A BILL TO BE ENTITLED
AN ACT to modify the occupancy tax of the city of lumberton.
The General Assembly of North Carolina enacts:
SECTION 1.  Part IX of Chapter 908 of the 1983 Session Laws, as amended by Chapter 1028 of the 1983 Session laws and Chapter 935 of the 1987 Session Laws, as it relates to the City of Lumberton only, and Section 2 of Chapter 361 of the 1997 Session Laws, as it relates to the City of Lumberton only, reads as rewritten:
"Section 2.  Lumberton Occupancy Tax.  (a) Authorization and scope.  The Lumberton City 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 city 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.
(b)	[Repealed August 1, 2000.]
(c)	Administration. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A‑215.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.
(d)	Distribution and use of tax revenue. The City of Lumberton shall, on a quarterly basis, remit sixty percent (60%) of the net proceeds of the occupancy tax to the Lumberton Tourism Development Authority and forty percent (40%) of the net proceeds to the Carolina Civic Center Foundation, Inc. The Authority shall use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in Lumberton and shall use the remainder for tourism‑related expenditures. Of the forty percent (40%) remitted to it under this subsection, the Foundation shall use eighty‑three percent (83%) for the general operations of the Carolina Civic Center and shall place the remaining funds into a capital reserve for the maintenance, repair, and capital needs of the Carolina Civic Center property and equipment.
(e)	[Repealed August 1, 2000.]
(f)	The following definitions apply in this section:
(1)	Net proceeds. – Gross proceeds less the cost to the city 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 the gross proceeds collected each year and one percent (1%) of the remaining gross proceeds 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 Authority, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in the city or to attract tourists or business travelers to the city. The term includes tourism‑related capital expenditures."
SECTION 2.  Part IX of Chapter 908 of the 1983 Session Laws, as amended by Chapter 1028 of the 1983 Session laws and Chapter 935 of the 1987 Session Laws, as it relates to the City of Lumberton only, and Section 3 of Chapter 361 of the 1997 Session Laws, as it relates to the City of Lumberton only, and Section 1 of this act, reads as rewritten:
"Section 2.  Lumberton Occupancy Tax.  (a) Authorization and scope.  The Lumberton City 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 city 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.
(b)	[Repealed August 1, 2000.]
(c)	Administration. 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.
(d)	Distribution and use of tax revenue. The City of Lumberton shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Lumberton 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 Lumberton and shall use the remainder for tourism‑related expenditures. 
(e)	[Repealed August 1, 2000.]
(f)	The following definitions apply in this section:
(1)	Net proceeds. – Gross proceeds less the cost to the city 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 the gross proceeds collected each year and one percent (1%) of the remaining gross proceeds 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 Authority, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in the city or to attract tourists or business travelers to the city. The term includes tourism‑related capital expenditures."
SECTION 3.  Part IX of Chapter 908 of the 1983 Session Laws, as amended by Chapter 1028 of the 1983 Session laws and Chapter 935 of the 1987 Session Laws, as it relates to the City of Lumberton only, and Section 3 of Chapter 361 of the 1997 Session Laws, as it relates to the City of Lumberton only, reads as rewritten:
"Section 3.  Lumberton Tourism Development Authority.  (a) Appointment and membership.  When the Lumberton City Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a city 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 shall be individuals who are affiliated with businesses that collect the tax in the city, and at least one‑half of the members shall be individuals who are currently active in the promotion of travel and tourism in the city. 
The Lumberton City 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 City of Lumberton shall be the ex officio finance officer of the Authority.
(b)	Duties. The Authority shall expend the net proceeds of the tax levied under Section 2 of this act for the purposes provided in Section 2 of this act. The Authority shall promote travel, tourism, and conventions in the city, sponsor tourist‑related events and activities in the city, and finance tourist‑related capital projects in the city.
(c)	Reports. The Authority shall report quarterly and at the close of the fiscal year to the Lumberton City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the Lumberton City Council may require."
SECTION 4.  Section 1 of this act is effective the first day of the first month following enactment of this act.  Section 2 of this act becomes effective October 1, 2014.  The remainder of this act is effective when it becomes law.  The 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.