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Missouri
Association
of Convention & Visitor Bureaus
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MACVB Intranet |
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BENEFITS
OF RSMo 620.467 The
following is a partial list of the benefits of RSMo 620.467/H.B. 188. Those
that are particularly important in light of the proposed
budget cuts are listed in bold. 1.
It provides adequate funding for the Division of Tourism
within a reasonable time frame, allowing the Division to be
competitive with other states in promoting tourism. 2.
It takes the Division of Tourism out of the fight for general
revenue funds. 3.
It DOES NOT increase taxes. 4.
It does not take existing money from general revenue - only a
percentage of the growth in sales taxes generated by the
travel industry. 5.
It points out to elected officials the tax contribution of
businesses that derive all or a significant portion of their
revenues from the travel industry. 6.
It united the industry behind a plan that does not cause undo
burden on any single segment of the travel industry. 7.
Accountability of the Division of Tourism is built into the
plan - if advertising efforts are ineffective, the budget does
not grow. 8.
It increases sales tax revenue to the State of Missouri. The
State keeps 100 percent of all sales tax revenue generated by
the 17 SIC codes prior to 1992. The State keeps 100 percent of
the first three percent of sales tax growth from these same 17
SIC codes. The State keeps 50 percent of the sales tax growth
after the first three percent of growth from these 17 SIC
codes for the next $6 million in growth (due to the $3 million
per year cap on the increase in the Division's budget). Then
the State keeps 100 percent of all sales tax growth from these
17 SIC codes after the $3 million per year cap has been
reached. The way the math works, the Division of Tourism will
never get more than 20 percent of the growth in sales tax
revenues from these 17 SIC codes. The State will keep at least
80 percent. 9.
There are many other businesses which are not covered by the
17 SIC codes identified in RSMo 620.467/H.B. 188 that derive a significant
portion of their revenues from travel expenditures (retailing,
to mention just one). The State gets 100 percent of sales tax
growth in these businesses. 10.
It increases other tax revenue to the State of Missouri by
creating jobs and new business, which creates additional state
income tax revenues from businesses and individuals. 11.
It provides a common sense approach of re-investing
advertising dollars in a major growth industry to keep it
growing. This is particularly important in a climate of
decreasing state revenues. 12.
It allows the Division of Tourism to offer cooperative
advertising programs to travel industry partners - further
stretching advertising dollars to the benefit of the state and
local communities while stimulating sales tax growth.
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This page last modified on 09/15/02 .
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