House committee substitute to the 1st edition makes the following changes.
Repeals Nash County’s (County) authority to impose an additional 2% room occupancy tax for the City of Rocky Mount under Section 1 of SL 1987-32 as amended, so that the County’s authority decreases from a maximum 5% occupancy tax to a 3% maximum. Allows the tax to be levied on gross receipts from the rental of an accommodation within the county. Modifies the definition of the term tourism-related expenditures. Makes conforming changes. Specifies at least one-half of the Nash County Tourism Development Authority (NCTDA) must be individuals who are currently active in the promotion of travel and tourism in the County (previously, required one less than one-half of the members have such experience if there was an odd number of members on the NCTDA). Specifies that no elected official can serve as a member of the NCTDA. Removes provisions allowing the NCTDA to convene upon written request of one-third of its members. Narrows the NCTDA’s duties to expending net tax proceeds to the City of Rocky Mount, as described. Effective July 1, 2025, and applies to gross receipts derived from the rental of an accommodation that a person occupies or has the right to occupy on or after that date. Instructs that the reduction of the room occupancy tax under the act does not affect a liability for a tax that was attached before the effective date of the reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the reduction.
Creates the Rocky Mount District R (District R) taxing district, consisting of the part of Rocky Mount located within Nash County. Makes the Rocky Mount City Council the ex officio governing body of the district with the officers of the City serving as the officers of the governing body of the district. Allows the governing body of the District R to impose a room occupancy tax up to 3% of the gross receipts derived from the rental of an accommodation within the district that is subject to the described State sales tax. Clarifies that the occupancy tax is in addition to State or local sales tax. Provides that the tax must be levied, administered, collected, and repealed as provided in GS 160A-215 (uniform provisions for room occupancy taxes). Requires the District R Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism and the remainder for tourism–related expenditures. Mandates that at least one-third of the members of the TDA must be affiliated with businesses that collect the tax in the district and at least one-half must be currently active in the district’s travel and tourism promotion. Makes conforming changes to GS 160A-215(g) (city occupancy taxes). 
Instructs the County to remit the net proceeds of the 2% occupancy tax that has been collected but not yet remitted to the TDA as soon as practicable after the repeal of the 2% room occupancy tax and the creation of the TDA. Directs for any unexpended net proceeds of the 2% room occupancy tax held by the City of Rocky Mount as of July 1, 2025, to be remitted to the TDA upon its creation to be used for the same purposes as authorized for the City of Rocky Mount under the specified statutes.
Makes organizational and technical changes. Makes conforming changes to the act’s long and short titles and the effective date.

Statutes affected:
Edition 2: 160A-215