AN ACT to modify the forsyth county room occupancy and tourism development tax.

The General Assembly of North Carolina enacts:

SECTION 1.  Part VII of Chapter 908 of the 1983 Session Laws, as amended by Chapters 33 and 924 of the 1985 Session Laws, Chapter 870 of the 1989 Session Laws, and S.L. 1997‑408, reads as rewritten:
"Part VII. Forsyth Occupancy Tax. 

"Sec. 25. Occupancy Tax. – Authorization and Scope. – The Board of Commissioners of Forsyth County may levy a room occupancy and tourism development tax of two percent (2%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation furnished by any hotel, motel, inn, tourist camp, or other similar place within the countythat 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 any of the following:
(1)	Religious organizations.
(2)	Educational organizations. 
(3)	Any business that offers to rent fewer than five units.
(4)	Summer camps. 
"Sec. 26. Administration of Tax.  – A tax levied under this Part shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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.			 
"Sec. 28. Distribution of Two Percent (2%) and One Percent (1%) Taxes. (a) Forsyth County shall, on a quarterly basis, remit the net proceeds of the occupancy taxes levied under Sections 25 and 30.1 of this Part as follows: 
(1)	Five percent (5%) of the net proceeds shall be divided among the municipalities in Forsyth County, other than Winston‑Salem, on a pro rata basis.
(2)	The remaining net proceeds shall be remitted to the Forsyth County Tourism Development Authority.
(b)	Use. – A municipality may expend funds distributed to it pursuant to subsection (a) of this section only for economic development and cultural and recreational purposes. The Forsyth County Tourism Development Authority shall expend the funds distributed to it pursuant to subsection (a) of this section to further the development of travel, tourism, and conventions within Forsyth County. "Sec. 29. Appointment and Duties of Tourism Development Authority. (a) When the board of county commissioners adopts a resolution levying a room occupancy tax pursuant to this Part, 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 and shall be composed of the following nine members:
(1)	A county commissioner appointed by the board of county commissioners, who shall serve as an ex officio member.
(2)	A member of the Winston‑Salem Board of Aldermen appointed by the board of aldermen, who shall serve as an ex officio member.
(3)	Four owners or operators of hotels, motels, or other taxable tourist accommodations, two of which own or operate hotels, motels, or other accommodations with more than 100 rental units, one of whom shall be appointed by the Winston‑Salem Board of Aldermen and one by the board of county commissioners; and two of which own or operate hotels, motels, or other accommodations with 100 or fewer rental units, one of whom shall be appointed by the Winston‑Salem Board of Aldermen and one by the board of county commissioners.
(4)	Three individuals involved in the tourist business who have demonstrated an interest in tourist development and do not own or operate hotels, motels, or other taxable tourist accommodations, appointed as follows:  one by the Winston‑Salem Board of Aldermen, one by the Winston‑Salem Area Chamber of Commerce, and one by the board of county commissioners.
	
(a1)	All members of the Authority shall serve without compensation. Vacancies in the Authority shall be filled by the appointing authority of the member creating the vacancy. Members appointed to fill vacancies shall serve for the remainder of the unexpired term for which they are appointed to fill. Members shall serve three‑year terms, except the members appointed pursuant to subdivisions (a)(1) and (2), who shall serve at the pleasure of the appointing board, and the initial members, who shall serve the following terms:
(1)	Of the members appointed pursuant to subdivision (a)(3), one appointee of the board of aldermen and the board of commissioners shall serve a two‑year term and one appointee of the board of aldermen and the board of commissioners shall serve a three‑year term, as designated by the board of aldermen and board of county commissioners;
(2)	Of the three members appointed pursuant to subdivision (a)(4), the appointee of the Winston‑Salem Board of Aldermen shall serve a one‑year term, the appointee of the Winston‑Salem Area Chamber of Commerce shall serve a two‑year term, and the appointee of the board of county commissioners shall serve a three‑year term.
Except for the ex officio members, members may serve no more than two consecutive terms. The members shall elect a chairman, who shall serve for a term of two years. The Authority shall meet at the call of the chairman and shall adopt rules of procedure to govern its meetings. The finance officer for Forsyth County shall be the ex officio finance officer of the Authority.
(b)	The Tourism Development Authority may contract with any person, firm, or agency to advise and assist it in the promotion of travel, tourism, and conventions and may recommend to the board of county commissioners that county staff be employed for this advice and assistance. Any county staff employed under this Part shall be hired and supervised by the Tourism Development Authority, which shall pay the salaries and expenses of this staff.
(c)	The Tourism Development Authority shall report quarterly and at the close of the fiscal year to the board of county commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
	 
"Sec. 30.1. Additional One Percent (1%) Tax. – In addition to the tax authorized by Section 25 of this Part, the Forsyth County Board of Commissioners may levy a room occupancy and tourism development tax of one percent (1%) of the gross receipts derived from the rental of accommodations taxable under that section. The levy, collection, administration, and repeal of the tax authorized by this section, and the use of tax revenue from a tax levied under this section, shall be in accordance with Sections 25 through 29 of this Part. Forsyth County may not levy a tax under this section unless it also levies a tax under Section 25 of this Part.
"Sec. 30.2. Additional Three Percent (3%) Tax. (a) Levy. – In addition to the taxes authorized by Sections 25 and 30.1 of this Part, the Forsyth County Board of Commissioners may levy a room occupancy and tourism development tax of three percent (3%) of the gross receipts derived from the rental of accommodations taxable under those sections. The levy, collection, administration, and repeal of the tax authorized by this section shall be in accordance with Sections 25, 26, and 29 of this Part. Forsyth County may not levy a tax under this section unless it also levies taxes under Sections 25 and 30.1 of this Part.
(b)	Distribution. – The net proceeds of the tax levied under this section shall be distributed as follows:
(1)	Five percent (5%) of the net proceeds shall be divided among the municipalities in Forsyth County, other than Winston‑Salem, on a pro rata basis.
(2)	After subtracting the amount provided in subdivision (1) of this subsection, one‑third of the remaining net proceeds shall be remitted to the Forsyth County Tourism Development Authority.
(3)	After subtracting the amounts provided in subdivisions (1) and (2) of this subsection, ten percent (10%) of the remaining net proceeds shall be divided among those municipalities in Forsyth County, other than Winston‑Salem, in which taxable establishments are located, in proportion to the amount of tax proceeds collected in each municipality.
(4)	After subtracting the amounts provided in subdivisions (1), (2), and (3) of this subsection, the remaining net proceeds shall be divided between Forsyth County and the City of Winston‑Salem on a pro rata basis.
(c)	Use. – A municipality that receives funds pursuant to subdivision (b)(3) of this section shall use at least two‑thirds of all funds it receives pursuant to this Part to promote travel and tourism in the municipality and shall use the remainder for tourism‑related expenditures. A municipality may use no more than ten percent (10%) of the funds it receives pursuant to this Part for its administrative expenses, including salaries and benefits.Forsyth County or a municipality that does not receive funds pursuant to subdivision (b)(3) of this section may expend funds distributed to it pursuant to subsection (b) only for economic development and cultural and recreational purposes. The Forsyth County Tourism Development Authority shall expend the funds distributed to it pursuant to subsection (b) in accordance with Section 28(b) of this Part.
(d)	Definitions. – 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.
(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 entity making the expenditure, are designed to increase the use of lodging and meeting and convention facilities in the area by attracting tourists or business travelers to the area; the term includes tourism‑related capital expenditures."
SECTION 2.  G.S. 153A‑155(g) reads as rewritten:
"(g)	This section applies only to Alleghany, Anson, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret, Caswell, Chatham, Cherokee, Chowan, Clay, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Forsyth, Franklin, Granville, Halifax, Haywood, Madison, Martin, McDowell, Montgomery, Nash, New Hanover, New Hanover County District U, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, Rockingham, Rowan, Sampson, Scotland, Stanly, Swain, Transylvania, Tyrrell, Vance, and Washington Counties, to Watauga County District U, to Yadkin County District Y, and to the Township of Averasboro in Harnett County and the Ocracoke Township Taxing District."
SECTION 3.  This act is effective when it becomes law. 
In the General Assembly read three times and ratified this the 23rd day of June, 2009.

	s/	 Walter H. Dalton
	 President of the Senate

	s/	 Joe Hackney
	 Speaker of the House of Representatives