SB 358 -- TOURISM COMMUNITY ENHANCEMENT DISTRICTS

SPONSOR:  Taylor (Richard)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tourism by
a vote of 14 to 0.

Currently, each tourism community enhancement district has a
board of directors with at least five members.  This bill
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
bill prohibits the tourism tax from being assessed on the sale of
food.  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 allows an economic
development sales tax to be levied within Branson's tourism
district which the area sorely needs for marketing.  Branson's
ability to effectively market the area as a tourist destination
is of vital importance to the entire state.  Branson needs the
ability to do better marketing, and the bill will allow that to
happen.

Testifying for the bill were Senator Taylor; Herschend Family
Entertainment, Incorporated; and Branson/Lakes Area Chamber of
Commerce and Convention and Visitors Bureau.

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 1:21 pm