FIRST REGULAR SESSION

HOUSE BILL NO. 139

90TH GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVE LONG.

Pre-filed December 15, 1998, and 1000 copies ordered printed.

ANNE C. WALKER, Chief Clerk

L0708.01I

AN ACT

Relating to tourism sales taxation, with an emergency clause.

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

Section 1. The governing body of any city or county having more than five hundred hotel and motel rooms inside such city or county may impose a tax on the charges for all sleeping rooms paid by the transient guests of hotels or motels situated in the city or county or a portion thereof, which shall be not more than five percent per occupied room per night, except that such tax shall not become effective unless the governing body of the city or county submits to the voters of the city or county at a state general or primary election, a proposal to authorize the governing body of the city or county to impose a tax pursuant to this section and section 67.1002, RSMo. The tax authorized by this section and section 67.1002, RSMo, shall be in addition to the charge for the sleeping room and shall be in addition to any and all taxes imposed by law and the proceeds of such tax shall be used by the city or county solely for the promotion of tourism and for funding a convention and visitors bureau which shall be a general not for profit organization with whom the city or county has contracted, and which is established for the purpose of promoting the city or county as a convention, visitor and tourist center. Such tax shall be stated separately from all other charges and taxes.

Section 2. 1. The governing body of any city or county may by a majority vote impose a sales tax for the promotion of tourism pursuant to sections 2 to 8 of this act, but such tax shall not become effective unless the governing body of the city or county submits to the voters in any such city or county in which the proposed tax would be collected, at a primary or general election, a proposal to authorize the city or county to impose a tax pursuant to sections 2 to 8 of this act.

2. The ballot of submission shall be in substantially the following form:

Shall ................... (Insert the name of the city or county) impose a tourism sales tax of ................... (Insert rate of percent) percent?

YES NO

If a majority of the votes cast on the proposal by the qualified voters voting thereon are in favor of the proposal, then the tax shall be in effect. If a majority of the votes cast by the qualified voters voting are opposed to the proposal, then the governing body of the city or county shall have no power to impose the tax authorized by sections 2 to 8 of this act, unless and until the governing body of the city or county shall again have submitted another proposal to authorize the governing body of the city or county to impose the tax, and such proposal is approved by a majority of the qualified voters voting thereon.

3. The tourism tax may be imposed at a rate of not more than two percent on the receipts from the sale at retail of goods and services within the city or county or a portion thereof for which such tax has been adopted.

4. Within ten days after a vote in favor of the adoption of a tourism sales tax by the qualified voters, the governing body of the city or county shall make its order imposing the tax. The tax shall become effective on the first day of the second calendar quarter following notification to the director of the department of revenue of adoption of the tax, and such tax shall be collected by the department of revenue in the same manner as prescribed in section 32.087, RSMo, except as otherwise provided in sections 2 to 8 of this act.

Section 3. In the city or county or a portion thereof in which a tourism sales tax has been imposed pursuant to sections 2 to 8 of this act, every retailer within such area shall add the tax imposed by the provisions of sections 2 to 8 of this act to the sale price, and this tax shall be a debt of the purchaser to the retailer until paid, and shall be recoverable at law in the same manner as the purchase price.

Section 4. The governing body of any city or county which has adopted a tourism sales tax pursuant to sections 2 to 8 of this act may submit the question of repeal of the tax to the voters at any primary or general election. The ballot of submission shall be in substantially the following form:

Shall ...................... (Insert name of city or county) repeal the tourism sales tax of ..................... (Insert rate of percent) percent?

YES NO

If a majority of the votes cast on the proposal are in favor of repeal, that repeal shall become effective on December thirty-first of the calendar year in which such repeal was approved. The governing body of the city or county shall immediately notify the director of the department of revenue of the repeal of the tax following the voter's approval of such repeal.

Section 5. The order imposing the tourism sales tax pursuant to sections 2 to 8 of this act shall impose upon all sellers within the area wherein the tax is to be paid an additional tax on all goods and services. The amount reported and returned by the seller shall be computed on the basis of the tax imposed by the order as authorized by sections 2 to 8 of this act. The seller shall report and return the amount so computed to the director of revenue.

Section 6. On or after the effective date of any tax imposed pursuant to sections 2 to 8 of this act, the director of revenue shall be responsible for the administration, collection, enforcement, and operation of the tax, and all provisions of sections 32.085 and 32.087, RSMo, shall apply to the tax so imposed, unless contrary to the provisions of sections 2 to 8 of this act, in which case the provisions of sections 2 to 8 of this act shall control. An amount not to exceed one percent shall be retained by the director of revenue for deposit in the general revenue fund to offset the costs of collection.

Section 7. 1. All tourism sales taxes pursuant to sections 2 to 8 of this act collected by the director of revenue, less a maximum of one percent collection fee, shall be deposited in a special trust fund, which is hereby created, to be known as the "Advertising and Tourism Sales Tax Trust Fund". The advertising and tourism sales tax trust fund shall not be deemed to be state funds. Moneys in the advertising and tourism sales tax trust fund shall be distributed by the director on a monthly basis and shall be deposited with the city or county treasurer in a special trust fund, which is hereby created, to be known as the "Advertising and Tourism Promotion Trust Fund". The moneys in the advertising and tourism promotion trust fund shall be deemed to be dedicated city or county funds and shall not be commingled with any other funds of the city or county. The city or county treasurer shall keep accurate records of the amount of money in the trust fund and the records shall be open to the inspection of officers of such city or county, the state and the public.

2. The city or county treasurer may make refunds from the amounts in the trust fund and credited to the city or county for erroneous payments and overpayments made. If the city or county abolishes the tax, the city or county treasurer may retain, in the trust fund, for a period of one year, two percent of the amount collected from such area to cover possible refunds or overpayments of the tax within such area. After one year has elapsed after the effective date of abolition of the tax in such area, the city or county treasurer shall close the account of that area.

3. The city or county treasurer shall report quarterly on the management of the trust fund and administration of such tourism sales taxes. The city or county treasurer shall provide the governing body of the city or county with a detailed accounting of the source of all funds received by the treasurer for the advertising and tourism promotion trust fund.

4. The city or county treasurer and any deputies, assistants and employees, who shall have any duties or responsibilities in connection with the funds which come into their hands pursuant to sections 2 to 8 of this act shall enter additional surety bonds, payable to the cities or counties in whose behalf such funds have been collected pursuant to the provisions of sections 2 to 8 of this act, as may be required by the governing body of their respective cities or counties. The cost of the premium for the additional surety bonds shall be paid from the advertising and tourism promotion trust fund.

Section 8. The proceeds of any tax imposed pursuant to sections 2 to 8 of this act shall be used by the city or county solely for the promotion of tourism.

Section A. Because immediate action is necessary to allow cities and counties to use the advertising and tourism sales tax, sections 1 to 8 of this act are deemed necessary for the immediate preservation of the public health, welfare, peace and safety, and are hereby declared to be an emergency act within the meaning of the constitution, and sections 1 to 8 of this act shall be in full force and effect upon passage and approval or on July 1, 1999, whichever is later.

Missouri House of Representatives