FALLERT DRAFTS LEGISLATION TO ENACT TOURISM USER TAX

JEFFERSON CITY - State Rep. Herb Fallert is drafting legislation to be considered this session that would provide additional funding for the Missouri Division of Tourism by imposing user taxes on businesses that benefit from tourism.

The Ste. Genevieve Democrat, who is serving his second term as chairman of the House committee that deals with tourism issues, said he was prompted to draft the bill because of suggestions from House Budget Chairman Chris Kelly that the division might best be funded from a source besides state general revenue.

Last month Kelly offered a variety of cuts in areas where he believes the state does not have to be involved as a way of generating additional revenue for elementary and secondary education in Missouri.

Presently, the state provides $6.5 million a year for funding the Division of Tourism.

Fallert said he was surprised when Kelly proposed ending state support for the tourism division. "It was kind of a blind side," said Fallert.

Tourism is Missouri's second largest industry. Fallert said the division really needs more money instead of less.

Under Fallert's bill, which he called "a self-imposed tax on the tourism industry," between $12 million and $14 million could be generated each year.

"Basically we want to see that we are going to be financed rather than have less money," said Fallert. "We are taking it as an investment in our state that will be returned many times over.

"And, to a large degree, we are talking about taxing out-of-state people."

Fallert said he plans to meet with representatives of businesses that will have to collect the tax. He said that once they understand long-term benefits to their businesses they will support the concept.

Fallert said even though the Division of Tourism needs additional funding there is no way it can expect to receive any more money from general revenue in the foreseeable future. Fallert said if the tax is imposed he would hope that most of the present state funding could stay intact.

The idea of imposing the taxes on the tourism industry was proposed by the Missouri Travel Industry Council. Members of that group presented it to the Division of Tourism, whose members contacted Fallert about possibly filing a bill.

"I think we're going to have to do some creative financing somewhere, somehow down the line so there is more money for things like tourism," said Fallert. "Tourism is a basic and important function of state government because it is one of the few money-making divisions that Missouri has.

"If for no other reason, the state needs to fund tourism because every other state in the nation spends money on tourism."

Of the $6.5 million budgeted for tourism now, about $4 million is set aside for advertising and promotion. A lot of that spending is for cost-sharing ads with local entities.

If the tax were approved, Fallert said he would hope the additional money could be used to supplement state general revenue appropriations.

But he said it is unlikely. "We are hoping for that, realizing if we get that new money we would probably be cut out of general revenue," said Fallert.

The tourism taxes are still being worked out; however, some of the initial proposals would be: 1 percent on admissions to amusement parks, boat and raft rentals, racing events, bus tours, and car rentals; three-tenths of a percent for hotels, motels, and private campgrounds; .15 of 1 percent on all restaurants in the state; and a fee on admissions to other tourist attractions like music shows in Branson.

Most sporting events and attractions run by governmental entities would be exempt from the tax.

On Monday afternoon Fallert met with a group active in the tourism industry to seek input on his bill.

"We don't want to make a lot of waves with people involved in tourism. We are trying to get them to give us input on this," explained Fallert. "This whole idea has come up kind of sudden and we are trying to get as much input as we can from everyone who is involved.

"We are not trying to push anything on anybody. Hopefully, they will see in the long run where it will help them."

Fallert said he hopes to file his bill before the end of the week.