A BILL TO BE ENTITLED
AN ACT to allow an increase in the Currituck County Occupancy Tax and to change the purposes for which the Tax may be used.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 1(a1) of Chapter 209 of the 1987 Session Laws, as amended by Chapter 155 of the 1991 Session Laws, reads as rewritten:
"(a1)	Additional occupancy tax. In addition to the tax authorized by subsection (a) of this section, the Currituck County Board of Commissioners may levy a room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this act. Currituck County may not levy a tax under this subsection unless it also levies the tax under subsection (a)."
SECTION 2.  Section 1(e) of Chapter 209 of the 1987 Session Laws, as amended by Chapter 155 of the 1991 Session Laws, reads as rewritten:
"(e)	Use of tax revenue. Currituck County shall use the net proceeds of the tax levied under subsection (a) of this section only for tourism‑related expenditures. Currituck County shall use at least two‑thirds of the net proceeds of the tax levied under subsection (a1) of this  section to promote travel and tourism and shall use the remainder of those funds for tourism‑related expenditures. 
The following definitions apply in this subsection:
(1)	Beach nourishment. – The placement of sand, from other sand sources, on a beach or dune by mechanical means and other associated activities that are in conformity with the North Carolina Coastal Management Program along the shorelines of the Atlantic Ocean of North Carolina and connecting inlets for the purpose of widening the beach to benefit public recreational use and mitigating damage and erosion from storms to inland property. The term includes expenditures for any of the following:
a.	Costs directly associated with qualifying for projects either contracted through the U.S. Army Corps of Engineers or otherwise permitted by all appropriate federal and State agencies.
b.	The nonfederal share of the cost required to construct these projects.
c.	The costs associated with providing enhanced public beach access.
d.	The costs of associated nonhardening activities such as the planting of vegetation, the building of dunes, and the placement of sand fences. 
(2)	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 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.
(3)	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 these activities.
(4)	Tourism‑related expenditures. – Expenditures that, in the judgment of the Currituck County Board of Commissioners, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in a county by attracting tourists or business travelers to the county. The term includes tourism‑related capital expenditures and beach nourishment."
SECTION 3.  This act is effective when it becomes law.