GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 417

Short Title:  Modify Security Deposit Tax.	(Public)
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Sponsors: Representatives Lilley; Flaherty and Buchanan.
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Referred to:  Commerce.
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March 2, 1989

A BILL TO BE ENTITLED
AN ACT TO CLARIFY TAX ON SECURITY DEPOSITS CHARGED TO TRANSIENTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.4(3) reads as rewritten:
"(3)	Operators of hotels, motels, tourist homes, tourist camps, and similar type businesses and persons who rent private residences and cottages to transients are considered retailers under this Article.  There is levied upon every such retailer a tax of three percent (3%) of the gross receipts derived from the rental of any room or rooms, lodgings, or accommodations furnished to transients for a consideration.  This tax does not apply to any private residence or cottage that is rented for less than 15 days in a calendar year or to any room, lodging, or accommodation supplied to the same person for a period of 90 or more continuous days.
As used in this subdivision, the term ‘persons who rent to transients' means (i)	owners of private residences and cottages who rent to transients and (ii) rental agents, including ‘real estate brokers' as defined in G.S. 93A-2, who rent private residences and cottages to transients on behalf of the owners.  If a rental agent is liable for the tax imposed by this subdivision, the owner is not liable.
As used in this subdivision, the term ‘gross receipts' does  not include money held separately in trust as security to pay for damages and cleaning of premises."
Sec. 2.  This act shall become effective July 1, 1989, and applies to payments for security deposits made on or after that date.