The bill proposes the addition of a new section, 94.456, to chapter 94 of the Revised Statutes of Missouri, which allows cities with populations between eight thousand and nine thousand, located in counties with populations between sixty thousand and seventy thousand, to impose a transient guest tax. This tax would apply to charges for sleeping rooms paid by transient guests—defined as individuals occupying hotel or motel rooms for thirty-one days or less. The governing body of the city can set the tax rate at a maximum of five percent per occupied room per night, which must be stated separately from other charges and taxes. The revenue generated from this tax is designated for promoting tourism and related economic development. Before the tax can take effect, the governing body of the county must present the proposal to the city's voters during an election. The ballot will ask whether the city should impose the tax, specifying the percentage rate and its intended use for tourism promotion. If a majority of voters approve the tax, it will become effective at the beginning of the second calendar quarter following the election. If the proposal is rejected, it cannot be implemented unless it is resubmitted and subsequently approved by the voters.

Statutes affected:
Introduced (6168H.01): 94.456