Date Requested: February 18, 2015
Time Requested: 12:57 PM
Agency: Association of Counties
CBD Number: Version: Bill Number: Resolution Number:
3114 Introduced SB512
CBD Subject: County Officials


FUND(S):

Hotel Occupancy Tax/County Govt & CVBs

Sources of Revenue:

Other Fund county revenue/CVB revenu

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This measure will reduce hotel occupancy tax revenue to county government and convention & visitors bureaus (CVBs). For example, a hotel that is part of recent court case provided 80,000 plus complimentary rooms in 2014 and did not collect the hotel occupancy tax for those rooms. The county & CVB received $137,527 in hotel occupancy tax from that hotel in 2014. In 2008, the same hotel comped only 10,000 rooms but from its other rooms collected $378,533 in hotel occupancy tax. The difference between hotel occupancy tax collection in 2008 & 2014 due to number of comped rooms is $241,006.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost -241,006 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The hotel occupancy tax has specific uses by county government including promotion of tourism, CVBs receive 50% of the hotel occupancy tax, If the number of comped rooms continue to be in the 70% range annually, both the area CVBs and county government will see an annual loss and decline in services for which the hotel occupancy tax is dedicated.



Memorandum


    It can be assumed that the increased gaming revenue that goes to the county due to guests that occupy the comped rooms may defray the loss of hotel occupancy tax revenue. These are unknowns: would those guests be there if the rooms were not comped? Would they object to paying the taxes on the rooms even if they do not pay for the rooms themselves? Would paying those taxes be a deterrent to staying in a comped room?



    Person submitting Fiscal Note: Patricia Hamilton
    Email Address: patti@wvaco.org