A BILL TO BE ENTITLED
AN ACT to authorize Burke county to levy an additional three percent occupancy tax and to make other administrative changes.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 422 of the 1989 Session Laws, as amended by Chapter 143 of the 1995 Session Laws, reads as rewritten:
"Section 1.  Occupancy tax. – (a) Authorization and Scope. – The Burke 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 Occupancy Tax. – In addition to the tax authorized by subsection (a) of this section, the Burke 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 this act. Burke County may not levy a tax under this subsection unless it also levies a tax under subsection (a) of this section.
	
(c)	Administration. – A tax levied under this act must be levied, administered, collected, and repealed  as provided in G.S. 153A‑155.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 act.
(c1)	Definitions. – The following definitions apply in this act:
(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.
	
(e)	Distribution and Use of Tax Revenue. – Burke County must, on a quarterly basis, remit the net proceeds of the occupancy tax levied under this act to the Burke County Tourism Development Authority. The Authority must use the proceeds as follows:
(1)	First three percent (3%). – At least two‑thirds must be used to promote travel and tourism in Burke County, and the remainder must be used for tourism‑related expenditures in Burke County.
(2)	Remainder. – The Authority must segregate the remaining net proceeds into three separate accounts as set out in this subdivision. The Authority must use at least two‑thirds of the funds in each account to promote travel and tourism in each of the named areas and must use the remainder for tourism‑related expenditures in each of the named areas. The amounts and accounts are as follows:
a.	Forty‑five percent (45%) must be remitted to the Morganton Account.
b.	Thirty percent (30%) must be remitted to the Burke County Account.
c.	Twenty‑five percent (25%) must be remitted to the Valdese Account.
		
"Sec. 1.1.  Burke County Tourism Development Authority. – (a)  Appointment and Membership. – When the Burke County Board of Commissioners adopts a resolution levying a room occupancy tax under this act, it must also adopt a resolution creating a county Tourism Development Authority that is a public authority under the Local Government Budget and Fiscal Control Act.  The resolution must 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 who are affiliated with businesses that collect the tax in the county, and at least three‑fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the county.  Of the total membership, at least one member must represent the Town of Morganton, and at least one member must represent the Town of Valdese.  The board of commissioners must designate one member of the Authority as chair and must determine the compensation, if any, to be paid to members of the Authority.
The Authority meets at the call of the chair and must adopt rules of procedure to govern its meetings. The Finance Officer for Burke County is the ex officio finance officer of the Authority.
(b)	Duties. – The Authority must expend the net proceeds of the tax remitted to it under this act for the purposes provided in this act. The Authority must promote travel, tourism, and conventions, sponsor tourism‑related events and activities, and finance tourism‑related capital projects in the county and in the named towns in this act.
(c)	Reports. – The Authority must report quarterly and at the close of the fiscal year to the Burke 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.  G.S. 153A‑155(g) reads as rewritten:
"(g)	This section applies only to Alleghany, Anson, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret, Chowan, Clay, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Franklin, Granville, Halifax, Madison, Martin, Montgomery, Nash, New Hanover, New Hanover County District U, Pasquotank, Pender, Person, Randolph, Richmond, Rockingham, Rowan, Scotland, Stanly, Transylvania, Tyrrell, Vance, and Washington Counties, to Watauga County District U, and to the Township of Averasboro in Harnett County."
SECTION 3.  This act is effective when it becomes law.  The Burke County Board of Commissioners has 30 days from the date the act becomes effective to ensure that the membership of the Authority is in compliance with this act.