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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
H D
HOUSE DRH30618-SVx-16D* (04/25)
Short Title: Henderson County Occupancy Tax Changes. |
(Local) |
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Sponsors: |
Representative McGrady. |
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Referred to: |
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A BILL TO BE ENTITLED
AN ACT to support the state theater of north carolina known as the flat rock playhouse.
The General Assembly of North Carolina enacts:
SECTION 1. Sections 5 and 6 of Chapter 172 of the 1987 Session Laws, as amended by Chapter 55 of the 1991 Session Laws and by Section 21(p) of S.L. 2007-527, read as rewritten:
"Sec. 5. Occupancy Tax. (a) Authorization
and Scope. - The Board of Commissioners of Henderson County may by
resolution, after not less than 10 days' public notice and after a public
hearing held pursuant thereto, levy a room occupancy and tourism
development tax of no less than three percent (3%) nor more than five
percent (5%) 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(3).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 Board of Commissioners of Henderson County may levy a room occupancy and tourism development tax of one percent (1%) 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 shall be in accordance with the provisions of this section. Henderson County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Collection.
Every operator of a business subject to the tax levied under this act 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 county. 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 county shall design, print, and furnish to all
appropriate businesses and persons in the county the necessary forms for filing
returns and instructions to ensure the full collection of the tax.
(c) 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. The county
shall administer a tax levied under this act. A tax levied under this act is
due and payable to the county finance officer in monthly installments on or
before the 20th 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 20th day of each month, prepare and render a return on a form
prescribed by the county. 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 county finance officer 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 an additional tax, as a penalty, of one percent
(1%) of the tax due for each day's omission up to 30 days, with a minimum
penalty of twenty-five dollars ($25.00). 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 ten percent (10%) of the tax and penalty due in addition to any
other penalty, with an additional tax of ten percent (10%) 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 tax penalties imposed by
this subsection.
Any person who willfully attempts in any manner to evade a
tax or penalty imposed under this act or who willfully fails to pay the tax or
penalty 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) Use of Tax Revenue. - The county shall, on a quarterly basis, remit the net proceeds of the room occupancy and tourism development tax levied under this act to the Henderson County Tourism Development Authority. The Authority shall use at least two-thirds of the funds remitted to it under this subsection to promote travel and tourism in Henderson County and shall use the remainder for tourism-related expenditures.
(e1) Definitions. - The following definitions apply in this section:
(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 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 entity responsible for expending the net proceeds of the tax, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a county or to attract tourists or business travelers to the county. The term includes tourism-related capital expenditures.
shall place the net proceeds collected from a tax levied
under this act in a special Travel and Tourism Fund. Revenue in this fund may
be used only to promote travel and tourism in the county. This fund will be
administered by the Henderson Travel and Tourism Committee. As used in this
subsection, "net proceeds" means gross proceeds less five percent
(5%) of the gross proceeds which the county may retain to defray the cost of
administering and collecting the tax.
The scope of promotion of travel and tourism in the county
may include the following:
(1) Contracting
with any person, firm, or agency to advise and assist in travel and tourism
promotion.
(2) Advertising
via appropriate media.
(3) Assisting
in the initial funding and possible annual subsidy of a fine arts center or
other similar facility which could logically be expected to promote tourism in
the county.
(4) Promoting
special events which would bring tourists to the county.
(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.
A tax levied under this act may be repealed by a resolution adopted by the
board of commissioners of the county. Repeal of a tax levied under this act
does not affect a liability for a tax that 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.
"Sec. 6. Henderson Travel and Tourism
Committee.Tourism Development Authority. (a) Appointment and Membership.
- When the board of commissioners adopts a resolution levying a room
occupancy tax under subsection (a1) of this Section 5 of this act,
it shall also adopt a resolution creating the Henderson Travel and Tourism
Committee, Tourism Development Authority, which shall be a public
authority under the Local Government Budget and Fiscal Control Act. The
resolution adopted by the Board of Commissioners 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
shall be individuals who are affiliated with businesses that collect the tax in
the county, and at least one-half of the members shall be individuals who are
currently active in the promotion of travel and tourism in the county.
The Committee shall consist of nine voting members as
follows:
(1) Four
members who are registered to vote in Henderson County, appointed by the
Henderson County Board of Commissioners;
(2) Four
members who are registered to vote in Henderson County, appointed by the
Hendersonville City Council; and
(3) The
President of the Greater Hendersonville Chamber of Commerce, or his designee,
to serve ex officio.
The board of commissioners shall designate one member of the Committee
Authority as chair and shall determine the compensation, if any, to
be paid to members of the Committee.Authority. The Committee Authority
shall meet at the call of the chair and shall adopt rules of procedure to
govern its meetings. The finance officer for Henderson County shall be the ex
officio finance officer of the Committee.Authority. The
Committee shall administer the Travel and Tourism Fund as provided in Section
1(e) of this act.
(b) Duties. - The Authority shall expend the net proceeds of the tax levied under subsections (a) and (a1) of Section 5 of this act for the purposes provided in Section 5 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 Committee 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 2. G.S. 153A-155(g) reads as rewritten:
"(g) Applicability. - Subsection (c) of this section applies to all counties and county districts that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection (c) supersedes that provision. The remainder of this section applies only to Alleghany, Anson, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret, Caswell, Chatham, Cherokee, Chowan, Clay, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Forsyth, Franklin, Granville, Halifax, Haywood, Henderson, Jackson, Madison, Martin, McDowell, Montgomery, Moore, Nash, New Hanover, New Hanover County District U, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Swain, Transylvania, Tyrrell, Vance, Washington, and Wilson Counties, to Surry County District S, to Watauga County District U, to Wilkes County District K, to Yadkin County District Y, and to the Township of Averasboro in Harnett County and the Ocracoke Township Taxing District."
SECTION 3. This act is effective when it becomes law.