Bill Summary: This proposal permits the creation of theater, cultural arts, and entertainment districts in certain counties and authorizes guest taxes in certain cities, defines transect-based zoning, and authorizes certain taxes in certain political subdivisions.

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2008	FY 2009	FY 2010
General Revenue	$0 to Unknown	$0 to Unknown	$0 to Unknown

Total Estimated Net Effect on General Revenue Fund	$0 to Unknown	$0 to Unknown	$0 to Unknown

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on Other State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on FTE	0	0	0

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
Local Government	$0 to Unknown	$0 to Unknown	$0 to Unknown

Oversight assumes Sections 67.997 has the potential to impact the State’s General Revenue Fund. The section is considered to be permissive and as written does not require certain defined local governments to initiate sales taxes for certain purposes.

Before there would be fiscal impact, the governing body would have to place the question of imposing a sales tax to the voters of the defined district. Oversight is showing this because the Department of Revenue- Sales Tax Division would collect the tax, and would retain a 1% collection fee which would go into the State’s General Revenue Fund. Fiscal impact will be shown as $0 or a positive unknown. If the political subdivision does not impose a sales tax, there would be no fiscal impact to the General Revenue Fund. If a tax were approved, the 1% collection fee would go into the General Revenue Fund. The amount is unknown.

The Department of Revenue assumes no fiscal impact from this part of the proposal.

In response to a similar proposal from this year (HB 69), officials of the Department of Economic Development - Tourism assumed no fiscal impact.

Oversight assumes this part of the proposal amends the current boundaries of the area that would be allowed to impose a transient guest tax on a portion of the Sullivan C-2 School District located in Franklin County.

Oversight assumes the City of Sullivan currently has the authority to impose a transient guest tax, but not within that portion described in this proposal.

Oversight assumes this proposal would require the City of Sullivan to seek voter approval to impose a transient guest tax on that portion of land allowed by this proposal.

Oversight assumes this proposal is permissive, and as written would have no fiscal impact without voter approval.

Theater, Cultural Arts and Entertainment Districts (Sections 67.2500, 67.2505 & 67.2510);

Officials from the Office of the State Courts Administrator assume the proposal would not have a fiscal impact on the courts.

Officials from the Department of Economic Development assume the proposal would not fiscally impact their agency.

Officials from the counties of Buchanan, Clay, Jackson, Boone and Jasper as well as the cities of St. Joseph, Independence and North Kansas City did not respond to our request for fiscal impact.

Officials from the Department of Revenue (DOR) state this legislation will not have a fiscal impact on their agency. However, the department included some comments from Office of Administration ITSD - DOR .

Office of Administration Information Technology (ITSD DOR) estimates the IT portion of this request can be accomplished within existing resources, however; if priorities shift, additional FTE/overtime would be needed to implement. Office of Administration Information Technology (ITSD DOR) estimates that this legislation could be implemented utilizing 2 existing CIT III for 2 months at a rate of $16,744.

Oversight assumes the proposal is permissive in nature. It allows local political subdivisions to create a theater, cultural arts and entertainment districts as well as allows certain cities to impose a transient guest tax. Oversight will assume a $0 to unknown fiscal impact to local political subdivisions. These taxes are subject to voter approval. Oversight will also assume DOR may retain 1 percent of the potential sales tax revenue generated within the new districts.

In response to a similar proposal from this year (SB 624), officials of the Department of Revenue stated that this proposal does not require their department to collect the sales tax. Officials assume that state revenues would be unaffected. Officials stated that the Taxation Division would have no fiscal impact.

Officials of the City of St. Louis did not respond to this fiscal note request; however, in response to a similar proposal of this session, fiscal note 1606-01 HB 603 the following fiscal impact statement was submitted:

Officials of the City of St. Louis - Budget Division stated that if the people were to approve a sales tax at the ½ cent rate it would generate an estimated $18,000,000 for 10 months of FY 2008.

Oversight assumes that this proposal is permissive and as written would have no fiscal impact without action by the governing body with voter approval.

Oversight will show fiscal impact as $0 to $18,000,000 the amount estimated by the City of St. Louis Budget Office. Oversight assumes fiscal impact would be $0 if the tax did not receive voter approval.

Oversight for the purposes of this fiscal note will show annual fiscal impact to the City of St. Louis for the public safety programs as $0. Oversight assumes annual costs would not exceed annual income generated from the sales tax for public safety.

Oversight assumes the City of St. Louis would collect the sales tax. This proposal does not require collection to be made by the Department of Revenue - Sales Tax Division.

In response to a similar proposal from this year (SB 419), officials of the Department of Natural Resources assumed no fiscal impact.

Oversight sent fiscal note response requests to several public water supply districts, and none have responded.

Oversight assumes there could be some election costs savings by lengthening the terms to every three years for directors from the date of being first elected rather than under the current staggered election cycle. Oversight would expect election costs savings per water district to be minimal.

Allows Kansas City to establish an administrative system (Sections 479.010 & 479.011);

In response to a similar proposal from this year (HCS for SB 237), officials of the Office of State Courts Administrator assumed no fiscal impact on the Courts.

In response to a similar proposal from this year (HCS for SB 237), officials of the Department of Elementary and Secondary Education assumed the municipal court structure may reduce the amount of fine revenue to Kansas City school districts. Officials did not estimate fiscal impact.

In response to a similar proposal from this year (HCS for SB 237), officials of the City of Kansas City - Office of City Attorney assumed this proposal would enable the City to establish an administrative tribunal system. Office assume if the city elected not to establish a system the fiscal impact would be zero. Officials stated the savings would result from inspectors spending

less time in court when defendants don't show up, which causes costs associated with serving bench warrants and attending rescheduled court hearings. If it works as anticipated, code enforcement cases will be resolved faster, thereby increasing efficiency and generating additional savings.

Oversight assumes this proposal as written is enabling legislation and does not require the City of Kansas City to establish an administrative system to deal with municipal code violations.

Small businesses within the new districts or small business that offer sleeping rooms in certain special charter cities may be required to collect an additional tax, dependent upon governing body and voter approval.

Section 67.997 allows Perry County to impose, upon voter approval, a sales tax of up to one-fourth of 1% to equally fund senior services and youth programs.

Currently, the City of Sullivan is authorized to levy a transient guest tax between 2% and 5% per room per night to be used for the promotion of tourism. Section 67.1360 allows Franklin County to impose the same tax, upon voter approval, in the Sullivan C-II School District which is partially located in both the city and the county.

Currently, only St. Charles County and its municipalities are allowed to form a theater, cultural arts, and entertainment district. Sections 67.2500, 67.2505 & 67.2510 allows the governing body of any county or city that has adopted transect-based zoning under Chapter 89, RSMo, and the counties of Boone, Jasper Franklin, Clay, or Jackson and their municipalities to form a district.

(2) Reduces the number of contiguous acres the district must include from 50 to 25;

(3) Requires, instead of allows, the governing body of the city or county in which a district is proposed to pass a resolution describing the district when a petition for its creation is filed;

(4) Allows the cities of Augusta, Carrollton, Chillicothe, Liberty, Miami, Missouri City, and Pleasant Hill to impose a transient guest tax of up to 5%; and

Section 92.500 allows the City of St. Louis to put before its voters a ballot measure allowing the city to impose a sales tax, not to exceed one-half of one percent, solely for the purpose of providing revenues for the operation of public safety departments, including police and fire departments.

Section 247.060 modifies the length of term for directors of public water supply districts elected in 2008, 2009, and 2010, due to a change in the date of their election from June to April in statute.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

NOT RESPONDING: counties of Perry, Boone, Jasper, Buchanan, Clay and Jackson; cities of St. Joseph, Independence and North Kansas City

FISCAL IMPACT - Local Government	FY 2008 (10 Mo.)	FY 2009	FY 2010
LOCAL POLITICAL SUBDIVISIONS

Income - Cities and Counties for sales tax in various sections	$0 to Unknown	$0 to Unknown	$0 to Unknown

Income - Cities for transient guest tax	$0 to Unknown	$0 to Unknown	$0 to Unknown

ESTIMATED NET EFFECT TO THE LOCAL POLITICAL SUBDIVISIONS	$0 to Unknown	$0 to Unknown	$0 to Unknown


PUBLIC WATER SUPPLY DISTRICTS

Savings - Election costs due to changes in director’s terms. (Section 247.060)	Minimal	Minimal	Minimal

ESTIMATED NET EFFECT TO LOCAL GOVERNMENT	Minimal	Minimal	Minimal



CITY OF ST. LOUIS PUBLIC SAFETY FUND

Income - City of St. Louis
From voter approved sales tax - Section 92.500	$0 to $18,000,000	$0 to $18,000,000	$0 to $18,000,000

Cost - City of St. Louis
From collection, administration, and providing public safety programs and projects. - Section 92.500	$0 to ($18,000,000)	$0 to ($18,000,000)	$0 to ($18,000,000)

ESTIMATED NET EFFECT TO CITY OF ST. LOUIS PUBLIC SAFETY FUND	$0	$0	$0

FISCAL IMPACT - State Government	FY 2008 (10 Mo.)	FY 2009	FY 2010
GENERAL REVENUE

Income - Department of Revenue
1 percent collection fee on sales tax revenue of various sections.	$0 to Unknown	$0 to Unknown	$0 to Unknown

ESTIMATED NET EFFECT TO THE GENERAL REVENUE FUND	$0 to Unknown	$0 to Unknown	$0 to Unknown