GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 1102*

Short Title:  Modify Davie Room Tax Use.	(Local)

─────────────────────────────────────── 
Sponsors: Senator Cochrane.

─────────────────────────────────────── 
Referred to:  Finance.

─────────────────────────────────────── 

May 13, 1998

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE PURPOSES FOR WHICH DAVIE OCCUPANCY TAX PROCEEDS MAY BE USED AND TO MAKE TECHNICAL AND CONFORMING CHANGES TO THE LAW.
The General Assembly of North Carolina enacts:
Section 1.  Section 1 of Chapter 928 of the 1989 Session Laws reads as rewritten:
"Section 1.  Davie County occupancy tax.
(a)	Authorization and Scope. – The Davie 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.
(b)	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 – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A-155.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.
 		(e)	Distribution and use of tax revenue. – Davie County shall, on a monthly basis, deposit in a special account at least fifty percent (50%) of the net proceeds of the occupancy tax.  Funds in the special account may be used only to promote travel and tourism in Davie County and to finance tourism related capital projects in the county.  However, any tax proceeds in the special account that have not been appropriated after three years following the date they were deposited in the account shall be remitted to the general fund of Davie County and may be used for any lawful purpose.
Davie County shall, on a monthly basis, remit the remaining net proceeds of the tax to its general funds and may use these funds for any lawful purpose.  " The following definitions apply in 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 seven percent (7%) of the amount collected.
(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.
		."
Section 2.  County Administrative Provisions.  Section 3(b) of S.L. 1997-102, as amended by Section 2 of S.L. 1997-255, Section 2 of S.L. 1997-342, Section 3 of S.L. 1997-364, and Section 6 of S.L. 1997-410, reads as rewritten:
"(b)	This section applies only to Avery, Brunswick, Davie, Madison, Nash, Person, Randolph, and Scotland Counties."
Section 3.  This act becomes effective July 1, 1998.