Bill Summary – FastDemocracy

H.B. 220
                         GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                          Feb 28, 2023
                                     SESSION 2023                                    HOUSE PRINCIPAL CLERK
     H                                                                                             D
                                 HOUSE BILL DRH10114-NIxf-82A
     Short Title:   Lansing and Jefferson Occ. Tax Authorization.                             (Local)
     Sponsors:      Representative Pickett.
     Referred to:
                                A BILL TO BE ENTITLED
 AN ACT TO AUTHORIZE THE TOWNS OF LANSING AND JEFFERSON TO LEVY AN
    OCCUPANCY TAX.
 The General Assembly of North Carolina enacts:
 5
 PART I. TOWN OF LANSING OCCUPANCY TAX
             SECTION 1. Occupancy tax. – (a) Authorization and Scope. – The Town of Lansing
 Board of Aldermen may levy a room occupancy tax of up to three percent (3%) of the gross
 receipts derived from the rental of an accommodation 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.(b) Administration. – A tax levied under this Part 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 administered, collected, and repealed as provided in G.S. 160A-215.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 Part.
             SECTION 1.(c) Distribution and Use of Tax Revenue. – The Town of Lansing shall,
 on a quarterly basis, remit the net proceeds of the occupancy tax to the Lansing Tourism
 Development Authority. The Authority shall use at least two-thirds of the funds to promote travel
 and tourism and shall use the remainder for tourism-related expenditures in the town.
             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
                    accommodations, meeting facilities, or convention facilities in the town or to
                    attract tourists or business travelers to the town. The term includes
                    tourism-related capital expenditures.
             SECTION 2. Tourism Development Authority. – (a) Appointment and Membership.
 – When the Town of Lansing Board of Aldermen adopts a resolution levying a room occupancy
                                *DRH10114-NIxf-82A*
     General Assembly Of North Carolina                                                   Session 2023
 tax under this Part, 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 shall be individuals who are affiliated with businesses that collect tax in the town,
 and at least one-half of the members shall be individuals who are currently active in the
 promotion of travel and tourism in the town. The Town of Lansing Board of Aldermen 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 Town of Lansing shall be the ex officio finance
 officer of the Authority.
             SECTION 2.(b) Duties. – The Authority shall expend the net proceeds of the tax
 levied under this Part for promoting travel and tourism and for tourism-related expenditures as
 provided in this Part.
             SECTION 2.(c) Reports. – The Authority shall report quarterly and at the close of
 the fiscal year to the Town of Lansing Board of Aldermen on its receipts and expenditures for
 the preceding quarter and for the year in such detail as the Board of Aldermen may require.
             SECTION 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, Lake Santeetlah, 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, Lansing, 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, Yanceyville, to the municipalities in
 Avery and Brunswick Counties, and to Saluda District D."
             SECTION 4. Part I of this act is effective when it becomes law.
35
 PART II. TOWN OF JEFFERSON OCCUPANCY TAX
             SECTION 5. Occupancy tax. – (a) Authorization and Scope. – The Town of
 Jefferson may levy a room occupancy tax of up to three percent (3%) of the gross receipts derived
 from the rental of an accommodation 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.(b) Administration. – A tax levied under this Part 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 Part.
             SECTION 5.(c) Distribution and Use of Tax Revenue. – The Town of Jefferson
 shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Jefferson Tourism
 Development Authority. The Authority shall use at least two-thirds of the funds to promote travel
 and tourism and shall use the remainder for tourism-related expenditures in the town.
             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
     Page 2                                                                      DRH10114-NIxf-82A
     General Assembly Of North Carolina                                                   Session 2023
                     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
                     accommodations, meeting facilities, or convention facilities in the town or to
                     attract tourists or business travelers to the town. The term includes
                     tourism-related capital expenditures.
             SECTION 6. Tourism Development Authority. – (a) Appointment and Membership.
 – When the Town of Jefferson Board of Aldermen adopts a resolution levying a room occupancy
 tax under this Part, 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 shall be individuals who are affiliated with businesses that collect tax in the town,
 and at least one-half of the members shall be individuals who are currently active in the
 promotion of travel and tourism in the town. The Town of Jefferson Board of Aldermen 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 Town of Jefferson shall be the ex officio finance
 officer of the Authority.
             SECTION 6.(b) Duties. – The Authority shall expend the net proceeds of the tax
 levied under this Part for promoting travel and tourism and for tourism-related expenditures as
 provided in this Part.
             SECTION 6.(c) Reports. – The Authority shall report quarterly and at the close of
 the fiscal year to the Town of Jefferson Board of Aldermen on its receipts and expenditures for
 the preceding quarter and for the year in such detail as the Board of Aldermen may require.
             SECTION 7. 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, 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, Jefferson, 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, Yanceyville, to the municipalities in
 Avery and Brunswick Counties, and to Saluda District D."
             SECTION 8. Part II of this act is effective when it becomes law.
49
 PART III. EFFECTIVE DATE
     DRH10114-NIxf-82A                                                                           Page 3
    General Assembly Of North Carolina                                        Session 2023
          SECTION 9. Except as otherwise provided, this act is effective when it becomes
 law.
    Page 4                                                            DRH10114-NIxf-82A
Statutes affected: 
Filed: 160A-215
Edition 1: 160A-215
Edition 2: 160A-215
Edition 3: 153A-155, 160A-215