or administrative rules and regulations as may be prescribed by the governing body of the municipality.

[94.810. In addition to the taxes imposed by sections 94.802 and 94.805, the governing body of any municipality of the fourth classification described in section 94.802 may impose, by ordinance or order, a tourism tax on the sale of each ticket or other charge allowing admission to or participation in any private tourist attraction in such municipality, at a rate not to exceed four percent on the purchase price paid or charged to any person for each ticket. For purposes of this section, "private tourist attraction" means any commercial entity which appeals to the recreational desires and tastes of the traveling public through the presentation of services or devices designed to entertain or educate visitors, including but not limited to:

(1) Amusement parks, carnivals, circuses, fairs and water parks;

(2) Aerial tramways;

(3) Commercial animal, reptile, and zoological exhibits;

(4) Commercial beaches and hot springs;

(5) Go-carts/miniature golf establishments;

(6) Horse shows and rodeos;

(7) Rides on airplanes, helicopters, balloons, gliders, parachutes and bungee jumps;

(8) Automobile, bicycle, dog, horse, and other racing events;

(9) Music shows and pageants, movie theaters, and live theaters;

(10) Regularly scheduled and special professional sporting events including, but not limited to, football, baseball, basketball, hockey, tennis, golf, bowling, soccer, horse racing, bicycle racing, human track and field events, table tennis and other racquet events, except that attractions owned or operated by schools, colleges and universities shall be exempt from the provisions of this subdivision. Attractions operating on an occasional or intermittent basis for fund-raising purposes by nonprofit charitable organizations whose ordinary activities do not involve the operation of such attractions shall be exempt from the admissions tax imposed by this section.]

Section B. Because of the decision of the Missouri Supreme Court in "Tillis, et al. v. City of Branson", Case No. 79640, on May 27, 1997, holding sections 94.800 to 94.825, RSMo 1994, unconstitutional, the anticipated revenues from tourism taxes adopted pursuant to those sections are not available to retire bonds and other indebtedness issued in reliance upon those anticipated tourism tax revenues. If the tourism taxes are not reauthorized and reimposed at the November, 1997, election, a default will occur upon said bonds. In excess of twenty million dollars of such previously issued bonds are payable to the Missouri Environmental Improvement and Energy Resources Authority, an instrumentality of the state of Missouri created by section 260.010, RSMo, which in turn has issued bonds in reliance upon scheduled payments to be made to the Authority under the bonds issued in reliance upon the tourism tax revenues. A default in payment on the bonds held by the Authority will result in the depletion of the Water and Wastewater Loan Fund created by section 644.122, RSMo, thus jeopardizing the ability of the state of Missouri to make necessary loans for wastewater treatment facilities which will have an immediate and deleterious effect on the waterways of the state of Missouri and upon the public health and safety. Such will also have an immediate and lasting deleterious effect upon the creditworthiness, bond ratings and rates of interest chargeable on certain bonds, and may have such an effect on other bonds, issued in the future by the state of Missouri, its instrumentalities and political subdivisions. Because of the foregoing considerations, the need to fund infrastructure improvements, to continue existing programs to promote tourism, and to provide for services and infrastructure to accommodate tourism, this act is deemed necessary for the immediate preservation of the public health, welfare, peace and safety and is hereby declared to be an emergency act within the meaning of the constitution, and this act shall be in full force and effect upon its passage and approval.



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