GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2005-46
HOUSE BILL 540
AN ACT to amend the halifax county tourism and development tax and to implement a tourism and development tax for the city of roanoke rapids.
The General Assembly of North Carolina enacts:
PART I. HALIFAX COUNTY OCCUPANCY TAX
SECTION 1.1. Chapter 377 of the 1987 Session Laws reads as rewritten:
"Section 1. Occupancy tax. (a) Authorization and
scope. - The Halifax County Board of Commissioners may by resolution,
after not less than 10 days' public notice and after a public hearing held
pursuant thereto, levy a room occupancy tax of three percent (3%) of the
gross receipts derived from the rental of any room, lodging, or similar
accommodation furnished by a hotel, motel, inn, or similar place within the
county that is subject to sales tax imposed by the State under G.S 105-164.4(3).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.
(a1) Authorization of additional tax. - In addition to the tax authorized by subsection (a) of this section, the Halifax County Board of Commissioners may levy an additional room occupancy tax of up to two percent (2%) 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 the provisions of this section. Halifax County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Administration. - A tax levied under this section must be levied, administered, collected, and repealed as provided in G.S. 153A-155.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 section.
(b) Collection.
Every operator of a business subject to the tax levied under this act shall, on
and after the effective date of the levy of the tax, collect the tax. This tax
shall be collected as part of the charge for furnishing a taxable
accommodation. The tax shall be stated and charged separately from the sales
records, and shall be paid by the purchaser to the operator of the business as
trustee for and on account of the county. The tax shall be added to the sales
price and shall be passed on to the purchaser instead of being borne by the
operator of the business. The county shall design, print, and furnish to all
appropriate businesses and persons in the county the necessary forms for filing
returns and instructions to ensure the full collection of the tax. An operator
of a business who collects the occupancy tax levied under this act may deduct
from the amount remitted to the county a discount of three percent (3%) of the
amount collected.
(c) Administration.
The county shall administer a tax levied under this act. A tax levied under
this act is due and payable to the county finance officer in monthly
installments on or before the 15th day of the month following the month in
which the tax accrues. Every person, firm, corporation, or association liable
for the tax shall, on or before the 15th day of each month, prepare and render
a return on a form prescribed by the county. The return shall state the total
gross receipts derived in the preceding month from rentals upon which the tax
is levied.
A return filed with the county finance officer under this
act is not a public record as defined by G.S. 132-1 and may not be
disclosed except as required by law.
(d) Penalties.
A person, firm, corporation, or association who fails or refuses to file the
return required by this act shall pay a penalty of ten dollars ($10.00) for
each day's omission. In case of failure or refusal to file the return or pay
the tax for a period of 30 days after the time required for filing the return
or for paying the tax, there shall be an additional tax, as a penalty, of five
percent (5%) of the tax due for each additional month or fraction thereof until
the tax is paid.
Any person who willfully attempts in any manner to evade a
tax imposed under this act or who willfully fails to pay the tax or make and
file a return shall, in addition to all other penalties provided by law, be
guilty of a misdemeanor and shall be punishable by a fine not to exceed one
thousand dollars ($1,000), imprisonment not to exceed six months, or both. The
Board of Commissioners may, for good cause shown, compromise or forgive the
penalties imposed by this subsection.
(e)(c) Distribution and use of tax
revenue. - Halifax County shallmust, on a quarterly basis,
remit the net proceeds of the occupancy tax to the Halifax County
Tourism Development Authority. The Authority may spend funds remitted to it
under this subsection only to promote travel and tourism in Halifax County, to
sponsor tourist-oriented events and activities in Halifax County, and to
finance tourist-related capital projects in Halifax County. As used in this
subsection, "net proceeds" means gross proceeds less the cost to the
county of administering and collecting the tax, as determined by the finance
officer.must use at least two-thirds of the funds remitted to it under
this subsection to promote travel and tourism in Halifax County and must use
the remainder for tourism-related expenditures.
The following definitions apply to 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 the 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 by attracting tourists or business travelers to the county. The term includes tourism-related capital expenditures.
(f) Effective
date of levy. A tax levied under this act shall become effective on the date
specified in the resolution levying the tax. That date must be the first day of
a calendar month, however, and may not be earlier than the first day of the
second month after the date the resolution is adopted.
(g) Repeal. A
tax levied under this act may be repealed by a resolution adopted by the
Halifax County Board of Commissioners. Repeal of a tax levied under this act
does not affect a liability for a tax that was 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.
Sec. 2. Tourism Development Authority. (a) Appointment
and membership. - When the Board of Commissioners adopts a resolution
levying a room occupancy tax under this act, it shallmust 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.
The resolution shallmust provide for the membership of the
Authority including the members' qualifications and terms of office, and for
the filling of vacancies on the Authority. At least one-fifth 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.
The Board of CommissionersAuthority shallmust
designate one member of the Authority as chair and shall determine the
compensation, if any, to be paid to members of the Authority.chair and
one member as treasurer.
The Authority shallmust meet at the call of the
chair and shallmust adopt rules of procedure to govern its
meetings. The Finance Officer for Halifax County shall be the ex officio
finance officer of the Authority.
(b) Duties. - The
Authority must expend the net proceeds of the tax levied under this act for the
purposes provided in Section 1 of this act. The Authority shallmust
promote travel, tourism, and conventions in the county, sponsor tourist-related
events and activities in the county, and finance tourist-related capital
projects in the county.
(c) Reports. - The
Authority shallmust 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. 3. This act is effective upon ratification."
SECTION 1.2. G.S. 153A-155(g) reads as rewritten:
"(g) This section applies only to Alleghany, Anson, Brunswick, Buncombe, Cabarrus, Camden, Carteret, Craven, Cumberland, Currituck, Dare, Davie, Durham, Granville, Halifax, Madison, Montgomery, Nash, New Hanover, Pender, Person, Randolph, Richmond, Rowan, Scotland, Stanly, Transylvania, Tyrrell, Vance, and Washington Counties, and to the Township of Averasboro in Harnett County."
PART II. CITY OF ROANOKE rapids OCCUPANCY TAX
SECTION 2.1. Occupancy tax. - (a) Authorization and Scope. - The Roanoke Rapids City Council may levy a room occupancy tax of up to one percent (1%) 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.
SECTION 2.1.(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 2.2.(a) Distribution and Use of Tax Revenue. - The City of Roanoke Rapids shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Halifax County Tourism Development Authority. The Halifax County Tourism Development Authority must hold the funds in a separate account and administer them separately from proceeds of the Halifax County occupancy tax. The Authority shall use at least two-thirds of the funds remitted to it under this subsection to promote travel and tourism in the City of Roanoke Rapids and shall use the remainder for tourism-related expenditures in the City of Roanoke Rapids.
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, promote and support the Roanoke Rapids entertainment district, 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 city or to attract tourists or business travelers to the city. The term includes tourism-related capital expenditures.
SECTION 2.2.(b) Reports. - The Authority shall report quarterly and at the close of the fiscal year to the Roanoke Rapids 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 2.3. G.S. 160A-215(g) reads as rewritten:
"(g) This section applies only to Beech Mountain District W, to the Cities of Gastonia, Goldsboro, Greensboro, High Point, Kings Mountain, Lexington, Lincolnton, Lumberton, Monroe, Mount Airy, Roanoke Rapids, Shelby, Statesville, Washington, and Wilmington, to the Towns of Beech Mountain, Blowing Rock, Carolina Beach, Carrboro, Franklin, Kure Beach, Jonesville, Mooresville, North Topsail Beach, Selma, Smithfield, St. Pauls, Wilkesboro, and Wrightsville Beach, and to the municipalities in Avery and Brunswick Counties."
PART III. EFFECTIVE DATE
SECTION 3. This act is effective when it becomes law. Halifax County must ensure that the membership of the Tourism Development Authority is in compliance with the requirements of this act on or before January 1, 2006.
In the General Assembly read three times and ratified this the 17th day of May, 2005.
s/ Beverly E. Perdue
President of the Senate
s/ Richard T. Morgan
Speaker Pro Tempore of the House of Representatives