GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1747

Short Title:  Beech Mtn./Banner Elk Occy Tax Changes.  	(Local)

─────────────────────────────────────── 
Sponsors: Representative Thompson.

─────────────────────────────────────── 
Referred to:  Rules, Calendar, and Operations of the House.

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

May 25, 2000

A BILL TO BE ENTITLED
AN ACT TO CHANGE THE PURPOSES FOR WHICH THE BANNER ELK OCCUPANCY TAX MAY BE USED, TO AUTHORIZE THE TOWN OF BEECH MOUNTAIN TO INCREASE ITS OCCUPANCY TAX, AND TO MAKE CONFORMING CHANGES.
The General Assembly of North Carolina enacts:
Section 1.  Sections 1 through 6 of Chapter 318 of the 1989 Session Laws, as amended by Chapter 428 of the 1993 Session Laws, read as rewritten:
"Section 1.  Occupancy Tax.  The Town Council of Banner Elk may levy a room occupancy and tourism development tax.  
The occupancy and tourism development tax that may be levied under this act shall be three percent (3%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation in the Town of Banner Elk 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.  The tax shall not apply to any room, lodging, or accommodation supplied to the same person for a period of 90 continuous days or more or to sleeping rooms or lodging furnished by charitable, educational, or religious institutions or by nonprofit organizations.
Sec. 2.  Administration of Tax.  (a) A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215.  The penalties provided in G.S. 160A-215 apply to a tax levied under this section. 
	(c)	All persons, firms, corporations, and associations who rent either their own dwelling or dwellings or rooms for other persons are required to submit to the town a list of all rented properties.  This list shall include the owner's name and current address and the location of the rental property.  The list shall be submitted semi-annually on or before November 30 and May 30.  Failure to file this listing shall subject the person, firm, corporation, or association to a civil penalty of fifty dollars ($50.00).
Sec. 3.  Collection of Tax.  (a)	
(b)	Collection of the tax shall be the responsibility of the Banner Elk Tax Administrator.  In his or her discretion, the tax administrator may proceed against an operator whose occupancy tax is delinquent employing all remedies for collection of tax as set out in G.S. 105-367, 105-368, 105-374, and 105-375.  In employing the remedies under those statutes, the tax levied under this act shall be treated as a property tax on personal property.  The Tax Administrator may audit occupancy tax reports as he or she deems necessary utilizing information available to him or her in property tax matters.
Sec. 5.  Disposition of Taxes Collected.  The town council shall use at least one-third of the room occupancy tax proceeds to promote travel and tourism and shall use the remainder of the proceeds only for tourism-related expenditures.  The term ‘promote travel and tourism' means to advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in or sponsor similar promotional activities that attract tourists or business travelers to the area; the term includes administrative expenses incurred in engaging in the listed activities.  The term ‘tourism-related expenditures' means expenditures that are designed to increase the use of lodging facilities, recreational facilities, and business establishments in the town or to attract tourists or business travelers to the town, and expenditures incurred by the town in collecting the tax.  The term includes expenditures to construct, maintain, operate, or market a convention or meeting facility, a visitors' center, a coliseum, sidewalks, or public parking areas, and other expenditures that, in the judgment of the town council, will facilitate and support tourism.
The town may retain its costs of collecting the tax, not to exceed seven percent (7%) of the amount collected.
."
Section 2.  Sections 1 through 6 of Chapter 376 of the 1987 Session Laws read as rewritten:
"Section 1.  Occupancy Tax.  The Town Council of Beech Mountain may levy a room occupancy and tourism development tax.  
The occupancy and tourism development tax that may be levied under this act shall be three percent (3%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation in the Town of Beech Mountain 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 local sales tax.  The tax shall not apply to any room, lodging, or accommodations supplied to the same person for a period of 90 continuous days or more.  The tax shall also not apply to sleeping rooms or lodgings furnished by charitable, educational, or religious institutions or non-profit organizations.
Sec. 1.1. Authorization of Additional Tax.  In addition to the tax authorized by subsection (a) of this section, the Town Council of Beech Mountain may levy an additional room occupancy tax of up to one percent (1%) of the gross receipts derived from the rental of accommodations taxable under Section 1 of this act.   The levy, collection, administration, and repeal of the tax authorized by this section shall be in accordance with the provisions of this act.  The Town of Beech Mountain may not levy a tax under this section unless it also levies the tax authorized under Section 1 of this act.
Sec. 2.  Administration of Tax.  (a)	A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215.  The penalties provided in G.S. 160A-215 apply to a tax levied under this section. 
	(c)	All persons, firms, corporations, and associations who rent either their own dwelling or dwellings or rooms for other persons are required to submit to the Town a list of all rental properties.  This list shall include the owner's name, current address, and location of rental property.  The list shall be submitted semi-annually on or before November 30 and May 30.  Failure to file said listing shall subject the person, firm, corporation or association to a civil penalty.
Sec. 3.  Collection of Tax.  (a)	
	Collection of the tax shall be the responsibility of the Beech Mountain Tax Administrator.  In his/her discretion, the Tax Administrator may proceed against an operator whose occupancy tax is delinquent, employing all remedies for collection of tax as set out in G.S. 105-367, 105-368, 105-374, and 105-375.  The Tax Administrator may audit occupancy tax reports as he/she deems necessary, utilizing information available to him/her in property tax matters.
Sec. 5.  Disposition of Taxes Collected.  The Town of Beech Mountain shall retain from the gross proceeds of the tax collected an amount sufficient to pay its direct costs for administrative and collection expenses.  "Net proceeds”shall mean gross proceeds less the direct costs for administrative and collection expenses not to exceed three percent (3%) of the amount collected.  The net proceeds shall be distributed to the Town Council.  The Town Council may expend the net proceeds of the tax levied in Section 1 of this act only to further the development of travel, tourism, conventions, and convention facilities in the Town.  The Town Council may expend the net proceeds of the tax levied in Section 1.1 of this act only for capital outlay for recreation facilities.
.”
Section 3.  G.S. 160A-215 reads as rewritten:
"§ 160A-215.  Uniform provisions for room occupancy taxes.
(a)	Scope. – This section applies only to municipalities the General Assembly has authorized to levy room occupancy taxes.  For the purpose of this section, the term "city”means a municipality.
(b)	Levy. – A room occupancy tax may be levied only by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto.  A room occupancy tax 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.
(c)	Collection. – Every operator of a business subject to a room occupancy tax shall, on and after the effective date of the levy of the tax, collect the tax.  The 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 taxing city.  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 taxing city shall design, print, and furnish to all appropriate businesses and persons in the city the necessary forms for filing returns and instructions to ensure the full collection of the tax.  An operator of a business who collects a room occupancy tax may deduct from the amount remitted to the taxing city a discount equal to the discount the State allows the operator for State sales and use tax.
(d)	Administration. – The taxing city shall administer a room occupancy tax it levies.  A room occupancy tax is due and payable to the city finance officer in monthly installments on or before the fifteenth 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 fifteenth day of each month, prepare and render a return on a form prescribed by the taxing city.  The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied.  A room occupancy tax return filed with the city finance officer is not a public record and may not be disclosed except in accordance with G.S. 153A-148.1 or G.S. 160A-208.1.
(e)	Penalties. – A person, firm, corporation, or association who fails or refuses to file a room occupancy tax return or pay a room occupancy tax as required by law 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 governing board of the taxing city 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.
(f)	Repeal or Reduction. – A room occupancy tax levied by a city may be repealed or reduced by a resolution adopted by the governing body of the city.  Repeal or reduction of a room occupancy tax 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 resolution was adopted.  Repeal or reduction of a room occupancy tax does not affect a liability for a tax that was attached before the effective date of the repeal or reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal or reduction.
(g)	This section applies only to the Cities of Goldsboro, Greensboro, Lumberton, Mount Airy, Shelby, and Statesville, to the Towns of Banner Elk, Beech Mountain, Mooresville, and St. Pauls, and to the municipalities in Brunswick County."
Section 4.  Section 1 of this act becomes effective on the first day of the first month after it becomes law and applies to taxes collected on or after that date.  The remainder of this act is effective when it becomes law.