Title: House Bill 540-Second Edition
Category: Introduced Bill 2005

General Assembly of North Carolina	Session 2005

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
H	2
HOUSE BILL 540
Committee Substitute Favorable 4/5/05

Short Title:	Halifax and Roanoke Rapids Occupancy Taxes. | (Local)
Sponsors: |
Referred to: |
March 9, 2005

A BILL TO BE ENTITLED
AN ACT to amend the halifax county tourism and development tax and to implement a tourism and development tax for the city of roanoke rapids.
The General Assembly of North Carolina enacts:
PART I.  HALIFAX COUNTY OCCUPANCY TAX
SECTION 1.1.  Chapter 377 of the 1987 Session Laws reads as rewritten:
"Section 1. Occupancy tax. (a)  Authorization and scope. – The Halifax County Board of Commissioners may  levy a room occupancy tax of 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 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.
(a1)	Authorization of additional tax. – In addition to the tax authorized by subsection (a) of this section, the Halifax County Board of Commissioners 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) of this section. The levy, collection, administration, and repeal of the tax authorized by this subsection must be in accordance with the provisions of this section. Halifax County 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 – A tax levied under this section must be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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. – Halifax County must, on a quarterly basis, remit the net proceeds of the occupancy tax to the Halifax County Tourism Development Authority. The Authority must use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in Halifax County and must use the remainder for tourism‑related expenditures.
The following definitions apply to 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 first five hundred thousand dollars ($500,000) of the 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 Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in the county by attracting tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
		
Sec. 2. Tourism Development Authority. (a)  Appointment and membership. – When the Board of Commissioners adopts a resolution levying a room occupancy tax under this act, it must 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 resolution must provide for the membership of the Authority including the members' qualifications and terms of office, and for the filling of vacancies on the Authority. At least one‑fifth of the members must be individuals who are affiliated with businesses that collect the tax in the county, and at least three‑fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the county. The Authority must designate one member  as chair and one member as treasurer.
The Authority must meet at the call of the chair and must adopt rules of procedure to govern its meetings. 
(b)	Duties. – The Authority must expend the net proceeds of the tax levied under this act for the purposes provided in Section 1 of this act. The Authority must 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 must report  at the close of the fiscal year to the Board of County Commissioners on its receipts and expenditures  for the year in such detail as the Board may require.
Sec. 3.  This act is effective upon ratification."
SECTION 1.2.  G.S. 153A‑155(g) reads as rewritten:
"(g)	This section applies only to Alleghany, Anson, Brunswick, Buncombe, Cabarrus, Camden, Carteret, Craven, Cumberland, Currituck, Dare, Davie, Durham, Granville, Halifax, Madison, Montgomery, Nash, New Hanover, Pender, Person, Randolph, Richmond, Rowan, Scotland, Stanly, Transylvania, Tyrrell, Vance, and Washington Counties, and to the Township of Averasboro in Harnett County."
PART II.	CITY OF ROANOKE rapids OCCUPANCY TAX
SECTION 2.1.  Occupancy tax. – (a) Authorization and Scope. – The Roanoke Rapids City Council may levy a room occupancy tax of up to 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 city 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.
SECTION 2.1.(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.
SECTION 2.2.(a)  Distribution and Use of Tax Revenue. – The City of Roanoke Rapids shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Halifax County Tourism Development Authority.  The Halifax County Tourism Development Authority must hold the funds in a separate account and administer them separately from proceeds of the Halifax County occupancy tax.  The Authority shall use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in the City of Roanoke Rapids and shall use the remainder for tourism‑related expenditures in the City of Roanoke Rapids.
The following definitions apply in this subsection:
(1)	Net proceeds. – Gross proceeds less the cost to the city 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, promote and support the Roanoke Rapids entertainment district, 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 Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a city or to attract tourists or business travelers to the city. The term includes tourism‑related capital expenditures.
SECTION 2.2.(b)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Roanoke Rapids City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the city council may require.
SECTION 2.3.  G.S. 160A‑215(g) reads as rewritten:
"(g)	This section applies only to Beech Mountain District W, to the Cities of Gastonia, Goldsboro, Greensboro, High Point, Kings Mountain, Lexington, Lincolnton, Lumberton, Monroe, Mount Airy, Roanoke Rapids, Shelby, Statesville, Washington, and Wilmington, to the Towns of Beech Mountain, Blowing Rock, Carolina Beach, Carrboro, Franklin, Kure Beach, Jonesville, Mooresville, North Topsail Beach, Selma, Smithfield, St. Pauls, Wilkesboro, and Wrightsville Beach, and to the municipalities in Avery and Brunswick Counties."
PART III.  EFFECTIVE DATE
SECTION 3.  This act is effective when it becomes law. Halifax County must ensure that the membership of the Tourism Development Authority is in compliance with the requirements of this act on or before January 1, 2006.

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