HCS SB 21 -- SALES TAX

SPONSORS: Lybyer (Hoppe)

COMMITTEE ACTION: Voted "do pass" by the Committee on Local Government and Related Matters by a vote of 15 to 1.

This substitute adds Atchison, Franklin, Nodaway, Texas and Shannon counties, and municipalities within those counties to the political subdivisions authorized to impose a sales tax to be used solely for economic development purposes. The maximum sales tax rate for counties is 1% and the maximum sales tax rate for municipalities is 1/2%.

This substitute also authorizes, upon voter approval, the imposition of a sales tax up to 1%, in the city of St. Louis for the purpose of funding medical care for the medically indigent.

This bill has an emergency clause.

FISCAL NOTE: Effect on General Revenue Fund of Unknown* in FY 1998, Unknown* in FY 1999, & Unknown* in FY 2000. *There would be no fiscal impact expected unless the qualified voters in affected cities or counties would authorize the collection of a sales tax. A 1% collection fee would be deposited in General Revenue, the amount cannot be determined.

PROPONENTS: Supporters say that this bill allows for economic development in rural counties.

Testifying for the bill was Senator Lybyer.

OPPONENTS: There was no opposition voiced to the committee.

Steve Bauer, Research Analyst

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