A BILL TO BE ENTITLED
AN ACT to increase the authorization for sampson county occupancy tax; to modify the yadkin county occupancy tax; to modify the use of the proceeds of the jacksonville city occupancy tax; to authorize the city of sanford to levy an occupancy tax; to create a special taxing district in harnett county and authorize that special taxing district to levy an occupancy tax; AND TO make changes to the cumberland county occupancy tax and prepared food tax.
The General Assembly of North Carolina enacts:

part I. increase the authorization for sampson county to levy an occupancy tax
SECTION 1.1.  S.L. 2007‑63 reads as rewritten:
"SECTION 1. Occupancy tax. – (a) Authorization and Scope. – The Board of Commissioners of Sampson County 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 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.
"SECTION 1.(a1)  Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Board of Commissioners of Sampson County 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. Sampson County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
"SECTION 1.(b)  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 – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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.
…
"SECTION 1.2. Tourism Development Authority. – (a) Appointment and Membership. – When the Board of Commissioners adopts a resolution levying a room occupancy tax under subsection (a) of Section 1 of this act, it shall also adopt a resolution creating the Sampson County 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 county, and at least one‑half of the members shall be individuals who are 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 Finance Officer for Sampson County shall be the ex officio finance officer of the Authority.
...."

part ii. modify the authorizations for occupancy tax levies inside yadkin county
SECTION 2.1.  Section 2 of S.L. 2007‑340 reads as rewritten:
"SECTION 2. Yadkin County District Y Created. – Yadkin County District Y is created as a taxing district. Its jurisdiction consists of that part of Yadkin County that is located outside of the Town of Jonesville. Yadkin County District Y is a body politic and corporate and has the power to carry out the provisions of this act. The Yadkin 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 2.2.  The governing body of Yadkin County District Y and the Yadkin County Board of Commissioners shall adopt any resolutions or modify any adopted resolutions, as needed, to carry out the provisions of this act.
SECTION 2.3.  Sections 7 and 8 of S.L. 2007‑340 are repealed.
SECTION 2.4.  G.S. 160A‑215(g) reads as rewritten:
"(g)	Applicability. – Subsection (c) of this section applies to all cities that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection (c) supersedes that provision. The remainder of this section applies only to Beech Mountain District W, to the Cities of Belmont, Conover, Eden, Elizabeth City, Gastonia, Goldsboro, Greensboro, Hickory, High Point, Jacksonville, Kings Mountain, Lake Santeetlah, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Monroe, Mount Airy, Mount Holly, Reidsville, Roanoke Rapids, Salisbury, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Selma, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, and Yanceyville, and to the municipalities in Avery and Brunswick Counties."
SECTION 2.5.  This Part becomes effective July 1, 2016.

part iii. modify the use of occupancy tax proceeds for the city of jacksonville
SECTION 3.(a)  Section 1.1(d) of S.L. 2009‑429 reads as rewritten:
"SECTION 1.1.(d)  Distribution and Use of Tax Revenue. – The City of Jacksonville shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Jacksonville Tourism Development Authority. The Authority shall use at least two‑thirds of the funds remitted to it under this subsection for tourism‑related expenditures and shall use the remainder to promote travel and tourism in Jacksonville. Of the funds that are used for tourism‑related expenditures, one‑half of those funds must be used for the construction of a sports complex by the City of Jacksonville."
SECTION 3.(b)  Section 1.1(d) of S.L. 2009‑429, as amended by subsection (a) of this section, reads as rewritten:
"SECTION 1.1.(d)  Distribution and Use of Tax Revenue. – The City of Jacksonville shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Jacksonville 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 and shall use the remainder for tourism‑related expenditures in Jacksonville."
SECTION 3.(c)  Subsection (a) of this section is effective when it becomes law and expires on July 1, 2026. Subsection (b) of this section becomes effective on July 1, 2026. The remainder of this section is effective when it becomes law.

part iv. authorize the city of sanford to levy an occupancy tax
SECTION 4.1.  Occupancy Tax. – (a) Authorization and Scope. – The Sanford 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.
SECTION 4.1.(b)  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.
SECTION 4.1.(c)  Distribution and Use of Tax Revenue. – The City of Sanford shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Sanford Tourism Development Authority. The Authority shall use two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in the City of Sanford and shall use the remainder for the operation, maintenance, promotion, and renovation of the Dennis A. Wicker Civic Center. Any funds dedicated under this subsection for the Dennis A. Wicker Civic Center that are not spent or obligated by the close of a fiscal year may be used by the Authority for the promotion of travel and tourism in the City of Sanford.
The following definitions apply in this subsection:
(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 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.
SECTION 4.2.  Sanford Tourism Development Authority. – (a) Appointment and Membership. – When the Sanford 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 must be individuals who are affiliated with businesses that collect the tax in the city, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the city. The 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 Sanford shall be the ex officio finance officer of the Authority.
SECTION 4.2.(b)  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 city and sponsor tourism‑related events and activities in the city.
SECTION 4.2.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Sanford City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the city council may require.
SECTION 4.3.  G.S. 160A‑215(g) reads as rewritten:
"(g)	Applicability. – Subsection (c) of this section applies to all cities that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection (c) supersedes that provision. The remainder of this section applies only to Beech Mountain District W, to the Cities of Belmont, Conover, Eden, Elizabeth City, Gastonia, Goldsboro, Greensboro, Hickory, High Point, Jacksonville, Kings Mountain, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Monroe, Mount Airy, Mount Holly, Reidsville, Roanoke Rapids, Salisbury, Sanford, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Selma, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, and Yanceyville, and to the municipalities in Avery and Brunswick Counties."

part V. harnett county occupancy tax
SECTION 5.1.(a)  District H Created. – Harnett County District H is created as a taxing district. Its jurisdiction consists of all of Harnett County exclusive of the Averasboro Township. Harnett County District H is a body politic and corporate and has the power to carry out the provisions of this section. The Harnett County Board of Commissioners shall serve ex officio as the governing body of the district, and the officers of the board of commissioners 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 5.1.(b)  Authorization and Scope. – The governing body of Harnett County District H 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 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.
SECTION 5.1.(c)  Administration. – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155 as if Harnett County District H were a county. The penalties provided in G.S. 153A‑155 apply to a tax levied under this section.
SECTION 5.1.(d)  Distribution and Use of Tax Revenue. – Harnett County District H shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Harnett County District H Tourism Development Authority. The Harnett County District H Tourism Development Authority shall use at least two‑thirds of the proceeds to promote travel and tourism 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 the jurisdiction of Harnett County District H.
The following definitions apply in this subsection:
(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 the county or to attract tourists or business travelers to the district. The term includes tourism‑related capital expenditures.
SECTION 5.2.  Harnett County District H Tourism Development Authority. – (a) Appointment and Membership. – When the governing body of Harnett County District H adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the Harnett County District H 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 who are affiliated with businesses that collect the tax in the district, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the district. The governing body 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 Harnett County shall be the ex officio finance officer of the Authority.
SECTION 5.2.(b)  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 and tourism in the district and make tourism‑related expenditures in the district.
SECTION 5.2.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Harnett 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.
SECTION 5.3.  G.S. 153A‑155(g) reads as rewritten:
"(g)	Applicability. – Subsection (c) of this section applies to all counties and county districts that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection (c) supersedes that provision. The remainder of 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, Edgecombe, Forsyth, Franklin, Granville, Halifax, Haywood, Henderson, Jackson, Madison, Martin, McDowell, Montgomery, Moore, Nash, New Hanover, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Swain, Transylvania, Tyrrell, Vance, Washington, and Wilson Counties, to Harnett County District H, New Hanover County District U, Surry County District S, Watauga County District U, Wilkes County District K, Yadkin County District Y, and the Township of Averasboro in Harnett County and the Ocracoke Township Taxing District."

part vi. cumberland county occupancy tax changes
SECTION 6.1.(a)  Chapter 983 of the 1983 Session Laws, as amended by Chapter 484 of the 2001, reads as rewritten:
"Section 1.  It is the purpose and intent of this act to provide Cumberland County the authority to levy a transient occupancy tax as hereinafter set forth.
"Sec. 2.  Occupancy Tax. – (a) Authorization and Scope. – Cumberland County may levy a room occupancy tax not to exceed three percent (3%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, or inn located in Cumberland County that is subject to the 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.
(a1)	Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Cumberland 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 that subsection. The levy, collection, administration, use, and repeal of the tax authorized by this subsection shall be in accordance with this act. Cumberland County may not levy a tax under this subsection unless it also levies a tax under subsection (a) of this section.

	
	
(b)	Administration. – A tax levied under this act 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 act.
"Sec. 3.  Repealed.
"Sec. 4.  Distribution and Use of Tax Revenue. – The net proceeds of the occupancy tax levied under this act shall be retained by the county and shall be used as follows:
(1)	Forty‑seven percent (47%) shall be invested in capital needs and improvements of facilities that enhance travel and tourism within Cumberland County.
(2)	Twenty‑six percent (26%) shall be disbursed through contracting with community organizations or private vendors to promote, market, and advertise festivals, athletic events and tournaments, arts venues, cultural arts, community markets, and other events that encourage tourism and travel to Cumberland County.
(3)	Twenty percent (20%) shall be disbursed through contracting with community organizations or private vendors to market the community by advertising and promoting travel, tourism, and conventions within Cumberland County.
(4)	Seven percent (7%) shall be used to market Cumberland County for economic development purposes.
	
"
"Sec. 4.2.  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 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.
	
"

	

	
	
"Sec. 6.  Chapter 360 of the 1965 Session Laws is amended as follows:
(1)	by deleting the word "Treasurer" in the third sentence of Section 1(b)(3) of that act and substituting the words "County Manager"; and 
(2)	by adding a new sentence at the end of Section 3 of that act to read: "Occupancy tax revenues as authorized in AN ACT TO AUTHORIZE AND IMPLEMENT AN OCCUPANCY TAX IN CUMBERLAND COUNTY may be utilized by the Auditorium Commission, as approved by the board of county commissioners, in aiding and encouraging convention and visitor promotion in Cumberland County.
"Sec. 7.  This act is effective upon ratification."
SECTION 6.1.(b)  Within 60 days of the effective date of this act, the Cumberland County Board of Commissioners shall adopt a resolution dissolving the Cumberland County Tourism Development Authority.
SECTION 6.2.(a)  Section 7 of Chapter 413 of the 1993 Session Laws is repealed.
SECTION 6.2.(b)  Section 8 of Chapter 413 of the 1993 Session Laws reads as rewritten:
"Sec. 8.  Use of Proceeds. – The county shall retain the proceeds of the prepared food and beverage tax and shall use the proceeds as follows:
(1)	To provide for, when due, payments for the current fiscal year with respect to any financing for new arena facilities or for the expansion of the existing arena facilities, which may include off‑street parking for use in conjunction with the facilities.
(2)	To pay other costs of acquiring, constructing, maintaining, operating, marketing, and promoting the new arena or expanded arena facilities.
(3)	For any purpose that promotes or enhances tourism, travel, arts, entertainment, and sports venues and activities within Cumberland County.
The Commission may contract with any person, agency, association, or nonprofit corporation to carry out the activities and programs for which the tax proceeds may be expended. All contracts entered into pursuant to this subsection shall require an annual financial audit of any funds expended and a performance audit of contractual obligations."
SECTION 6.2.(c)  Section 11 of Chapter 413 of the 1993 Session Laws reads as rewritten:
"Sec. 11.  Repeal. – A tax levied under this act may be repealed by a resolution adopted by the Cumberland County Board of Commissioners. Repeal of a tax levied under this act shall become effective on the first day of a month and may not become effective until the end of the fiscal year in which the repeal resolution was adopted. Repeal of a tax levied under this act does not affect a liability for a tax that has attached before the effective date of the repeal, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal."

part viI. effective date
SECTION 7.  Except as otherwise provided, this act is effective when it becomes law.