FISCAL NOTE

Date Requested: February 22, 2016
Time Requested: 12:07 PM
Agency: Association of Counties
CBD Number: Version: Bill Number: Resolution Number:
2838 Introduced SB647
CBD Subject: Counties, Municipalities, Taxation


FUND(S):

Hotel occupancy taxes

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    The best example is to use Mountaineer Resort in Hancock County. The county imposes a 6% hotel occupancy tax. The county keeps 3% and CVB gets 3%. Mointaineer comps about 70% of its room nights annually. They do not collect the county hotel occupancy tax on the comped rooms. This causes a loss to the county and CVB of approximately $400,000. However, a settlement of a court case in this issue provided about $200,000, split between the county and the CVB. This agreement is in place for five years and has four years left before renegotiation. This bill would effectively end the agreement at the end of the 5 year period. Comped rooms have the same effect of loss of hotel occupancy tax in any county but by far Mountaineer Resort comps the most rooms.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost -400,000 -400,000 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):


    This amount represents what one county has lost annually until they took it to court and settled for an agreed upon amount. The county was not receiving hotel occupancy tax from comped rooms and the state is not receiving sales tax.



Memorandum


    



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