FISCAL NOTE

Date Requested: March 17, 2017
Time Requested: 11:15 AM
Agency: Association of Counties, WV
CBD Number: Version: Bill Number: Resolution Number:
2241 Introduced SB310
CBD Subject:


FUND(S):

hotel occupancy tax - county funds

Sources of Revenue:

Other Fund County Funds

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    State tax law imposes a 6% hotel occupancy tax as appropriate under circumstances where consideration was paid for the accommodation. Therefore, based on the facts and applicable law in this case, Defendant Mountaineer Park had a duty to collect a 6% hotel occupancy tax from those who occupied its complimentary rooms that were provided to patrons who used the mailed coupons given to them by Mountaineer Park. It is the further conclusion of the court that WV Code 29-22C-26
    does not preclude a local privilege tax from being collected and remitted to the County, WV Code 7-18-8.
    
    (Conclusion from Judge Ronald Wilson in the Circuit Court of Hancock County, Sheriff Fletcher v. Mountaineer Park, Inc.)
    
    Hancock County filed suit because Mountaineer Park was refusing to collect hotel occupancy tax on "over 8100 hotel rooms each month that are provided to gaming patrons under the players reward club." (Quote from the Court Order)
    
    The order further states that the parties are to "engage in meaningful talks to try to reach an agreement." That has been done and a 5-year agreement was put into place.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 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):


    It is very difficult to gauge the cost of complementary rooms for which no hotel occupancy tax is collected. When the court case was filed, Hancock County was losing approximately 75% of what it should have been collecting due to the number of comped rooms. It is hard to determine the number of complementary rooms provided by hotels and casino hotels. If they are not charging the hotel occupancy tax, the County and the Convention & Visitors Bureau are not receiving the proceeds from that room. Those proceeds have specific purposes for the promotion of tourism (50%) and the other 50% is must be used "to plan, construct, maintain or acquire arenas, auditoriums, civic centers and convention centers, public parks, recreation facilities, and promotion of the arts, among other things." (Quote is from the Court Order)



Memorandum


    



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