HCS HB 2 -- SALES TAX FOR CONVENTION CENTER

This bill authorizes a local option sales and use tax by any
city which has a population of at least 35,000 and is located in
a county with a population of at least 63,000, but less than
80,000 (currently applies to Jefferson City), for economic
development purposes, defined in the bill as funding of the
construction and operation of civic and convention centers.  The
tax must be approved by the voters of the city.  The maximum tax
rate authorized is 1%.

HCS HB 2 -- LOCAL SALES AND USE TAX (Gratz)

This bill authorizes a local option sales and use tax by any
city which has a population of at least 35,000 and is located in
a county with a population of at least 63,000, but less than
75,000 (currently applies to Jefferson City), for economic
development purposes, defined in the bill as funding of the
construction and operation of civic and convention centers.  The
tax must be approved by the voters of the city.  The maximum tax
rate authorized is 1%.

This bill contains an emergency clause.

FISCAL NOTE:  Income to General Revenue Fund of $2,343 to
$18,742 for FY 1998, $9,840 to $78,718 for FY 1999, and $10,332
to $82,654 for FY 2000.

HCS HB 2 -- LOCAL SALES AND USE TAX

SPONSORS:  Hoppe (Gratz, Vogel)

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

This bill authorizes a local option sales and use tax by any
city which has a population of at least 35,000 and is located in
a county with a population of at least 63,000, but less than
75,000 (currently applies to Jefferson City), for economic
development purposes, defined in the bill as funding of the
construction and operation of civic and convention centers.  The
tax must be approved by the voters of the city.  The maximum tax
rate authorized is 1%.

This bill contains an emergency clause.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill will allow Jefferson
City to put before the voters a general local option sales tax
of up to 1% to pay for the construction of a convention center
in the city.

Testifying for the bill were Representatives Gratz and Vogel;
and Jefferson City.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 2 -- Local Sales/Use Tax

Co-Sponsors:  Gratz, Vogel

This bill authorizes a local option sales and use tax by any
city which has a population of at least 35,000 and is located in
a county with a population of at least 63,000, but less than
75,000 (currently applies to Jefferson City) for tourism and
economic development purposes, defined in the bill as funding of
the construction and operation of civic and convention centers.
The tax must be approved by the voters of the city.  The maximum
tax rate authorized is 1%.

In addition, the bill authorizes the same cities to adopt a
local option tourism and economic development tax at a rate of
2% on room charges for hotel, motel, tourist courts, and charges
for food and drinks sold at restaurants and other
establishments.  All revenues as the result of this tax will be
used solely for economic development and tourism, as defined
above.

The city can only adopt one of the options of taxation contained
in the bill.

This bill contains an emergency clause.