GENERAL ASSEMBLY OF NORTH CAROLINA
The General Assembly of North Carolina enacts:
Section 1. Section 1(b) of Chapter 32 of the 1987 Session Laws reads as rewritten:
"(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. equal to the discount the State allows the operator for
collecting State sales and use taxes."
Sec. 2. Section 1(d) of Chapter 32 of the 1987 Session Laws reads as rewritten:
"(d) Penalties. A person, firm, corporation, or
association who fails or refuses to file the return required by this act
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 thirty
(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. Any person who willfully attempts in any manner to evade
the occupancy tax levied 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. is subject to the civil and
criminal penalties set by G.S. 105-236 for failure to pay or file a return for
State sales and use taxes. The Board of Commissioners has the same authority
to waive the penalties for a room occupancy tax that the Secretary of Revenue
has to waive the penalties for State sales and use taxes."
Sec. 3. Section 1(e) of Chapter 32 of the 1987 Session Laws reads as rewritten:
"(e) Distribution and use of tax revenue. Nash County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the
Nash Tourism Development Authority. The Authority
may shall spend
at least two-thirds of the funds remitted to it under this subsection
only to promote travel and tourism in Nash County, to sponsor
tourist-oriented events and activities in Nash County, and to finance
tourist-related capital projects in Nash County, such as the construction of a
civic center and utilities within Nash County. As used in this subsection, 'net
proceeds' means gross and shall spend the remainder on tourism-related
expenditures. The following definitions apply in 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. officer, not to exceed seven percent (7%) of
the amount collected.
(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 are designed to increase the use of lodging facilities in a county or to attract tourists or business travelers to the county and expenditures incurred by the county in collecting the tax. The term includes expenditures to construct, maintain, operate, or market a convention center and other expenditures that, in the judgment of the Authority, will facilitate and support tourism."
Sec. 4. Section 2(a) of Chapter 32 of the 1987 Session Laws reads as rewritten:
"(a) Appointment and membership. When the Board of
Commissioners adopts a resolution levying a room occupancy tax under this act,
it shall 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 shall provide for the membership of the
Authority including the members' qualifications and terms of office, Authority,
the terms of office of the members, and for the filling of vacancies
on the Authority. The members of the Authority shall be citizens of Nash
County. If the authority has an even number of members, then at least one-half
of the members shall have experience in the promotion of travel and tourism.
If the Authority has an odd number of members, then at least one less than
one-half of the members shall have experience in the promotion of travel and
tourism. The Board of Commissioners 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 or upon a written request signed by at least one-third of its members and shall adopt rules of procedure to govern its meetings. The Finance Officer for Nash County shall be the ex officio finance officer of the Authority."
Sec. 5. The Nash Tourism Development Authority has the sole power to determine if an expenditure of occupancy tax proceeds collected before August 1, 1993, is for a purpose stated in subsection 1(e) of Chapter 32 of the 1987 Session Laws.
Sec. 6. Section 5 of this act is effective upon ratification. The remaining sections of this act become effective August 1, 1993.
In the General Assembly read three times and ratified this the 24th day of July, 1993.
President Pro Tempore of the Senate
Daniel Blue, Jr.
Speaker of the House of Representatives