COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5554H.01I Bill No.:HB 2674 Subject:Taxation And Revenue - Sales And Use; Political Subdivisions Type:Original Date:February 22, 2022Bill Summary:This proposal authorizes the City of St. Clair to levy a transient guest tax
upon voter approval whose revenues will be dedicated to 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. 5554H.01I
Bill No. HB 2674
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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 St Clair$0 $0 or Unknown $0 or Unknown Local Government$0 $0 or Unknown $0 or Unknown L.R. No. 5554H.01I
Bill No. HB 2674
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FISCAL ANALYSIS
ASSUMPTION
Section 67.1360 City of St Clair Transient Guest Tax
Oversight was unable to receive a response from St Clair officials; therefore, Oversight was
unable to obtain detailed information regarding the number of hotels, room rates, or vacancy
rates for accommodations in St Clair. Therefore, Oversight is unable to estimate the amount of
revenue that could be generated from the transient guest tax if approved by voters.
Oversight notes the transient guest tax proposed shall not become effective unless the governing
body of the City of St Clair submits to its voters a proposal to authorize a transient guest tax and
the voters of the St Clair approve the proposal.
Oversight notes the revenue generated as a result of the transient guest taxes collected by the
City of St Clair are to be used for the promotion of tourism.
Oversight notes this proposed legislation would allow the governing body of the City of St Clair
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 St Clair will put forth the
proposal authorized under this proposed legislation at a General Election in November 2022
(Fiscal Year 2023) with such tax beginning July 1, 2023 (Fiscal Year 2024). Therefore,
Oversight will report the revenue gain to the City of St Clair beginning in Fiscal Year 2024.
For the purpose of this fiscal note, Oversight
ranging from $0 (St Clair does not propose to its respective voters the transient guest tax or the
voters of St Clair reject the proposal) or an unknown revenue increase to the City of St Clair;
provided St Clair puts forth a transient guest tax equal to the maximum rate permitted of five
percent (5%).
Officials from the Department of Revenue (DOR) state transient guest taxes are assessed and
collected by the political subdivision and not DOR; therefore, the proposal will have no fiscal
impact on their organization. Oversight does not have any information to the contrary. L.R. No. 5554H.01I
Bill No. HB 2674
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Officials from the Office of Administration - Budget and Planning note transient guest taxes
are not collected by DOR, so there would be no 1% DOR collection fee that would increase
TSR.
Officials from the Office of Administration - Budget and Planning assume the proposal will
have no fiscal impact on their organization. Oversight does not have any information to the
contrary.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025CITY OF ST CLAIRRevenue Gain - §67.1360 Transient
Guest Tax p. 3-4$0
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
THE CITY OF ST CLAIR$0
$0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – Small Business
If approved by voters, hotels and other businesses in St Clair who provide transient guest
accommodations will be impacted by this proposal.
FISCAL DESCRIPTION
Authorizes the city of St. Clair to levy a transient guest tax upon voter approval whose revenues
will be dedicated to 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. 5554H.01I
Bill No. HB 2674
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SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 22, 2022February 22, 2022