GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	2 

HOUSE BILL 1748
Committee Substitute Favorable 6/22/00

Short Title:  Change Granville Room Tax Use.	(Local)

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Sponsors:

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Referred to: 

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May 25, 2000

A BILL TO BE ENTITLED
AN ACT TO CHANGE THE PURPOSES FOR WHICH THE GRANVILLE COUNTY OCCUPANCY TAX CAN BE USED FOR A LIMITED PERIOD OF TIME, TO ESTABLISH A TOURISM DEVELOPMENT AUTHORITY, AND TO MAKE TECHNICAL CHANGES.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 454 of the 1993 Session Laws reads as rewritten:
"Section 1.  Occupancy tax.
(a)	Authorization and Scope.
The Granville 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 accommodation furnished by a hotel, motel, inn, tourist camp, 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.  The combined occupancy tax rates for Granville County and any city or town that is located in Granville County and is authorized to levy a room occupancy tax may not exceed six percent (6%).
(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A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A-155.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.
”The county shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Granville County Tourism Development Authority.  The Authority may use up to two-thirds of the funds remitted to it under this subsection for the following tourism-related expenditures designed to attract tourists and business travelers from outside the county into the county:  (i)	developing facilities for fishing tournaments, skiing tournaments, and boating events; (ii) constructing facilities for festivals; (iii) constructing tournament grade multipurpose athletic facilities; and (iv) financing other similar capital expenditures.  The Authority shall use the remaining net proceeds to promote travel and tourism in Granville County.
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 three percent (3%) of the gross proceeds.
(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 county.  The term includes administrative expenses incurred in engaging in the listed activities. ”
(3)	Tourism-related expenditures. – Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities in the county or to attract tourists or business travelers to the county.  The term includes tourism-related capital expenditures.  
		Sec. 1.1.  Granville Tourism Development Authority.
(a)	Appointment and Membership.
The Board of County Commissioners shall adopt a resolution creating a county Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act.  The Authority shall be composed of five members who shall serve for staggered three-year terms.  The members shall be appointed as follows: three appointed by the Granville County Board of Commissioners, one appointed by the Oxford City Council, and one appointed by the Creedmoor City Council.  One of the three members appointed by the Granville County Board of Commissioners must be an owner or manager of a Granville County hotel or motel.  The remaining members must be individuals who are currently active in the promotion of travel and tourism in the county.  Vacancies shall be filled in the same manner as original appointments, and members appointed to fill vacancies shall serve for the remainder of the unexpired term.  The resolution shall determine the compensation, if any, to be paid to the members of the Authority.
At the first meeting of each calendar year, the membership of the Authority shall elect one member to serve as chair until the first meeting of the following year.  The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings.  The Finance Officer for Granville County shall be the ex officio finance officer of the Authority.
(b)	Duties.
The Authority shall expend the net proceeds of the tax levied under this act for the purposes provided in this act.  The Authority shall promote travel, tourism, and conventions in the county, sponsor tourist-related events and activities in the county, and finance tourist-related capital projects in the county.
(c)	Reports.
The Authority shall report quarterly and at the close of the fiscal year to the Granville County Board of Commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
Sec. 2.  This act is effective upon ratification."
Section 2.  To achieve the staggered terms required on the Granville County Tourism Development Authority, as provided in Section 1 of this act, the initial terms of the members of the Authority shall be as follows:  The initial term of the member who is an owner or manager of a hotel or motel shall be three years.  The Granville County Board of Commissioners must designate one of its remaining appointees to serve an initial term of two years and the other to serve an initial term of one year.  The remaining initial members shall serve terms of three years each.  Thereafter, all terms shall be three years.
Section 3.  Section 1(a) of Chapter 454 of the 1993 Session Laws, as amended by Section 1 of this act, reads as rewritten:
"(a)	Authorization and Scope.
The Granville County Board of Commissioners may levy a room occupancy tax of five percent (5%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, 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.  The combined occupancy tax rates for Granville County and any city or town that is located in Granville County and is authorized to levy a room occupancy tax may not exceed six percent (6%)."
Section 4.  Section 1(e) of Chapter 454 of the 1993 Session Laws, as amended by Section 1 of this act, reads as rewritten:
"(e)	Distribution and Use of Tax Revenue.
The county shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Granville County Tourism Development Authority.  The Authority shall use at least two-thirds of the funds remitted to it under this subsection 	to promote travel and tourism in Granville County and shall use the remainder 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, as determined by the finance officer, not to exceed three percent (3%) of the gross proceeds.
(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 county.  The term includes administrative expenses incurred in engaging in the listed activities. 
(3)	Tourism-related expenditures. – Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities in the county or to attract tourists or business travelers to the county.  The term includes tourism-related capital expenditures."
Section 5.  G.S. 153A-155(g) reads as rewritten:
"(g)	This section applies only to Avery, Brunswick, Craven, Currituck, Davie, Granville, Madison, Nash, Person, Randolph, Scotland, and Transylvania Counties."
Section 6.  Sections 3 and 4 of this act become effective October 1, 2007, and apply to taxes collected on or after that date.  The remainder of this act becomes effective October 1, 2000, and applies to taxes collected on or after that date.