GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 706

Short Title:  Craven Additional Occupancy Tax.	(Local)

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Sponsors: Representative Nichols.

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Referred to:  Finance.

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March 30, 1995

A BILL TO BE ENTITLED
AN ACT AUTHORIZING CRAVEN COUNTY TO INCREASE ITS ROOM OCCUPANCY TAX FROM THREE PERCENT TO NO MORE THAN SIX PERCENT, TO PROVIDE FOR THE USE OF THE PROCEEDS OF THE ADDITIONAL TAX, AND TO MODIFY THE EXISTING CRAVEN COUNTY ROOM OCCUPANCY TAX.
The General Assembly of North Carolina enacts:
PART I.
AUTHORIZATION FOR ADDITIONAL CRAVEN COUNTY
ROOM OCCUPANCY TAX
Section 1.  Levy of Additional Occupancy Tax.  (a)	Authorization.  In addition to the tax authorized by Chapter 980 of the 1983 Session Laws, the Craven County Board of Commissioners may by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto, levy an additional room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of accommodations taxable under that Chapter.  The levy, collection, administration, and repeal of the tax authorized by this act shall be in accordance with the provisions of Sections 1 through 5 of Chapter 980 of the 1983 Session Laws.  Craven County may not levy a tax under this act unless it also levies the tax authorized under Chapter 980 of the 1983 Session Laws.
(b)	Use of Proceeds of Additional Tax.  Craven County shall, on a monthly basis, remit to the Craven County Tourism Development Authority the net proceeds, as defined in Section 6 of Chapter 980 of the 1983 Session Laws, of the tax levied under this act.
The Authority shall use the proceeds to pay the construction, debt service, and operations of a convention center.  The Authority shall distribute any proceeds not needed for these purposes as follows:
(1)	Proceeds collected from a business located in a municipality shall be distributed to that municipality.
(2)	Proceeds collected from a business not located in a municipality shall be distributed to Craven County.
Craven County and the municipalities in Craven County shall use the proceeds distributed to them under this section only to promote tourism and for tourism-related expenditures as defined in Section 6 of Chapter 980 of the 1983 Session Laws.
Sec. 2.  Reduction of Tax.  The Craven County Board of Commissioners may adopt a resolution to reduce the tax levied pursuant to Section 1 of this act.  Reduction of the tax shall be subject to the provisions governing repeal of the tax in Section 8 of Chapter 980 of the 1983 Session Laws.
PART II.
MODIFICATIONS TO EXISTING CRAVEN COUNTY
ROOM OCCUPANCY TAX
Sec. 3.  Section 4 of Chapter 980 of the 1983 Session Laws reads as rewritten:
"Sec. 4.  Administration of Tax.  (a)	Any tax levied under this act is due and payable to the county 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 Craven County.  The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied.
	(b)	Any person, firm, corporation, or association 
		who fails or refuses to file the return required by this act 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 board of commissioners 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."
Sec. 4.  Section 6 of Chapter 980 of the 1983 Session Laws reads as rewritten:
"Sec. 6.  Disposition of Taxes Collected.  (a)	Craven County shall remit the net proceeds of the occupancy tax to the Craven County Tourism Development Authority.  The Authority shall use the net proceeds only to promote travel and tourism in Craven County and 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, not to exceed three percent (3%) of the gross proceeds of the tax.  
(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 are designed to increase the use of lodging facilities in a county or to attract tourists or business travelers to the county.  The term includes expenditures to construct, maintain, operate, or market a convention center and any of the following expenditures:
	a.	Marketing and promotions expenses, including test market programs, consultant fees, entertainment, housing expenses, travel expenses, and registration fees;
b.	Operating expenses for the Visitor Information Center, including postage, telephone, supplies, dues, subscriptions, equipment, rent, and overhead allocation;
c.	Salaries, benefits, and expenses for Visitor Information Center personnel; and
d.	Other expenses that aid and encourage visitor promotions, conventions, or tourism.
	(b)	The County Tourism Development Authority may contract with appropriate organizations or agencies to assist it in carrying out the above purposes."
PART III.
EFFECTIVE DATE
Sec. 5.  This act is effective upon ratification.