A BILL TO BE ENTITLED
AN ACT to conform and increase the yancey county occupancy tax authorization.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 140 of the 1987 Session Laws, as amended by Section 21(l) of S.L. 2007‑527, reads as rewritten:
"Section 1.  Occupancy Tax.  (a) Authorization and Scope. – The Yancey 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 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 or room occupancy tax.
(a1)	Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Yancey 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 shall be in accordance with the provisions of this section. The governing body of a 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 – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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. – Yancey County shall, on a quarterly basis, remit the net proceeds of the tax to the Yancey County Tourism Development Authority. The 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 county. 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 county.
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 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.

"Sec. 2.  Yancey County Tourism Development Authority. – When the Yancey County Board of Commissioners adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the Yancey 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 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 Yancey County shall be the ex officio finance officer of the Authority.
	
(c)	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.
(d)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Yancey 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 2.  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, Graham, Granville, Halifax, Haywood, Henderson, Jackson, Madison, Martin, McDowell, Mitchell, Montgomery, Moore, Nash, New Hanover, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Swain, Transylvania, Tyrrell, Vance, Washington, Wayne, Wilson, and Yancey 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."
SECTION 3.  This act is effective when it becomes law.