Bill Text: NC H444 | 2017-2018 | Regular Session | Amended
Bill Title: Rowan County Occupancy Tax Changes
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2017-06-20 - Ref To Com On Rules and Operations of the Senate [H444 Detail]
Download: North_Carolina-2017-H444-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
H 1
HOUSE BILL 444
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Short Title: Rowan County Municip. Occupancy Tax Auth. |
(Local) |
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Sponsors: |
Representative Ford. For a complete list of sponsors, refer to the North Carolina General Assembly web site. |
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Referred to: |
State and Local Government II, if favorable, Finance |
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March 23, 2017
A BILL TO BE ENTITLED
AN ACT to authorize the levy of an occupancy tax for the municipalities in rowan county not currently levying an occupancy tax.
The General Assembly of North Carolina enacts:
Part I. Landis occupancy tax
SECTION 1.1. Occupancy Tax. – (a) Authorization and Scope. – The Landis Town 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 town 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 1.1.(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 – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A‑215.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 1.1.(c) Distribution and Use of Tax Revenue. – Landis shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Landis 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 in Landis and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 1.2. Landis Tourism Development Authority. – (a) Appointment and Membership. – When the Landis Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 Landis shall be the ex officio finance officer of the Authority.
SECTION 1.2.(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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 1.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Landis Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part II. Faith occupancy tax
SECTION 2.1. Occupancy Tax. – (a) Authorization and Scope. – The Faith Town 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 town 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 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 2.1.(c) Distribution and Use of Tax Revenue. – Faith shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Faith 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 in Faith and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 2.2. Faith Tourism Development Authority. – (a) Appointment and Membership. – When the Faith Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 Faith shall be the ex officio finance officer of the Authority.
SECTION 2.2.(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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 2.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Faith Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part III. Spencer occupancy tax
SECTION 3.1. Occupancy Tax. – (a) Authorization and Scope. – The Spencer Town 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 town 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 3.1.(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 3.1.(c) Distribution and Use of Tax Revenue. – Spencer shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Spencer 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 in Spencer and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 3.2. Spencer Tourism Development Authority. – (a) Appointment and Membership. – When the Spencer Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 Spencer shall be the ex officio finance officer of the Authority.
SECTION 3.2.(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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 3.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Spencer Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part IV. East Spencer occupancy tax
SECTION 4.1. Occupancy Tax. – (a) Authorization and Scope. – The East Spencer Town 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 town 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. – East Spencer shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the East Spencer 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 in East Spencer and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 4.2. East Spencer Tourism Development Authority. – (a) Appointment and Membership. – When the East Spencer Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 East Spencer 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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 4.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the East Spencer Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part V. China Grove occupancy tax
SECTION 5.1. Occupancy Tax. – (a) Authorization and Scope. – The China Grove Town 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 town 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 5.1.(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 5.1.(c) Distribution and Use of Tax Revenue. – China Grove shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the China Grove 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 in China Grove and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 5.2. China Grove Tourism Development Authority. – (a) Appointment and Membership. – When the China Grove Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 China Grove 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, tourism, and conventions in the town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 5.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the China Grove Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part VI. Rockwell occupancy tax
SECTION 6.1. Occupancy Tax. – (a) Authorization and Scope. – The Rockwell Town 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 town 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 6.1.(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 6.1.(c) Distribution and Use of Tax Revenue. – Rockwell shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Rockwell 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 in Rockwell and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 6.2. Rockwell Tourism Development Authority. – (a) Appointment and Membership. – When the Rockwell Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 Rockwell shall be the ex officio finance officer of the Authority.
SECTION 6.2.(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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 6.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Rockwell Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part VII. Granite Quarry occupancy tax
SECTION 7.1. Occupancy Tax. – (a) Authorization and Scope. – The Granite Quarry Town 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 town 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 7.1.(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 7.1.(c) Distribution and Use of Tax Revenue. – Granite Quarry shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Granite Quarry 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 in Granite Quarry and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 7.2. Granite Quarry Tourism Development Authority. – (a) Appointment and Membership. – When the Granite Quarry Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 Granite Quarry shall be the ex officio finance officer of the Authority.
SECTION 7.2.(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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 7.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Granite Quarry Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
Part VIII. Kannapolis occupancy tax
SECTION 8.1. Occupancy Tax. – (a) Authorization and Scope. – The Kannapolis 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 8.1.(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 8.1.(c) Distribution and Use of Tax Revenue. – Kannapolis shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Kannapolis 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 in Kannapolis and shall use the remainder for tourism‑related expenditures.
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.
(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 8.2. Kannapolis Tourism Development Authority. – (a) Appointment and Membership. – When the Kannapolis 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 Kannapolis shall be the ex officio finance officer of the Authority.
SECTION 8.2.(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, sponsor tourist‑related events and activities in the city, and finance tourist‑related capital projects in the city.
SECTION 8.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Kannapolis City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the city council may require.
Part IX. Cleveland occupancy tax
SECTION 9.1. Occupancy Tax. – (a) Authorization and Scope. – The Cleveland Town 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 town 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 9.1.(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 9.1.(c) Distribution and Use of Tax Revenue. – Cleveland shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Cleveland 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 in Cleveland and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. – Gross proceeds less the cost to the town 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 a town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures.
SECTION 9.2. Cleveland Tourism Development Authority. – (a) Appointment and Membership. – When the Cleveland Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a town 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 town, and at least one‑half of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The town 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 Cleveland shall be the ex officio finance officer of the Authority.
SECTION 9.2.(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 town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.
SECTION 9.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Cleveland Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
part X. Uniform Provisions
SECTION 10. 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, Kannapolis, 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, China Grove, Cleveland, Cooleemee, Cramerton, Dallas, Dobson, East Spencer, Elkin, Faith, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Landis, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Rock Quarry, Rockwell, Selma, Spencer, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, and Yanceyville, and to the municipalities in Avery and Brunswick Counties."
Part Xi. Effective date
SECTION 11. This act is effective when it becomes law.
