Authorizes a transient guest tax for tourism purposes in Richmond

2026 Regular Session Introduced by Terry Thompson

Richmond could impose a 2%–5% transient guest tax on lodging to fund local tourism promotion, but voters must approve it before it takes effect.

Referred: Emerging Issues(H)

#cities #towns #andvillages #politicalsubdivisions #taxationandrevenue-salesanduse

Overview

Bill: HB 2434

Session: 2026

Jurisdiction: Missouri

Purpose: Authorize a transient guest tax for tourism purposes in Richmond (city of approximately 5,600–6,300 residents; county seat in a county with 22,000–25,000 residents), expanding the list of Missouri localities eligible to impose a 2%–5% tax on charges for sleeping rooms and related accommodations, subject to voter approval.

Intent and Rationale

Create a dedicated funding source to promote tourism by allowing certain local governments to levy a transient guest tax.

Ensure revenues are used solely for tourism promotion, in addition to existing taxes and charges.

Require voter authorization at a state general, primary, or special election before the tax can take effect.

Key Provisions

Eligible Jurisdictions (as amended): The bill adds Richmond to the list of cities/counties that may impose a transient guest tax, provided the population and county-seat criteria match the statute.

Tax Rate: The levy must be at least 2% and no more than 5% of the per-occupied-room charge for transient guests.

Subjects of Taxation: The tax applies to charges for all sleeping rooms in hotels, motels, bed & breakfast inns, campgrounds, and docking facilities that rent slips for recreational boats used by transients for sleeping.

Use of Proceeds: Revenue must be used exclusively for funding the promotion of tourism by the local government imposing the tax.

Separation of Funds: The tax amount must be shown separately from other charges and taxes.

Voter Approval: The tax may only take effect if the governing body submits a proposal to the voters of the city or county at a state general, primary, or special election, and the proposal is approved.

Affected Entities

Primary: Richmond, Missouri (the city) and potentially its governing body.

Ancillary: Tourists and overnight visitors staying in applicable lodging in Richmond; local lodging businesses (hotels, motels, B&Bs, campgrounds) and docking/ferry facilities with boat slips used by transient guests.

Beneficiaries: Tourism promotion programs and initiatives funded by the tax proceeds.

Timeline and Procedural Notes

Enactment Path: The tax would require public approval via a local election at a general, primary, or special election.

Effective Date: Dependent on voter approval and subsequent administrative actions under the state statutes governing transient guest taxes (no specific date set in the bill itself).

Relation to Existing Law: Repeals and replaces section 67.1360 with a new section that mirrors the structure of existing local transient guest taxes but adds Richmond as an eligible jurisdiction.

Additional Context

Similarity to prior provisions: The bill aligns with other Missouri localities that levy a 2%–5% transient guest tax for tourism promotion, subject to voter approval.

Legislative history: Sponsored by Representative Thompson; co-sponsored by Terry Thompson. Previous related measure referenced as HB 1277 (2025) in supporting materials.

Summary (Plain Language)

HB 2434 would allow Richmond, Missouri, to impose a transient guest tax of 2%–5% on the lodging charges paid by visitors, as part of a broader Missouri framework permitting such taxes in eligible cities/counties. The money collected would go solely to promote tourism and would be shown separately on bills. Before the tax can begin, voters in Richmond must approve the measure in an election. This aligns Richmond with other Missouri communities that authorize similar taxes to support local tourism initiatives.