GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	4 

HOUSE BILL 1748
Committee Substitute Favorable 6/22/00
Senate Finance Committee Substitute Adopted 6/30/00
Fourth Edition Engrossed 7/5/00

Short Title:  Granville/Banner Elk Tax Use.	(Local)

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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, TO MAKE TECHNICAL CHANGES, TO CHANGE THE PURPOSES FOR WHICH THE BANNER ELK OCCUPANCY TAX MAY BE USED, AND TO MAKE CONFORMING CHANGES.
The General Assembly of North Carolina enacts:
PART I.  GRANVILLE COUNTY OCCUPANCY TAX REVISIONS
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A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A-155.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."
PART II.  BANNER ELK OCCUPANCY TAX REVISIONS
Section 6.  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. 5.  Distribution and Use of Tax Revenue.  The Town Council shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Banner Elk Tourism Development Authority.  The Authority shall use at least one-third of the funds remitted to it under this section to promote travel and tourism in Banner Elk and shall use the remainder for tourism-related expenditures.
The following definitions apply in this section:
(1)	Net proceeds. – Gross proceeds less the cost to the town of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.
(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 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.  
(3)	Tourism-related expenditures. – Expenditures that, in the judgement of the Authority, 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.  The term includes tourism-related capital expenditures and expenditures required to make the downtown tourist area and nearby green areas more accessible, attractive, and usable to pedestrian tourists, in accordance with the master plan approved by the Town Council.
"Sec. 7. Tourism Development Authority.  (a)	Appointment and membership.  The Town of Banner Elk shall adopt a resolution creating a town 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 by the mayor and approved by the Town Council.  Two of the members must be an owner or manager of a Banner Elk hotel or motel and one of the other members must be a representative for Lees-McRae College. The remaining two members must be individuals who are currently active in the promotion of travel and tourism in the town.  Vacancies shall be filled in the same manner as the original appointments, and members appointed to fill vacancies shall serve for the remainder of the unexpired term.  The Banner Elk Town Council shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority.
The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings.  The Finance Officer for Banner Elk shall be the ex officio, nonvoting 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 Section 5 of this act.  The Authority shall promote travel, tourism, and conventions in the town, sponsor tourist-related events and activities in the town, and finance tourist-related capital projects in the town.
(c)	Reports.  The Authority shall report quarterly and at the close of the fiscal year to the Banner Elk Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require."
Section 7.   To achieve the staggered terms required on the Banner Elk Tourism Development Authority, as provided in Section 6 of this act, the initial terms of the members of the Authority shall be as follows:  The initial term of one of the two at-large members shall be one year and the initial term of one of the two members that is an owner or manager of a Banner Elk hotel or motel shall be two years.  The remaining initial members shall serve terms of three years each.  Thereafter, all terms shall be three years.
Section 8.  Effective October 1, 2010, Section 5 of Chapter 318 of the 1989 Session Laws, as amended by Chapter 428 of the 1993 Session Laws and Section 6 of this act, reads as rewritten:
"Sec. 5.  Distribution and use of tax revenue.  The town council shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Banner Elk Tourism Development Authority.  The Authority shall use at least two-thirds of the funds remitted to it under this section to promote travel and tourism in Banner Elk 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 town of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.
(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 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.  
(3)	Tourism-related expenditures. – Expenditures that, in the judgement of the Authority, 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.  The term includes tourism-related capital expenditures."
Section 9.  G.S. 160A-215(g) reads as rewritten:
"(g)	This section applies only to the Cities of Goldsboro, Greensboro, Lumberton, Mount Airy, Shelby, and Statesville, to the Towns of Banner Elk, Mooresville, and St. Pauls, and to the municipalities in Brunswick County."
PART III.  EFFECTIVE DATES
Section 10.(a)	Part I:  Granville Occupancy Tax Revisions.  Sections 1 through 5 of this act apply only to Granville County.  Sections 1, 2, and 5 of this act become effective October 1, 2000, and apply to taxes collected on or after that date.  Sections 3 and 4 of this act become effective October 1, 2007, and apply to taxes paid on or after that date.  
Section 10.(b)	Part II:  Banner Elk Occupancy Tax Revisions.  Sections 6 through 9 of this act apply only to the Town of Banner Elk.  Sections 6, 7, and 9 of this act become effective October 1, 2000, and apply to taxes collected on or after that date.  Section 8 of this act becomes effective October 1, 2010, and applies to taxes collected on or after that date.  
Section 10.(c)	The remainder of this act is effective when it becomes law.