HCS HB 515 -- TOURISM COMMUNITY ENHANCEMENT DISTRICTS

SPONSOR:  Marsh (Wood)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Tourism by a vote of 13 to 0.

Currently, each tourism community enhancement district has a
board of directors with at least five members.  This substitute
increases the number to seven directors and changes the
membership so that it is based on the amount of sales tax revenue
collected by each district rather than population.  A simple
majority vote is required for the removal of a board member
instead of the current two-thirds vote of the appointing
governing body.

Currently, the board is allowed to levy, upon voter approval, a
tourism tax of up to 1% on all sales within the district.  The
substitute prohibits the tourism tax from being assessed on the
sale of food, utilities, and telephone services.  The manner in
which the revenue from the tax is distributed is changed so that
98% of the revenue is used for the marketing, advertising, and
promotion of tourism; the administration of these activities; and
a reasonable reserve.  One percent of the revenue must be held in
reserve, and another 1% can be retained by the Department of
Revenue for the collection of the sales tax.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill will make it easier to
implement a retail sales tax in the Branson-area tourism
community enhancement district.  This tax is already authorized
but it has not been implemented.  The revenue from the tax will
be used exclusively for marketing the Branson area.  Branson
competes with several other states, including Wisconsin,
Tennessee, and South Carolina for tourism; and those states spend
significantly more to market their tourist destinations.  Branson
is unable to reach essential target markets because they do not
have enough revenue for extensive marketing.

Testifying for the bill were Representative Wood; Branson Lakes
Area Chamber of Commerce and Visitors Bureau; Branson-Area
Tourism Enhancement District Tax Board; Herschend Family
Entertainment; and Kent Turner.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm