HB 463 -- TOURISM SUPPLEMENTAL REVENUE FUND

CO-SPONSORS:  Overschmidt, Lawson, Myers, Kelly (27),
Berkstresser

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tourism,
Recreational and Cultural Affairs by a vote of 18 to 0.

Currently and through Fiscal Year 2010, a portion of the
increase in state sales taxes collected from the retail sale of
tourist-oriented goods and services will be used to determine
the amount of increase to the transfer to the Tourism
Supplemental Revenue Fund.  The amount to be transferred is
determined by computing the state sales taxes derived from
retail sale of tourist-oriented goods and services from the
third year prior to the fourth year prior to the fiscal year the
transfer is made.  If the increase in the sales taxes is at
least 3% more than the fourth prior year, then half of the
amount above a 3% increase will be used to determine the amount
of increase in the transfer to the fund.  Transfers have a $3
million cap in each year.

This bill decreases the 3% to 2% and indexes the $3 million
maximum amount of increase to the growth of tourist-oriented
sales and services.

Sales of tourism-oriented goods and services are those sales by
businesses registered with the Department of Revenue under
certain SIC Codes or their successors.

The bill removes one inactive SIC Code and replaces it with a
new SIC Code.

FISCAL NOTE:  Cost to General Revenue of $0 in FY 2002,
$2,322,430 in FY 2003, and $4,067,850 in FY 2004.  Estimated Net
Effect on Division of Tourism Supplemental Revenue Fund of $0 in
FY 2002, FY 2003, and FY 2004.

PROPONENTS:  Supporters say that Missouri Tourism Supplemental
Revenue Fund is the most successful tourism funding procedure in
the country and has become the national model.  The proposed
changes will further streamline the system and ensure continued
success in the future.

Testifying for the bill were Representatives Lawson and
Berkstresser; and Missouri Tourism Alliance.

OPPONENTS:  There was no opposition voiced to the committee.

Robert Triplett, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am