COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4388H.01I Bill No.:HB 2129 Subject:Taxation and Revenue - General; Political Subdivisions; Cities, Towns, and
Villages; Tourism; Motels and Hotels
Type:Original Date:March 1, 2022Bill Summary:This proposal authorizes the city of Cameron and the city of Hamilton to
impose a transient guest tax whose revenues are dedicated to promoting
tourism.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 4388H.01I
Bill No. HB 2129
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025City of Cameron$0 or up to $45,990 $0 or up to $183,960$0 or up to $183,960City of Hamilton$0 or Unknown $0 or Unknown $0 or Unknown Local Government$0 or $45,990 to
Unknown
$0 or $183,960 to
Unknown
$0 or $183,960 to
Unknown L.R. No. 4388H.01I
Bill No. HB 2129
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration – Budget & Planning Division
of Cameron for the fiscal impact of this proposed legislation.
Officials from the Department of Revenue assume the proposal will have no fiscal impact on
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for this organization.
City of Cameron
Officials from the City of Cameron (Cameron) estimate the fiscal impact of the bill for fiscal
years 2023, 2024 & 2025 to be as follows:
(Reminder: 2022 will likely not be a factor due to any changes voted and approved would not
take effect until August or later which would delay the City of Cameron being able to make it
available for a vote of its citizens until November 2022 or April 2023 depending on the effective
date of the bill.
Revenue Increases: FY23 - estimate 50% of annual total or approximately $70,000
FY24 - full year collection or approximately $147,000
FY25 - full year collection or approximately $148,000
Officials from the City of Cameron note this revenue source is not expected to decrease any
other established revenues.
Costs that would increase would be sponsoring of community activities to revitalize the area.
Cost savings would be in the form of re-allocation of costs for proposed community activities.
Cameron currently has approximately 280 hotel/motel rooms @ 60% occupancy with an average
rate of $60 per room X 365 nights per year = $3,679,200. Those revenues X the 4% hotel/motel
tax rate = $147,168 annual revenue impact to the City of Cameron Tourism Bureau.
Oversight assumes the City Cameron has used a transient guest tax rate equal to four percent
(4%) when calculating the estimated fiscal impact of this proposed legislation.
Oversight notes this proposed legislation would allow the governing body of the City of
Cameron to impose a tax on the charges for all sleeping rooms paid by transient guests of hotels,
motels, bed and breakfast inns, campgrounds and any docking facility that rents slips to L.R. No. 4388H.01I
Bill No. HB 2129
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recreational boats that are used by transients for sleeping. This proposed legislation permits the
transient guest tax to be at least two percent (2%) but not more than five percent (5%) per
occupied room per night.
Oversight notes the transient guest tax proposed shall not become effective unless the governing
body of the City of Cameron submits to its voters a proposal to authorize the City of Cameron to
impose a transient guest tax and the voters of the City of Cameron approve the proposal.
Oversight notes the revenue generated as a result of the transient guest tax(es) collected by the
City of Cameron are to be used by the City of Cameron for the promotion of tourism.
Using the data provided by the City of Cameron, Oversight provides the possible fiscal impact
provided Cameron puts forth a rate other than, but including, four percent (4%):
Estimated Transient Guest Tax
Rate
Estimated Increase to City of Cameron's
Revenue(s)
2%$73,5843%$110,3764%$147,1685%$183,960
For purposes of this fiscal note, Oversight will assume the City of Cameron will put forth the
proposal authorized under this proposed legislation at a General Election. Oversight assumes the
next General Election will occur in November 2022 (Fiscal Year 2023) with such tax beginning
April 1, 2023 (per section 67.1362). Therefore, Oversight will report the revenue gain to the City
of Cameron beginning in Fiscal Year 2023 (3 months’ worth of collection).
For the purposes of this fiscal note, Oversight will not report a fiscal impact to the State of
Missouri as a result of a transient guest tax imposed by the City of Cameron, as the Missouri
Department of Revenue does not currently collect transient guest taxes (unless an agreement
with a political subdivision is made for such collection to be administered by the Missouri
Department of Revenue).
Oversight will report a revenue gain to the City of Cameron ranging from $0 (Cameron does not
propose to its respective voters the transient guest tax or the voters of Cameron reject the
proposal) “up to” Oversight’s estimated revenue increase to the City of Cameron provided
Cameron puts forth a transient guest tax equal to the maximum rate permitted of five percent
(5%).
City of Hamilton
Oversight was unable to receive a response from Hamilton city officials. Oversight notes the
city of Hamilton currently has two hotels, one RV Park, and six bed and breakfast facilities.
Source: https://visithamiltonmo.com/stay/ L.R. No. 4388H.01I
Bill No. HB 2129
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Oversight was unable to obtain detailed information regarding the number of rooms, rates, or
vacancies for the above-mentioned accommodations.
Oversight notes this proposed legislation would allow the governing body of the City of
Hamilton to impose a tax on the charges for all sleeping rooms paid by transient guests of hotels,
motels, bed and breakfast inns, campgrounds and any docking facility that rents slips to
recreational boats that are used by transients for sleeping. This proposed legislation permits the
transient guest tax to be at least two percent (2%) but not more than five percent (5%) per
occupied room per night.
Oversight notes the transient guest tax proposed shall not become effective unless the governing
body of the City of Hamilton submits to its voters a proposal to authorize the City of Hamilton to
impose a transient guest tax and the voters of the City of Hamilton approve the proposal.
Oversight notes the revenue generated as a result of the transient guest tax(es) collected by the
City of Hamilton are to be used by the City of Hamilton for the promotion of tourism.
Oversight notes this proposed legislation would allow the governing body of the City of
Cameron to impose a tax on the charges for all sleeping rooms paid by transient guests of hotels,
motels, bed and breakfast inns, campgrounds and any docking facility that rents slips to
recreational boats that are used by transients for sleeping. This proposed legislation permits the
transient guest tax to be at least two percent (2%) but not more than five percent (5%) per
occupied room per night.
For purposes of this fiscal note, Oversight will assume the City of Hamilton will put forth the
proposal authorized under this proposed legislation at a General Election. Oversight assumes the
next General Election will occur in November 2022 (Fiscal Year 2023) with such tax beginning
April 1, 2023, (per section 67.1362). Therefore, Oversight will report the revenue gain to the
City of Hamilton beginning in Fiscal Year 2023 (3 months’ worth of collection).
For the purpose of this fiscal note, Oversight
ranging from $0 (Hamilton does not propose to its respective voters the transient guest tax or the
voters of Hamilton reject the proposal) or an unknown revenue increase to the City of Hamilton;
provided Hamilton puts forth a transient guest tax equal to the maximum rate permitted of five
percent (5%).
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0 L.R. No. 4388H.01I
Bill No. HB 2129
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FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
CITY OF CAMERONRevenue Gain – Section 67.1360 – City
of Cameron Transient Guest Tax p. 3-4
$0 or up to
$45,990
$0 or up to
$183,960
$0 or up to
$183,960
ESTIMATED NET EFFECT ON
CITY OF CAMERON
$0 or up to
$45,990
$0 or up to
$183,960
$0 or up to
$183,960
CITY OF HAMILTONRevenue Gain – Section 67.1360 – City
of Hamilton Transient Guest Tax p. 4-5$0 or Unknown
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
CITY OF HAMILTON
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or could
exceed $45,990
$0 or $91,980
to Unknown
$0 or $183,960
to Unknown
FISCAL IMPACT – Small Business
This proposed legislation could impact any small business in Cameron or Hamilton that operates
as a hotel, motel, breakfast inn, campgrounds or any docking facility that rents slips to
recreational boats that are used by transients for sleeping; as these small businesses would be
required to collect and remit the transient guest tax, if approved by the voters, to the collecting
authority, increasing the small businesses administrative costs.
FISCAL DESCRIPTION
This proposal authorizes the city of Cameron and the city of Hamilton to impose a transient guest
tax whose revenues are dedicated to promoting tourism.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 4388H.01I
Bill No. HB 2129
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SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
City of Cameron
Julie MorffRoss StropeDirectorAssistant DirectorMarch 1, 2022March 1, 2022