Brief (1)
HB 2414 would establish the Kansas Tourism Advertising Fund (KTAF) to finance advertising Kansas tourism opportunities to potential tourists within and outside Kansas. The bill provides a mechanism for revenues to be transferred from the State General Fund to the KTAF. The Secretary of Revenue would determine the total amount of Kansas income and sales taxes paid by certain classifications of businesses, such as hotels, restaurants, and parks, for tax years 2001 and 2002. This data would be used to determine the amount by which tax revenues increased between the two tax years. Beginning July 1, 2003, 50.0 percent of the increase in excess of 3.0 percent over the previous taxable year would be annually transferred from the State General Fund to the KTAF.
Background
The Executive Director of Travel Industry Association (TIAK) of Kansas and Legislative Counsel, Kansas Restaurant and Hospitality Association testified in support of the bill. The Executive Director of TIAK pointed out that the plan is performance driven, provides accountability, and fluctuates appropriately with the economy. The Legislative Counsel, Kansas Restaurant and Hospitality Association, said moneys to advertise Kansas tourism opportunities will generate revenues for business in Kansas.
There were no opponents.
The House Committee amendment was technical.
The Kansas Department of Revenue indicates that HB 2414 would begin to have a fiscal effect in FY 2004, when annual transfers would begin to be made from the State General Fund to the KTAF of 50.0 percent of the increase in certain tax revenues from 2001 and 2002 in excess of a 3.0 percent growth. Based on sales tax data, the Department has indicated that if the bill had been in effect July 1, 1999, there would have been a transfer to the KTAF of $3.6 million because the increase in FY 1999 was 6.0 percent over FY 1998. FY 2000 applicable sales tax receipts did not exceed 3.0 percent of FY 1999 receipts. The Department does not have data from the Kansas income tax to use in developing an estimate, but it is assumed the income tax data would have a significant effect on the amount transferred to the new fund. The Department would require additional staff, because the agency does not currently track all of the required data. The cost of the additional positions is not available at this time.
The Department of Commerce and Housing estimates that the bill would have no fiscal effect on its agency until FY 2004, at which time expenditures from the KTAF would be budgeted equal to the revenue available, as certified by the Secretary of Revenue.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi