GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2006-127
HOUSE BILL 350
AN ACT to authorize martin county to levy an additional three percent room occupancy and tourism development tax and to make other administrative changes.
The General Assembly of North Carolina enacts:
SECTION 1. S.L. 1991-80 reads as rewritten:
"Section 1. Occupancy Tax. - (a)
Authorization and scope.Scope. - The Martin 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 up to three percent (3%) of the gross receipts derived from the rental of
any room, lodging, or similar 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, by summer camps, or by
businesses that offer to rent no more than five units.
(a1) Authorization of Additional Tax. - In addition to the tax authorized by subsection (a) of this section, the Martin 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 must be in accordance with the provisions of this section. Martin County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b) Collection.
Every operator of a business subject to the tax levied under this section
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.
(c) Administration. The
county shall administer a tax levied under this section. A tax levied under
this section is due and payable to the county finance officer in monthly
installments on or before the fifteenth 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 fifteenth 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
section is not a public record as defined by G.S. 132-1 and may not be
disclosed except as required by law. - 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.
(d) Penalties.
A person, firm, corporation, or association who fails or refuses to file the
return required by this section shall be subject to and 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 in addition to any other penalty,
with an additional tax of five percent (5%) for each additional month or
fraction thereof until the tax is paid. The board of commissioners may, for
good cause shown, compromise or forgive the additional tax penalties imposed by
this subsection.
Any person who willfully attempts in any manner to evade a
tax imposed under this section 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.
(e) Distribution and useUse
of tax revenue.Tax Revenue. - Martin County shall, on a monthlyquarterly
basis, remit the net proceeds of the occupancy tax to the Martin County Travel
and Tourism Development Authority. The Authority may spend funds
remitted to it under this subsection only to further the development of travel
and tourism and cultural, recreational, and historic activities in Martin
County through advertising and promotion, to sponsor tourist-oriented events
and activities in Martin County, and to finance tourist-related capital
activities and projects in Martin County. As used in this subsection, "net
proceeds"means gross The Authority shall use at least two-thirds of
the funds remitted to it under this subsection to promote travel and tourism in
Martin County and shall use the remainder for tourism-related expenditures.
The following definitions apply in this act:
(1) Net
proceeds. - Gross proceeds less the cost to the county of administering and
collecting the tax, which maytax, as determined by the finance
officer, not to exceed three percent (3%) of the first five
hundred thousand dollars ($500,000) of gross proceeds.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 a county or to attract tourists or business travelers to the county. The term includes tourism-related capital expenditures.
(f) Effective
date of levy. A tax levied under this section 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 section may be repealed by a resolution adopted by the
Martin County Board of Commissioners. Repeal of a tax levied under this section
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 section 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. Martin County Travel and Tourism Development
Authority. - (a) Appointment and membership.Membership.
- When the board of commissioners adopts a resolution levying a room
occupancy tax under this act, it shall also adopt a resolution creating the
Martin County Travel and Tourism Development Authority, which
shall be a public authority under the Local Government Budget and Fiscal Control
Act. The resolution shall provide that the Authority shall be composed of the
following 12 members:
(1) A Martin County Commissioner appointed by the Martin County Board of Commissioners.
(2) Two owners or operators of restaurants, motels, hotels, or other taxable accommodations in Martin County that have at least five units, nominated by representatives of this industry, both to be appointed by the Martin County Board of Commissioners.
(3) One member selected by the Martin County Chamber of Commerce to be appointed by the Martin County Board of Commissioners.
(4) One member appointed by the Martin County Board of Commissioners selected from the Martin County Economic Development Commission.
(5) Five members, one appointed by each member of the Martin County Board of Commissioners.
(6) One member appointed by the Martin County Board of Commissioners selected from the Martin County Historical Society.
(7) One member appointed by the Martin County Board of Commissioners selected from the Robersonville Downtown Merchants Association.
The appointees shall be made from throughout the County by the Martin County Board of Commissioners. At least one-third of the members must be individuals affiliated with businesses that collect the tax in the county and at least one-half of the members must be individuals currently active in the promotion of travel and tourism in the county. All members of the Authority shall serve without compensation. Vacancies shall be filled in the same manner as original appointments. Members appointed to fill vacancies shall serve for the remainder of the unexpired term. The Authority shall elect each year from its membership a Chair. No member may serve as Chair more than two one-year terms in succession. The Authority shall meet at the call of the Chair or of any three members and shall adopt rules of procedure to govern its meetings. The Finance Officer for Martin County shall be the ex officio finance officer of the Authority.
(b) Terms of office. - Members of the Authority shall serve three-year terms except that the Martin County Commissioner appointed pursuant to subdivision (a)(1) shall be appointed yearly by the chairman of the board of commissioners and initial appointees shall serve the following terms:
(1) The Martin County Commissioner appointed pursuant to subdivision (a)(1): one year.
(2) One representative of the motel and restaurant industry appointed pursuant to subdivision (a)(2): one year.
(3) One representative of the motel and restaurant industry appointed pursuant to subdivision (a)(2): three years.
(4) The representative of the Martin County Chamber of Commerce appointed pursuant to subdivision (a)(3): three years.
(5) The representative of the Martin County Economic Development Commission appointed pursuant to subdivision (a)(4): two years.
(6) Three members appointed by Martin County Commissioners pursuant to subdivision (a)(5): one year.
(7) Two representatives appointed by Martin County Commissioners pursuant to subdivision (a)(5): three years.
(8) The representative of the Martin County Historical Society appointed pursuant to subdivision (a)(6): two years.
(9) The representative of the Robersonville Downtown Merchants Association appointed pursuant to subdivision (a)(7): three years.
(c) Limitation on terms. - No member of the Authority shall serve more than two consecutive three-year terms.
(d) Powers and duties.
The Authority may contract with any person, firm, or agency to assist it in
carrying out the purposes for which the tax proceeds levied by this act may be
expended.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 county, sponsor tourist-related
events and activities in the county, and finance tourist-related capital
projects in the county. The board of county commissioners may from time to
time determine an appropriate percentage not to exceed five percent (5%) of net
proceeds that may be expended for administrative services.
(e) Reports. - The Authority shall report quarterly and at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
(f) Notwithstanding
the provisions of this act, the board of commissioners may abolish the Martin
County Travel and Tourism Authority and itself function and carry out the
duties of the Authority provided in this act.
"Sec. 3. This act is effective upon ratification."
SECTION 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, Duplin, Durham, Franklin, Granville, Halifax, Madison, Martin, Montgomery, Nash, New Hanover, Pasquotank, Pender, Person, Randolph, Richmond, Rockingham, Rowan, Scotland, Stanly, Transylvania, Tyrrell, Vance, and Washington Counties, to Watauga County District U, and to the Township of Averasboro in Harnett County."
SECTION 3. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 19th day of July, 2006.
s/ Beverly E. Perdue
President of the Senate
s/ James B. Black
Speaker of the House of Representatives