GENERAL ASSEMBLY OF NORTH CAROLINA
1997 SESSION
S.L. 1997-364
The General Assembly of North Carolina enacts:
Section 1. Brunswick County occupancy tax. (a) Authorization and scope. The Brunswick County Board of Commissioners may levy a room occupancy tax of one percent (1%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the county that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3) and from the rental of private residences and cottages within the county that are exempt from the sales tax imposed under G.S. 105-164.4(a)(3) solely because they are rented for less than 15 days. This tax is in addition to any State or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose, or to accommodations subject to a municipal room occupancy tax at the rate of six percent (6%).
(b) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A-155. The penalties provided in G.S. 153A-155 apply to a tax levied under this section.
(c) Distribution and use of tax revenue. Brunswick County shall, on a monthly basis, remit the net proceeds of the occupancy tax to the Brunswick Tourism Development Authority. The Authority shall use the funds remitted to it under this subsection to promote travel and tourism in Brunswick County. No more than ten percent (10%) of the funds remitted to the Authority under this subsection may be used for the Authority's administrative expenses, including salaries and benefits.
The following definitions apply in this subsection:
(1) Net proceeds. - Gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the gross proceeds.
(2) Promote travel and tourism. - To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area; the term includes administrative expenses incurred in engaging in the listed activities.
Section 2. Brunswick Tourism Development Authority. (a) Appointment and membership. When the board of commissioners of Brunswick County adopts a resolution levying a room occupancy tax under Section 1 of this act, it shall also adopt a resolution creating a county Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The Authority shall have 10 members appointed by the Brunswick County Commissioners as follows:
(1) Five individuals who are currently involved in the promotion of travel and tourism, selected by the Brunswick County Commissioners.
(2) Five individuals selected jointly by the South Brunswick Islands Chamber of Commerce and the Southport-Oak Island Chamber of Commerce.
The resolution shall provide for the members' terms of office and for the filling of vacancies on the Authority. The board of commissioners shall designate one member of the Authority as chair. Members of the Authority shall serve without compensation.
The Authority shall meet monthly and shall adopt rules of procedure to govern its meetings. The Finance Officer for Brunswick County shall be the ex officio finance officer of the Authority.
(b) Duties. The Authority shall expend the net proceeds of the tax levied under Section 1 of this act to promote travel and tourism in Brunswick County as provided in Section 1 of this act. The Authority shall promote travel, tourism, and conventions in the county.
(c) Reports. The Authority shall report quarterly and at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
Section 3. County administrative provisions. Section 3(b) of S.L. 1997-102, as amended by Section 2 of S.L. 1997-255 and Section 2 of ratified House Bill 337, 1997 General Assembly, is further amended by adding the phrases "Brunswick," and "Person," in their proper alphabetical order.
Section 4. Conforming change. Section 2(a2) of Chapter 664 of the 1991 Session Laws, as enacted by Chapter 617 of the 1993 Session Laws, is repealed.
Section 5. Municipal administrative provisions. (a) Article 9 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A-215. Uniform provisions for room occupancy taxes.
(a) Scope. - This section applies only to municipalities the General Assembly has authorized to levy room occupancy taxes. For the purpose of this section, the term 'city' means a municipality.
(b) Levy. - A room occupancy tax may be levied only by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto. A room occupancy tax shall become effective on the date specified in the resolution levying the tax. That date must be the first day of a calendar month, however, and may not be earlier than the first day of the second month after the date the resolution is adopted.
(c) Collection. - Every operator of a business subject to a room occupancy tax shall, on and after the effective date of the levy of the tax, collect the tax. The tax shall be collected as part of the charge for furnishing a taxable accommodation. The tax shall be stated and charged separately from the sales records and shall be paid by the purchaser to the operator of the business as trustee for and on account of the taxing city. The tax shall be added to the sales price and shall be passed on to the purchaser instead of being borne by the operator of the business. The taxing city shall design, print, and furnish to all appropriate businesses and persons in the city the necessary forms for filing returns and instructions to ensure the full collection of the tax. An operator of a business who collects a room occupancy tax may deduct from the amount remitted to the taxing city a discount equal to the discount the State allows the operator for State sales and use tax.
(d) Administration. - The taxing city shall administer a room occupancy tax it levies. A room occupancy tax is due and payable to the city finance officer in monthly installments on or before the 15th day of the month following the month in which the tax accrues. Every person, firm, corporation, or association liable for the tax shall, on or before the 15th day of each month, prepare and render a return on a form prescribed by the taxing city. The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied. A room occupancy tax return filed with the city finance officer is not a public record and may not be disclosed except in accordance with G.S. 153A-148.1 or G.S. 160A-208.1.
(e) Penalties. - A person, firm, corporation, or association who fails or refuses to file a room occupancy tax return or pay a room occupancy tax as required by law is subject to the civil and criminal penalties set by G.S. 105-236 for failure to pay or file a return for State sales and use taxes. The governing board of the taxing city has the same authority to waive the penalties for a room occupancy tax that the Secretary of Revenue has to waive the penalties for State sales and use taxes.
(f) Repeal or Reduction. - A room occupancy tax levied by a city may be repealed or reduced by a resolution adopted by the governing body of the city. Repeal or reduction of a room occupancy tax shall become effective on the first day of a month and may not become effective until the end of the fiscal year in which the resolution was adopted. Repeal or reduction of a room occupancy tax does not affect a liability for a tax that was attached before the effective date of the repeal or reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal or reduction."
(b) This section applies only to the municipalities in Brunswick County.
Section 6. Shallotte occupancy tax. (a) Authorization and scope. The Board of Aldermen of the Town of Shallotte may levy a room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3) and from the rental of private residences and cottages within the town that are exempt from the sales tax imposed under G.S. 105-164.4(a)(3) solely because they are rented for less than 15 days. This tax is in addition to any State or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
(b) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in G.S. 160A-215 apply to a tax levied under this section.
(c) Distribution and use of tax revenue. The Town of Shallotte shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Shallotte Tourism Development Authority. The Authority shall use at least one-half of the funds remitted to it under this subsection to promote travel and tourism in Shallotte and shall use the remainder for tourism-related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. - Gross proceeds less the cost to the town of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.
(2) Promote travel and tourism. - To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area; the term includes administrative expenses incurred in engaging in the listed activities.
(3) Tourism-related expenditures. - Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in the town or to attract tourists or business travelers to the town. The term includes tourism-related capital expenditures.
Section 7. Shallotte Tourism Development Authority. (a) Appointment and membership. When the Board of Aldermen of the Town of Shallotte adopts a resolution levying a room occupancy tax under Section 6 of this act, it shall also adopt a resolution creating a town Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The Authority shall have five members appointed by the board of aldermen. The resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority. At least one-third of the members must be individuals who are affiliated with businesses that collect the tax in the town and at least three-fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The Board of Aldermen of the Town of Shallotte shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority.
The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for the Town of Shallotte shall be the ex officio finance officer of the Authority.
(b) Duties. The Authority shall expend the net proceeds of the tax levied under Section 6 of this act for the purposes provided in Section 6 of this act. The Authority shall promote travel, tourism, and conventions in the town, sponsor tourist-related events and activities in the town, and finance tourist-related capital projects in the town.
(c) Reports. The Authority shall report quarterly and at the close of the fiscal year to the Board of Aldermen of the Town of Shallotte on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
Section 8. Caswell Beach occupancy tax changes. Section 1 of Chapter 664 of the 1991 Session Laws reads as rewritten:
"Section 1. Caswell Beach Occupancy Tax. (a)
Authorization and Scope. The Board of Commissioners of the Town of
Caswell Beach may by resolution, after not less than 10 days' public notice
and a public hearing held pursuant thereto, levy a room occupancy tax of up
to three percent (3%) of the gross receipts derived from the rental of
accommodations within the town that are subject to sales tax imposed by the
State under G.S. 105-164.4(a)(3) and from the rental of private residences and
cottages within the town that are exempt from the sales tax imposed under G.S.
105-164.4(a)(3) solely because they are rented for less than 15 days.
(a1) Authorization of Additional Tax. In addition to the tax authorized by subsection (a) of this section, the Board of Commissioners of the Town of Caswell Beach may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section. The Town of Caswell Beach may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in G.S. 160A-215 apply to a tax levied under this section.
Collection. Every operator of a business subject to the
tax levied by this act shall, on and after the effective date of the tax,
collect the tax. This tax shall be collected as part of the charge for
furnishing a taxable accommodation. The tax shall be stated and charged
separately from the sales records, and shall be paid by the purchaser to the
operator of the business as trustee for and on account of the town. The
occupancy tax levied under this act shall be added to the sales price and shall
be passed on to the purchaser instead of being borne by the owner of the
business. The town shall design, print, and furnish to all appropriate
businesses in the town the necessary forms for filing returns and instructions
to ensure the full collection of the tax.
(c) Administration.
The town shall administer the occupancy tax levied under this act. A tax
levied under this act is due and payable to the town tax collector in monthly
installments on or before the fifteenth day of the month following the month in
which the tax accrues. Every person, firm, or corporation liable for the
tax shall, on or before the fifteenth day of each month, prepare and render a
return on a form prescribed by the town. The return shall state the total
gross receipts derived in the preceding month from rentals upon which the tax
is levied.
A return filed with the town tax collector under this act
is not a public record as defined by G.S. 132-1 and may not be disclosed except
as required by law.
(d) Penalties.
A person, firm, corporation, or association who fails or refuses to file the
return required by this act shall pay a penalty of ten dollars ($10.00) for
each day's omission. In case of failure or refusal to file the return or
pay the tax for a period of 30 days after the time required for filing the return
or for paying the tax, there shall be an additional tax, as a penalty, of five
percent (5%) of the tax due in addition to any other penalty, with an
additional penalty of five percent (5%) for each additional month or fraction
thereof until the tax is paid. The board of commissioners may, for good
cause shown, compromise or forgive the additional tax penalties imposed by this
subsection.
Any person who willfully attempts in any manner to evade a
tax imposed under this act or who willfully fails to pay the tax or make and
file a return shall, in addition to all other penalties provided by law, be
guilty of a misdemeanor and shall be punishable by a fine not to exceed one
thousand dollars ($1,000), imprisonment not to exceed six months, or both.
(e)(c) Use of Proceeds. The town
may use the proceeds of a tax levied under this act subsection (a) of
this section only for tourism-related expenditures. As used in this act,
section, the term 'tourism-related expenditures' includes the
following types of expenditures: criminal justice system, fire
protection, public facilities and utilities, health facilities, solid waste and
sewage treatment, and the control and repair of waterfront erosion. These
funds may not be used for services normally provided by the town on behalf of
its citizens unless these services promote tourism and enlarge its economic
benefits by enhancing the ability of the town to attract and provide for
tourists.
The town may use the proceeds of a tax levied under subsection (a1) of this section only for beach renourishment and protection.
(f) Effective
Date of Levy. A tax levied under this act shall become effective on the
date specified in the resolution levying the tax. That date must be the
first day of a calendar month, however, and may not be earlier than the first
day of the second month after the date the resolution is adopted.
(g) Repeal.
The Board of Commissioners of the Town of Caswell Beach may by resolution
repeal a tax levied under this act. Repeal of a tax levied under this act
shall become effective on the first day of a month and may not become effective
until the end of the fiscal year in which the repeal resolution was
adopted. Repeal of a tax levied under this act does not affect a
liability for a tax that was attached before the effective date of the repeal,
nor does it affect a right to a refund of a tax that accrued before the
effective date of the repeal."
Section 9. Holden Beach occupancy tax changes. Section 1 of Chapter 963 of the 1987 Session Laws reads as rewritten:
"Section 1. Occupancy tax. (a) Authorization
and scope. The Holden Beach Town Council may by resolution, after not
less than 10 days' public notice and after a public hearing held pursuant
thereto, levy a room occupancy tax of no more than three percent (3%) of
the gross receipts derived from the rental of any room, lodging, or similar
accommodation furnished by a hotel, motel, inn, or similar place within the
town that is subject to sales tax imposed by the State under G.S. 105-164.4(3)
105-164.4(a)(3) and on the rental of all private residences and
cottages, regardless of whether the residence or cottage is rented for
less than 15 days. This tax is in addition to any State or local sales
tax. This tax does not apply to accommodations furnished by nonprofit
charitable, educational, or religious organizations.
(a1) Authorization of additional tax. In addition to the tax authorized by subsection (a) of this section, the Holden Beach Town Council may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section. The Holden Beach Town Council may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in G.S. 160A-215 apply to a tax levied under this section.
Collection. Every operator of a business subject to the
tax levied under this section shall, on and after the effective date of the
levy of the tax, collect the tax. This tax shall be collected as part of
the charge for furnishing a taxable accommodation. The tax shall be
stated and charged separately from the sales records, and shall be paid by the
purchaser to the operator of the business as trustee for and on account of the
town. The tax shall be added to the sales price and shall be passed on to
the purchaser instead of being borne by the operator of the business. The
town shall design, print, and furnish to all appropriate businesses and persons
in the town the necessary forms for filing returns and instructions to ensure
the full collection of the tax.
(c) Administration.
The town shall administer a tax levied under this section. A tax levied
under this section is due and payable to the Holden Beach tax collector in
monthly installments on or before the 15th day of the month following the month
in which the tax accrues. Every person, firm, corporation, or association
liable for the tax shall, on or before the 15th day of each month, prepare and
render a return on a form prescribed by the town. The return shall state
the total gross receipts derived in the preceding month from rentals upon which
the tax is levied. A return filed with the tax collector under this
section is not a public record as defined by G.S. 132-1 and may not be
disclosed except as required by law.
The tax collector may collect any unpaid taxes levied under
this act section through the use of attachment and garnishment
proceedings as provided in G.S. 105-368 for collection of property taxes.
The tax collector has the same enforcement powers concerning the tax imposed by
this act as does the Secretary of Revenue in enforcing the State sales tax
under G.S. 105-164.30.
(d) Penalties.
A person, firm, corporation, or association who fails or refuses to file the
return required by this section shall pay a penalty of ten dollars ($10.00) for
each day's omission. In case of failure or refusal to file the return or
pay the tax for a period of 30 days after the time required for filing the
return or for paying the tax, there shall be an additional tax, as a penalty,
of five percent (5%) of the tax due in addition to any other penalty, with an
additional tax of five percent (5%) for each additional month or fraction
thereof until the tax is paid.
Any person who willfully attempts in any manner to evade a
tax imposed under this section or who willfully fails to pay the tax or make
and file a return shall, in addition to all other penalties provided by law, be
guilty of a misdemeanor and shall be punishable by a fine not to exceed one
thousand dollars ($1,000), imprisonment not to exceed six months, or
both. The town council may, for good cause shown, compromise or forgive
the penalties imposed by this subsection.
(e)(c) Distribution and use of tax
revenue. The tax collector shall remit the proceeds of this tax to the
town on a monthly basis. The funds received by the town pursuant to
this act proceeds of the tax levied under subsection (a) of this section
shall be allocated to a special fund and used only for tourism-related
expenditures. As used in this act, the term 'tourism-related
expenditures' includes the following types of expenditures: criminal
justice system, fire protection, public facilities and utilities, health
facilities, solid waste and sewage treatment, and the control and repair of
water front erosion. These funds may not be used for services normally
provided by the town on behalf of its citizens unless these services promote
tourism and enlarge its economic benefits by enhancing the ability of the town
to attract and provide for tourists.
The town may use the proceeds of a tax levied under subsection (a1) of this section only for beach renourishment and protection.
(f) Effective
date of levy. A tax levied under this section shall become effective on
the date specified in the resolution levying the tax. That date must be
the first day of a calendar month, however, and may not be earlier than the
first day of the second month after the date the resolution is adopted.
(g) Repeal. A
tax levied under this section may be repealed by a resolution adopted by the
Holden Beach Town Council. Repeal of a tax levied under this section
shall become effective on the first day of a month and may not become effective
until the end of the fiscal year in which the repeal resolution was
adopted. Repeal of a tax levied under this section does not affect a
liability for a tax that was attached before the effective date of the repeal,
nor does it affect a right to a refund of a tax that accrued before the
effective date of the repeal."
Section 10. Ocean Isle Beach occupancy tax changes. Part IX of Chapter 908 of the 1983 Session Laws, as amended by Chapter 985 of the 1983 Session Laws and Chapter 857 of the 1989 Session Laws, as it relates to the Town of Ocean Isle Beach only, is reenacted and rewritten as Section 11 of this act.
Section 11. Ocean Isle Beach occupancy tax. (a) Authorization and scope. The Board of Commissioners of the Town of Ocean Isle Beach may levy a room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3) and from the rental of private residences and cottages, whether or not the residence or cottage is rented for less than 15 days. This tax is in addition to any State or local sales tax.
(b) Authorization of additional tax. In addition to the tax authorized by subsection (a) of this section, the Board of Commissioners of the Town of Ocean Isle Beach may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section. The town council may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(c) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in G.S. 160A-215 apply to a tax levied under this section.
The tax collector may collect any unpaid taxes levied under this section through the use of attachment and garnishment proceedings as provided in G.S. 105-368 for collection of property taxes. The tax collector has the same enforcement powers concerning the tax imposed by this act as does the Secretary of Revenue in enforcing the State sales tax under G.S. 105-164.30.
(d) Distribution and use of tax revenue. The Town of Ocean Isle Beach may use the proceeds of the tax levied pursuant to subsection (a) of this section only for tourism-related expenditures. As used in this section, "tourism-related expenditures" includes any of the following expenditures: criminal justice system, fire protection, public facilities and utilities, health facilities, solid waste and sewage treatment, and the control and repair of waterfront erosion. The term does not include, however, expenditures for services normally provided by the town on behalf of its citizens unless these services promote tourism and enlarge its economic benefits by enhancing the ability of the town to attract and provide for tourists.
The Town of Ocean Isle Beach may use the proceeds of the tax levied pursuant to subsection (b) of this section only for beach renourishment and protection.
Section 12. Sunset Beach occupancy tax changes. Section 1 of Chapter 956 of the 1987 Session Laws reads as rewritten:
"Section 1. Occupancy tax. (a) Authorization
and scope. The Sunset Beach Town Council may by resolution, after not
less than 10 days' public notice and after a public hearing held pursuant
thereto, levy a room occupancy tax of no more than three percent (3%) of
the gross receipts derived from the rental of any room, lodging, or similar
accommodation furnished by a hotel, motel, inn, or similar place within the
town that is subject to sales tax imposed by the State under G.S. 105-164.4(3)
105-164.4(a)(3) and on the rental of all private residences and
cottages, regardless of whether the residence or cottage is rented for
less than 15 days. This tax is in addition to any State or local sales
tax. This tax does not apply to accommodations furnished by nonprofit
charitable, educational, or religious organizations.
(a1) Authorization of additional tax. In addition to the tax authorized by subsection (a) of this section, the Sunset Beach Town Council may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section. The Town of Sunset Beach may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in G.S. 160A-215 apply to a tax levied under this section.
Collection. Every operator of a business subject to the
tax levied under this section shall, on and after the effective date of the
levy of the tax, collect the tax. This tax shall be collected as part of
the charge for furnishing a taxable accommodation. The tax shall be
stated and charged separately from the sales records, and shall be paid by the
purchaser to the operator of the business as trustee for and on account of the
town. The tax shall be added to the sales price and shall be passed on to
the purchaser instead of being borne by the operator of the business. The
town shall design, print, and furnish to all appropriate businesses and persons
in the town the necessary forms for filing returns and instructions to ensure
the full collection of the tax.
(c) Administration.
The town shall administer a tax levied under this section. A tax levied
under this section is due and payable to the Sunset Beach tax collector in
monthly installments on or before the 15th day of the month following the month
in which the tax accrues. Every person, firm, corporation, or association
liable for the tax shall, on or before the 15th day of each month, prepare and
render a return on a form prescribed by the town. The return shall state
the total gross receipts derived in the preceding month from rentals upon which
the tax is levied. A return filed with the tax collector under this section
is not a public record as defined by G.S. 132-1 and may not be disclosed except
as required by law.
The tax collector may collect any unpaid taxes levied under
this act section through the use of attachment and garnishment
proceedings as provided in G.S. 105-368 for collection of property taxes.
The tax collector has the same enforcement powers concerning the tax imposed by
this act as does the Secretary of Revenue in enforcing the State sales tax
under G.S. 105-164.30.
(d) Penalties.
A person, firm, corporation, or association who fails or refuses to file the
return required by this section shall pay a penalty of ten dollars ($10.00) for
each day's omission. In case of failure or refusal to file the return or
pay the tax for a period of 30 days after the time required for filing the
return or for paying the tax, there shall be an additional tax, as a penalty,
of five percent (5%) of the tax due in addition to any other penalty, with an
additional tax of five percent (5%) for each additional month or fraction
thereof until the tax is paid.
Any person who willfully attempts in any manner to evade a
tax imposed under this section or who willfully fails to pay the tax or make
and file a return shall, in addition to all other penalties provided by law, be
guilty of a misdemeanor and shall be punishable by a fine not to exceed one
thousand dollars ($1,000), imprisonment not to exceed six months, or
both. The town council may, for good cause shown, compromise or forgive
the penalties imposed by this subsection.
(e)(c) Distribution and use of tax
revenue. The tax collector shall remit the proceeds of this tax to the
town on a monthly basis. The funds received by the town pursuant to
this act shall be allocated town shall allocate the proceeds of the tax
levied pursuant to subsection (a) of this section to a special fund and used
shall use them only for tourism-related expenditures. As used in
this act, the term 'tourism-related expenditures' includes the following types
of expenditures: criminal justice system, fire protection, public
facilities and utilities, health facilities, solid waste and sewage treatment,
and the control and repair of water front erosion. These funds may not be used
for services normally provided by the town on behalf of its citizens unless
these services promote tourism and enlarge its economic benefits by enhancing
the ability of the town to attract and provide for tourists.
The town may use the proceeds of the tax levied pursuant to subsection (a1) of this section only for beach renourishment and protection.
(f) Effective
date of levy. A tax levied under this section shall become effective on
the date specified in the resolution levying the tax. That date must be
the first day of a calendar month, however, and may not be earlier than the
first day of the second month after the date the resolution is adopted.
(g) Repeal.
A tax levied under this section may be repealed by a resolution adopted by the
Sunset Beach Town Council. Repeal of a tax levied under this section
shall become effective on the first day of a month and may not become effective
until the end of the fiscal year in which the repeal resolution was
adopted. Repeal of a tax levied under this section does not affect a
liability for a tax that was attached before the effective date of the repeal,
nor does it affect a right to a refund of a tax that accrued before the
effective date of the repeal."
Section 13. Yaupon Beach occupancy tax changes. Section 1 of Chapter 820 of the 1991 Session Laws reads as rewritten:
"Section 1. Yaupon Beach Occupancy Tax. (a)
Authorization and Scope. The Board of Commissioners of the Town of Yaupon
Beach may by resolution, after not less than 10 days' public notice and a
public hearing held pursuant thereto, levy a room occupancy tax of up to
three percent (3%) of the gross receipts derived from the rental of
accommodations within the town that are subject to sales tax imposed by the
State under G.S. 105-164.4(a)(3) and from the rental of private residences and
cottages within the town that are exempt from the sales tax imposed under G.S.
105-164.4(a)(3) solely because they are rented for less than 15 days.
(a1) Authorization of Additional Tax. In addition to the tax authorized by subsection (a) of this section, the Board of Commissioners of the Town of Yaupon Beach may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section. The Town of Yaupon Beach may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in G.S. 160A-215 apply to a tax levied under this section.
Collection. Every operator of a business subject to the
tax levied by this act shall, on and after the effective date of the tax,
collect the tax. This tax shall be collected as part of the charge for
furnishing a taxable accommodation. The tax shall be stated and charged
separately from the sales records, and shall be paid by the purchaser to the
operator of the business as trustee for and on account of the town. The
occupancy tax levied under this act shall be added to the sales price and shall
be passed on to the purchaser instead of being borne by the owner of the
business. The town shall design, print, and furnish to all appropriate
businesses in the town the necessary forms for filing returns and instructions
to ensure the full collection of the tax.
(c) Administration.
The town shall administer the occupancy tax levied under this act. A tax
levied under this act is due and payable to the town tax collector in monthly
installments on or before the fifteenth day of the month following the month in
which the tax accrues. Every person, firm, or corporation liable for the
tax shall, on or before the fifteenth day of each month, prepare and render a
return on a form prescribed by the town. The return shall state the total
gross receipts derived in the preceding month from rentals upon which the tax
is levied.
A return filed with the town tax collector under this act
is not a public record as defined by G.S. 132-1 and may not be disclosed except
as required by law.
(d) Penalties.
A person, firm, corporation, or association who fails or refuses to file the
return required by this act shall pay a penalty of ten dollars ($10.00) for
each day's omission. In case of failure or refusal to file the return or
pay the tax for a period of 30 days after the time required for filing the
return or for paying the tax, there shall be an additional tax, as a penalty,
of five percent (5%) of the tax due in addition to any other penalty, with an
additional penalty of five percent (5%) for each additional month or fraction
thereof until the tax is paid. The board of commissioners may, for good
cause shown, compromise or forgive the additional tax penalties imposed by this
subsection.
Any person who willfully attempts in any manner to evade a
tax imposed under this act or who willfully fails to pay the tax or make and
file a return shall, in addition to all other penalties provided by law, be
guilty of a misdemeanor and shall be punishable by a fine not to exceed one
thousand dollars ($1,000), imprisonment not to exceed six months, or both.
(e)(c) Use of Proceeds. The town
may use the proceeds of a tax levied under this act subsection (a) of
this section only for tourism-related expenditures. As used in this
act, the term 'tourism-related expenditures' includes the following types of
expenditures: criminal justice system, fire protection, public facilities
and utilities, health facilities, solid waste and sewage treatment, and the
control and repair of waterfront erosion. These funds may not be used for
services normally provided by the town on behalf of its citizens unless these
services promote tourism and enlarge its economic benefits by enhancing the
ability of the town to attract and provide for tourists.
The town may use the proceeds of a tax levied under subsection (a1) of this section only for beach renourishment and protection.
(f) Effective
Date of Levy. A tax levied under this act shall become effective on the
date specified in the resolution levying the tax. That date must be the
first day of a calendar month, however, and may not be earlier than the first
day of the second month after the date the resolution is adopted.
(g) Repeal. The
Board of Commissioners of the Town of Yaupon Beach may by resolution repeal a
tax levied under this act. Repeal of a tax levied under this act shall
become effective on the first day of a month and may not become effective until
the end of the fiscal year in which the repeal resolution was adopted.
Repeal of a tax levied under this act does not affect a liability for a tax that
was attached before the effective date of the repeal, nor does it affect a
right to a refund of a tax that accrued before the effective date of the repeal."
Section 14. Person County occupancy tax. (a) Authorization and scope. The Person County Board of Commissioners may levy a room occupancy tax of up to five percent (5%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the county that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3).
This tax is in addition to any State or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
(b) Administration. Except as otherwise provided in this section, a tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A-155. The penalties provided in G.S. 153A-155 apply to a tax levied under this section.
(c) Distribution and use of tax revenue. Person County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Person Tourism Development Authority. Of the net proceeds that accrue during the first four years that a tax is levied under this section, the Authority may use up to two-thirds only for the following tourism-related expenditures: (i) constructing or operating the Person County Historical Museum, (ii) developing Lake Mayo for fishing tournaments, skiing tournaments, and other activities designed to attract tourists to the lake from outside the county, and (iii) supporting the May Festival and other festivals designed to attract tourists from outside the county. The Authority shall use the remaining net proceeds that accrue during the first four years that a tax is levied under this section only to promote travel and tourism in Person County.
Of the net proceeds that accrue after this four-year period, the Authority shall use at least two-thirds of the funds remitted to it under this subsection to promote travel and tourism in Person County and shall use the remainder for tourism-related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. - Gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the gross proceeds.
(2) Promote travel and tourism. - To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area; the term includes administrative expenses incurred by the Authority in engaging in the listed activities.
(3) Tourism-related expenditures. - Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in a county or to attract tourists or business travelers to the county. The term includes tourism-related capital expenditures.
Section 15. Person Tourism Development Authority. (a) Appointment and membership. When the board of commissioners adopts a resolution levying a room occupancy tax under Section 14 of this act, it shall also adopt a resolution creating a county Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act.
The Authority shall be composed of six members, three appointed by the Person County Board of Commissioners and three appointed by the Roxboro City Council. One of the three members appointed by each governing body must be an owner or manager of a Person County hotel or motel. The remaining members must be individuals who are currently active in the promotion of travel and tourism in the county. The resolution shall determine the compensation, if any, to be paid to members of the Authority.
The initial terms of the members who are owners or managers of a hotel or motel shall be three years. Each governing body shall designate one of its remaining appointees to serve an initial term of two years and the other to serve an initial term of one year. Thereafter, all terms shall be three years. Vacancies shall be filled in the same manner as original appointments, and members appointed to fill vacancies shall serve for the remainder of the unexpired term.
At its first meeting and at the first meeting of each calendar year, the membership of the Authority shall elect one member to serve as chair until the first meeting of the following calendar year. The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for Person County shall be the ex officio finance officer of the Authority.
(b) Duties. The Authority shall expend the net proceeds of the tax levied under Section 14 of this act for the purposes provided in Section 14 of this act. The Authority shall promote travel, tourism, and conventions in the county, sponsor tourist-related events and activities in the county, and finance tourist-related capital projects in the county.
(c) Reports. The Authority shall report quarterly and at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
Section 16. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 6th day of August, 1997.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives