GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
SESSION LAW 2007-23
SENATE BILL 336
AN ACT TO AUTHORIZE Swain County TO LEVY An additional ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX and to make other administrative changes.
The General Assembly of North Carolina enacts:
SECTION 1. Chapter 923 of the 1985 Session Laws reads as rewritten:
"Section 1. Occupancy Tax. (a) Authorization and
Scope. - The Swain 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(3).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.organizations
when furnished in furtherance of their nonprofit purpose.
(a1) Authorization of Additional Tax. - In addition to the tax authorized by subsection (a) of this section, the Swain County Board of Commissioners may levy an additional room occupancy tax of up to one percent (1%) 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 shall be in accordance with the provisions of this section. Swain County may not levy a tax under this subsection unless it also levies the maximum tax authorized under subsection (a) of this section.
(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.
(c) Administration. -
The county shall administer a tax levied under this act. A tax levied under
this act is due and payable to the county finance officer in monthly
installments on or before the 15th 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 15th 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 and sales upon which
the tax is levied.
A return filed with the county finance officer under this
act 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 act shall 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 for each additional month or fraction thereof until
the tax is paid.
Any person who willfully attempts in any manner to evade a
tax imposed 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.
(e) Distribution and Use
of Tax Revenue. - Swain County shall, on a quarterly basis, remit the
net proceeds of the occupancy tax to the Swain Tourism Development Authority.
The Authority may spend funds remitted to it under this subsection only to
further the development of travel, tourism, and conventions in the county
through state, national, and international advertising and promotion. No more
than twenty- five percent (25%) of the funds remitted to the Authority may be
used for salaries, wages, and administrative expenses.shall use at least
two-thirds of the funds remitted to it under this subsection to promote travel
and tourism in Swain County and shall use the remainder for tourism-related
expenditures.
The following definitions apply in this subsection:
(1) As used in
this subsection, "net proceeds" means grossNet 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
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
proceeds 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 Swain County Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in the 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 act 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 act may be repealed by a resolution adopted by the Swain
County Board of Commissioners. Repeal of a tax levied under this act 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 act does not affect a liability for a tax that
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. Tourism Development Authority. - (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
and shall be composed of the following five members:
(1) Two tourist-oriented
business members appointed by the Swain County Chamber of Commerce; and
(2) Three
tourist-oriented business members appointed by the Swain County Board of
Commissioners.
The Chamber shall designate one of its initial appointees to
serve a two-year term and one to serve a three-year term. The board of
commissioners shall designate one of its initial appointees to serve a one-year
term, one to serve a two- year term, and one to serve a three-year term.
Thereafter, all members shall serve three-year terms. Vacancies shall be filled
by the appointing authority of the member who created the vacancy. Members
appointed to fill vacancies shall serve the remainder of the unexpired term for
which they are appointed to fill.
The members of the Authority shall elect from its
membership a chairman.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 the tax in
the county, and at least one-half of the members shall be individuals who are
currently active in the promotion of travel and tourism in the county. 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 chairman chair
and shall adopt rules of procedure to govern its meetings. The finance
officer of Swain County shall serve be the ex officio as the finance
officer of the Authority.
(b) Duties. - The
Authority shall promote travel, tourism, and conventions in Swain County. expend
the net proceeds of the tax levied under this act for the purposes provided in
Section 1 of this act. The Authority shall promote travel, tourism, and
conventions in Swain County, sponsor tourist-related events and activities in
the county, and finance tourist-related capital projects in the county.
(c) Report. Reports.
- The Authority shall report quarterly and at the close of the fiscal year
to the board of county commissioners on its receipts and disbursements expenditures
for the preceding quarter and for the year in such detail as the board may
require.
"Sec. 3. This act is effective upon ratification."
SECTION 2. This act is effective when it becomes law. The Board of Commissioners has 30 days from the date the act becomes effective to ensure that the membership of the Authority is in compliance with this act.
In the General Assembly read three times and ratified this the 25th day of April, 2007.
s/ Beverly E. Perdue
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives