GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 813*

Short Title:  Cabarrus Occupancy Tax.	(Local)
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Sponsors: Representatives Privette, Barbee, and Loflin.
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Referred to:  Government.
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March 23, 1989

A BILL TO BE ENTITLED
AN ACT AUTHORIZING CABARRUS COUNTY TO LEVY A ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX AND ESTABLISHING A CABARRUS COUNTY TOURISM AUTHORITY.
The General Assembly of North Carolina enacts:
Section 1.  Occupancy Tax Levy.  (a)	Authorization and Scope.  The Cabarrus County Board of Commissioners 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 not 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).  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.
(b)	Collection.  On and after the effective date of the levy of the tax, every operator of a business subject to the tax levied under this act shall 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 on the sales records, and shall be paid by the purchaser to the operator of the business as trustees 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.  The county shall administer a tax levied under this act.  A tax levied under this act is due and payable to the Cabarrus County 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 county.  The return shall state the total gross receipts derived in the county 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 a penalty of fifty dollars ($50.00) 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 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 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.  The board of commissioners may, for good cause shown, compromise or forgive the penalties imposed by this subsection.
(e)  Use and Disposition of Revenue.  Except as otherwise provided in Section 2(c)(2) of this act, Cabarrus County shall remit one hundred percent (100%) of the net proceeds of the occupancy tax to the Cabarrus County Tourism Authority established under Section 2 of this act.  As used in this act, "net proceeds”means gross proceeds less the direct cost to the county of administering and collecting the tax, not to exceed five percent (5%) of the amount collected.
The Authority shall allocate all of the net proceeds of the occupancy tax in a fiscal year, together with all other revenues, if any, received by the Authority from whatever source, the receipt of which by the Authority is hereby authorized, for the development of tourism, support services, tourist-related events, and any other appropriate activities for providing tourism-related facilities or attractions in the county.
The Cabarrus County Finance Officer shall distribute the amounts due the Authority at least monthly.
(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 Cabarrus County Board of Commissioners.  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 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. 2.  Establishment, Appointment, and Duties of Cabarrus County Tourism Authority.  (a)	Establishment and Membership.  When the Cabarrus County Board of Commissioners adopts a resolution levying a room occupancy tax pursuant to this act, it shall establish and create the Cabarrus County Tourism Authority composed of nine members, with seats on the Authority numbered one through nine, all of whom shall be appointed by the board, selected as follows:
(1)	Seats 1, 4, and 7 shall be selected by the board at large and shall include, but not be limited to, at least one member of the board and/or the Cabarrus County Manager;
(2)	Seats 2, 5, and 8 shall be appointed by the board from a list of at least three persons submitted by the Concord-Cabarrus Chamber of Commerce; and
(3)	Seats 3, 6, and 9 shall be appointed by the board from a list of at least three persons submitted to the board by the Kannapolis Chamber of Commerce. 
(b)	Terms of Office.  Except as otherwise provided in the schedule set forth below, the term of office of each member of the Authority shall be three years.  The terms shall be staggered so that after the initial members of the Authority are appointed, three members are appointed each year, implemented as follows:
(1)	Seats 1, 2, and 3 shall be appointed initially for one year, and thereafter for three years;
(2)	Seats 4, 5, and 6 shall be appointed initially for two years, and thereafter for three years; and
(3)	Seats 7, 8, and 9 shall be appointed initially for three years, and thereafter for three years.
(c)	Powers and Duties of the Authority.  In addition to any other powers and duties of the Authority otherwise conferred by law, the Authority may contract with any person, firm, corporation, or agency to assist it in the promotion of travel and tourism and to carry out the purposes identified in Section 1(e) of this act.
On or before April 1 of each year after the levy of the tax authorized in this act, the Authority shall prepare an annual budget based upon anticipated revenues and shall submit the budget to the Cabarrus County Manager for processing and approval through the regular budget procedure of the County.  The Authority shall make quarterly reports to the board detailing its revenues, expenditures, and activities.  The County may audit the Authority's financial records upon reasonable notice to the Authority.  At the end of each fiscal year, any funds of the Authority not expended, obligated, or reserved, as approved by the board, shall be remitted to Cabarrus County for its use.
Sec. 3.  Effective Date.  This act is effective upon ratification.