A BILL TO BE ENTITLED
AN ACT authorizing the townS of ahoskie and Elkin to levy room occupancy and tourism development taxes, creating a taxing district in ocracoke township for the purposes of authorizing the levy of a room occupancy and tourism development tax, amending the room occupancy and tourism development taxes for the counties of chowan and martin, and reenacting the occupancy tax amendments in carteret county.
The General Assembly of North Carolina enacts:
part i.  town of ahoskie occupancy tax.
SECTION 1.1.  Occupancy Tax. – (a)  Authorization and Scope. – The Ahoskie Town Council may levy a room occupancy tax of up to 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 town 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 when furnished in furtherance of their nonprofit purpose.
SECTION 1.1.(b)  Administration. – A tax levied under this Part shall be levied, administered, collected, and repealed as provided in G.S. 160A‑215.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.
SECTION 1.1.(c)  Distribution and Use of Tax Revenue. – The Town of Ahoskie shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Town of Ahoskie 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 the town and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this Part:
(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 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 judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 1.2.  Town of Ahoskie Tourism Development Authority. – (a)  Appointment and Membership. – When the Ahoskie Town Council adopts a resolution levying a room occupancy tax under this act, it shall also 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 resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority.  At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the town, and at least one‑half of the members must be individuals currently active in the promotion of travel and tourism in the town.  The 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 the Town of Ahoskie shall be the ex officio finance officer of the Authority.
SECTION 1.2.(b)  Duties. – The Authority shall expend the net proceeds of the tax levied under this Part for the purposes provided in this Part.  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.
SECTION 1.2.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Ahoskie Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.

part Ii.  elkin occupancy tax.
SECTION 2.1.  Occupancy Tax. – (a)  Authorization and Scope. – The Elkin Town Council may levy a room occupancy tax of up to six percent (6%) 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 town 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 when furnished in furtherance of their nonprofit purpose.
SECTION 2.1.(b)  Administration. – A tax levied under this Part 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.
SECTION 2.1.(c)  Distribution and Use of Tax Revenue. – The Town of Elkin shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Elkin 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 Elkin and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this Part:
(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 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 judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 2.2.  Elkin Tourism Development Authority. – (a)  Appointment and Membership. – When the Elkin Town Council adopts a resolution levying a room occupancy tax under this act, it shall also 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 resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority.  At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the town, and at least one‑half of the members must be individuals currently active in the promotion of travel and tourism in the town.  The 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 Elkin shall be the ex officio finance officer of the Authority.
SECTION 2.2.(b)  Duties. – The Authority shall expend the net proceeds of the tax levied under this Part for the purposes provided in this Part.  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.
SECTION 2.2.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Elkin Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.

part iii.  ocracoke occupancy tax.
SECTION 3.1.  Occupancy Tax. – The Ocracoke Township Taxing District is created.  It is coterminous with Ocracoke Township in Hyde County.  The Ocracoke Township Taxing District is a body politic and corporate and has the power to carry out the provisions of this Part.  The Hyde County Board of Commissioners shall serve ex officio as the governing body of the district, and the officers of the county shall serve as the officers of the governing body of the district.  A simple majority of the governing body constitutes a quorum, and approval by a majority of those present is sufficient to determine any matter before the governing body, if a quorum is present.
SECTION 3.2.(a)  Authorization and Scope. – The governing body of Ocracoke Township Taxing District may levy a room occupancy tax of up to two percent (2%) 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 district 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 or room occupancy tax.  This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations.
SECTION 3.2.(b)  Administration. – A tax levied under this Part shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155, as if it were a county.  The penalties provided in G.S. 153A‑155 apply to a tax levied under this act.
SECTION 3.2.(c)  Distribution and Use of Tax Revenue. – Ocracoke Township Taxing District shall, on a quarterly basis, distribute the net proceeds of the occupancy tax to the Ocracoke Township Tourism Development Authority created pursuant to Section 3.3 of this act.  The Authority shall use at least two‑thirds of the proceeds distributed to it to promote travel and tourism in the district and shall use the remainder for tourism‑related expenditures in the district.  In accordance with the North Carolina Constitution and the United States Constitution, the tax proceeds may be used only for the direct benefit of Ocracoke Township.  None of the proceeds may be used to promote travel or tourism in areas within Hyde County that are outside of the district or for tourism‑related expenditures in the county that are outside of the district.
The following definitions apply in this Part:
(1)	Net proceeds. – Gross proceeds less the cost to the district 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 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 judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a district or to attract tourists or business travelers to the district. The term includes tourism‑related capital expenditures.
SECTION 3.3.(a)  Ocracoke Township Tourism Development Authority. – Appointment and Membership. – The Board of Commissioners of Hyde County shall adopt a resolution creating the Ocracoke Township Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act.  The Tourism Development Authority shall have five members in addition to the Finance Officer.  The resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority. At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the district, and at least one‑half of the members must be individuals currently active in the promotion of travel and tourism in the district. The Board of Commissioners 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 Hyde County shall be the ex officio finance officer of the Authority.
SECTION 3.3.(b)  Duties. – The Authority shall expend the net proceeds of the tax levied under this Part for the purposes provided in Section 3.2 of this Part.  The Authority shall promote travel and tourism in the district and make tourism‑related expenditures in the district.
SECTION 3.3.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Hyde 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.

part IV.  chowan occupancy tax.
SECTION 4.  S.L. 1989‑174 reads as rewritten:
"Section 1.  Occupancy Tax. –  (a)  Authorization and Scope. –  The Chowan 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 when furnished in furtherance of their nonprofit purpose.
(a1)	Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Chowan County Board of Commissioners may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a) of this section. The levy, collection, administration, and repeal of the tax authorized by this subsection must be in accordance with the provisions of this section. Chowan County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
	
(c)	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 in this section.	
(e)	Distribution and Use of Tax Revenue. – Chowan County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Chowan 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 Chowan County and the remainder for tourism‑related expenditures.
The following definitions apply in this Part:
(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 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 similar promotional activities that attract tourists or business travelers to the area. The term includes administrative expenses incurred in engaging in these activities. 
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the Authority, 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.
		
"Sec. 2.  Tourism Development Authority. – (a) Appointment and Membership. – When the board of commissioners adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a county Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the county and at least one‑half must be individuals currently active in the promotion of travel and tourism in the county. The board of commissioners 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 county shall serve as the fiscal agent of the Authority. The Finance Officer for Chowan 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 Section 1 of this act. The Authority shall promote travel, tourism, and conventions in the county, sponsor tourism‑related events and activities in the county, and finance tourism‑related capital projects in the county.
(c)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the 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. 3. This act is effective upon ratification."

part v. martin occupancy tax.
SECTION 5.  S.L. 1991‑80 reads as rewritten:
"Section 1. Occupancy Tax. – (a)  Authorization and Scope. – The Martin 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 any room, lodging, or similar 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, when furnished in furtherance of their nonprofit purpose, by summer camps, or by businesses that offer to rent no more than five units.
(a1)	Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Martin County Board of Commissioners may levy an additional room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of accommodations taxable under subsection (a) of this section. The levy, collection, administration, and repeal of the tax authorized by this subsection must be in accordance with the provisions of this section. Martin County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
	
(c)	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. – Martin County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Martin County Travel and Tourism Authority.  The Authority shall use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in Martin County and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this Part:
(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 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 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 judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a county or to attract tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
		
"Sec. 2. Martin County Tourism Development Authority. – (a)  Appointment and Membership. –  When the board of commissioners adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the Martin County Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide that the Authority shall be composed of the following 12 members:
(1)	A Martin County Commissioner appointed by the Martin County Board of Commissioners.
(2)	Two owners or operators of restaurants, motels, hotels, or other taxable accommodations in Martin County that have at least five units, nominated by representatives of this industry, both to be appointed by the Martin County Board of Commissioners.
(3)	One member selected by the Martin County Chamber of Commerce to be appointed by the Martin County Board of Commissioners.
(4)	One member appointed by the Martin County Board of Commissioners selected from the Martin County Economic Development Commission.
(5)	Five members, one appointed by each member of the Martin County Board of Commissioners.
(6)	One member appointed by the Martin County Board of Commissioners selected from the Martin County Historical Society.
(7)	One member appointed by the Martin County Board of Commissioners selected from the Robersonville Downtown Merchants Association.
The appointees shall be made from throughout the County by the Martin County Board of Commissioners. At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the county and at least one‑half of the members must be individuals currently active in the promotion of travel and tourism in the county. All members of the Authority shall serve without compensation. Vacancies shall be filled in the same manner as original appointments. Members appointed to fill vacancies shall serve for the remainder of the unexpired term. The Authority shall elect each year from its membership a Chair. No member may serve as Chair more than two one‑year terms in succession. The Authority shall meet at the call of the Chair or of any three members and shall adopt rules of procedure to govern its meetings. The Finance Officer for Martin County shall be the ex officio finance officer of the Authority.
(b)	Terms of office. – Members of the Authority shall serve three‑year terms except that the Martin County Commissioner appointed pursuant to subdivision (a)(1) shall be appointed yearly by the chairman of the board of commissioners and initial appointees shall serve the following terms:
(1)	The Martin County Commissioner appointed pursuant to subdivision (a)(1): one year.
(2)	One representative of the motel and restaurant industry appointed pursuant to subdivision (a)(2): one year.
(3)	One representative of the motel and restaurant industry appointed pursuant to subdivision (a)(2): three years.
(4)	The representative of the Martin County Chamber of Commerce appointed pursuant to subdivision (a)(3): three years.
(5)	The representative of the Martin County Economic Development Commission appointed pursuant to subdivision (a)(4): two years.
(6)	Three members appointed by Martin County Commissioners pursuant to subdivision (a)(5): one year.
(7)	Two representatives appointed by Martin County Commissioners pursuant to subdivision (a)(5): three years.
(8)	The representative of the Martin County Historical Society appointed pursuant to subdivision (a)(6): two years.
(9)	The representative of the Robersonville Downtown Merchants Association appointed pursuant to subdivision (a)(7): three years.
(c)	Limitation on terms. – No member of the Authority shall serve more than two consecutive three‑year terms.
(d)	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. The board of county commissioners may from time to time determine an appropriate percentage not to exceed five percent (5%) of net proceeds that may be expended for administrative services.
(e)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the 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. 3. This act is effective upon ratification."

part vi. uniform provisions.
SECTION 6.1.  G.S. 153A‑155(g) reads as rewritten:
"(g)	This section applies only to Alleghany, Anson, Brunswick, Buncombe, Cabarrus, Camden, Carteret, Chowan, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Granville, Halifax, Madison, Martin, Montgomery, Nash, New Hanover, Pasquotank, Pender, Person, Randolph, Richmond, Rowan, Scotland, Stanly, Transylvania, Tyrrell, Vance, and Washington Counties, to Watauga County District U, and to the Township of Averasboro in Harnett County and the Ocracoke Township Taxing District."
SECTION 6.2.  G.S. 160A‑215(g) reads as rewritten:
"(g)	This section applies only to Beech Mountain District W, to the Cities of Elizabeth City, Gastonia, Goldsboro, Greensboro, High Point, Kings Mountain, Lexington, Lincolnton, Lumberton, Monroe, Mount Airy, Roanoke Rapids, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Blowing Rock, Carolina Beach, Carrboro, Elkin, Franklin, Kure Beach, Jonesville, Mooresville, North Topsail Beach, Selma, Smithfield, St. Pauls, West Jefferson, Wilkesboro, and Wrightsville Beach, and to the municipalities in Avery and Brunswick Counties."

part vIi. carteret occupancy tax.
SECTION 7.  S.L. 2005‑120 is reenacted.

part viiI.	effective dates.
SECTION 8.  This act is effective when it becomes law.  Chowan and Martin counties must ensure that the membership of the Tourism Development Authorities are in compliance with the requirements of this act on or before January 1, 2006.