GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	3
HOUSE BILL 685
 Committee Substitute Favorable 7/18/01 
Senate Finance Committee Substitute Adopted 8/7/01 

Short Title:	Occupancy Tax for Certain Counties.	()	
Sponsors:	     	
Referred to:	     	
March 19, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE ANSON, MONTGOMERY, AND STANLY COUNTIES TO LEVY A ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX, TO AUTHORIZE BEECH MOUNTAIN TO INCREASE ITS OCCUPANCY TAX, TO MAKE ADMINISTRATIVE CHANGES TO BEECH MOUNTAIN'S OCCUPANCY TAX, TO REPEAL THE AVERY COUNTY OCCUPANCY TAX, AND TO AUTHORIZE A TAXING DISTRICT IN AVERY COUNTY TO LEVY A ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX.

The General Assembly of North Carolina enacts:
PART I. COUNTY ADMINISTRATIVE PROVISIONS
SECTION 1.  G.S. 153A‑155 reads as rewritten:
"§ 153A‑155.  Uniform provisions for room occupancy taxes.
(a)	Scope. – This section applies only to counties the General Assembly has authorized to levy room occupancy taxes.
(b)	Levy. – A room occupancy tax may be levied only by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto. A room occupancy tax 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.
(c)	Collection. – Every operator of a business subject to a room occupancy tax shall, on and after the effective date of the levy of the tax, collect the tax. The 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 taxing 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 taxing 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 a room occupancy tax may deduct from the amount remitted to the taxing county a discount equal to the discount the State allows the operator for State sales and use tax.
(d)	Administration. – The taxing county shall administer a room occupancy tax it levies. A room occupancy tax 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 taxing county. The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied. A room occupancy tax return filed with the county finance officer is not a public record and may not be disclosed except in accordance with G.S. 153A‑148.1 or G.S. 160A‑208.1.
(e)	Penalties. – A person, firm, corporation, or association who fails or refuses to file a room occupancy tax return or pay a room occupancy tax as required by law 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 governing board of the taxing county 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.
(f)	Repeal or Reduction. – A room occupancy tax levied by a county may be repealed or reduced by a resolution adopted by the governing body of the county. Repeal or reduction of a room occupancy tax 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 resolution was adopted. Repeal or reduction of a room occupancy tax does not affect a liability for a tax that was attached before the effective date of the repeal or reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal or reduction.
(g)	This section applies only to the Avery County Room Tax District and to Anson,  Brunswick, Craven, Currituck, Davie, Granville, Madison, Montgomery, Nash, Person, Randolph, Scotland, Stanly, and Transylvania Counties."
PART II. ANSON COUNTY
SECTION 2.  Anson Occupancy Tax.  (a)  Authorization and Scope.  The Anson County Board of Commissioners 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 county 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.  This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
SECTION 2.(b)  Administration.  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.
SECTION 2.(c)  Distribution and Use of Tax Revenue.  Anson County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Anson 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 Anson County 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 county 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 these activities.
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in a county by attracting tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
SECTION 3.  Anson Tourism Development Authority.  (a)  Appointment and Membership.  When the board of commissioners adopts a resolution levying a room occupancy tax under this Part, 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' 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 county, and at least three‑fourths of the members must 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 chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for Anson County shall be the ex officio finance officer of the Authority.
SECTION 3.(b)  Duties.  The Authority shall expend the net proceeds of the tax levied under this Part for the purposes provided in this Part.  The Authority shall promote travel, tourism, and conventions in the county, sponsor tourist‑related events and activities in the county, and finance tourist‑related capital projects in the county.
SECTION 3.(c)  Reports.  The Authority shall report quarterly and at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
PART III. MONTGOMERY COUNTY
SECTION 4.  Montgomery Occupancy Tax.  (a) Authorization and Scope.  The Montgomery County Board of Commissioners 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 county 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.  This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
SECTION 4.(b)  Administration.  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.
SECTION 4.(c)  Distribution and Use of Tax Revenue.  Montgomery County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Montgomery 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 Montgomery County 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 county 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 these activities.
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in a county by attracting tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
SECTION 5.  Montgomery Tourism Development Authority.  (a) Appointment and Membership.  When the board of commissioners adopts a resolution levying a room occupancy tax under this Part, 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' 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 county, and at least three‑fourths of the members must 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 chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for Montgomery County shall be the ex officio finance officer of the Authority.
SECTION 5.(b)  Duties.  The Authority shall expend the net proceeds of the tax levied under this Part for the purposes provided in this Part.  The Authority shall promote travel, tourism, and conventions in the county, sponsor tourist‑related events and activities in the county, and finance tourist‑related capital projects in the county.
SECTION 5.(c)  Reports.  The Authority shall report quarterly and at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
PART IV. STANLY COUNTY
SECTION 6.  Stanly Occupancy Tax. (a) Authorization and Scope. The Stanly County Board of Commissioners may levy a room occupancy tax of up to six percent (6%) 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 county 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. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
SECTION 6.(b)  Administration. 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.
SECTION 6.(c)  Distribution and Use of Tax Revenue. Stanly County shall, on a quarterly basis, remit to the City of Albemarle five‑sixths of the gross proceeds of the occupancy tax derived from accommodations in the City of Albemarle.  The City of Albemarle shall remit to the Stanly County Tourism Development Authority forty percent (40%) of the proceeds it receives under this subsection.  The City of Albemarle shall use the remainder of the proceeds only for tourism‑related expenditures. 
Stanly County shall remit to each municipality in the county other than the City of Albemarle the net proceeds of the occupancy tax derived from accommodations in that municipality. Each of these municipalities shall remit to the Stanly County Tourism Development Authority each year the greater of one dollar ($1.00) per capita of the municipality's population or one‑half of the amount remitted to the municipality under this subsection. The municipalities shall use the remaining funds received under this subsection only for tourism‑related expenditures in the county.
The county shall remit to the Stanly County Tourism Development Authority the greater of twenty‑five thousand dollars ($25,000) a year or one‑half of the remaining net proceeds of the occupancy tax.
The Authority shall use the funds remitted to it under this subsection only to promote travel and tourism in Stanly County.
Stanly County shall use the remainder of the net proceeds only for tourism‑related expenditures in the county.
SECTION 6.(d)  Definitions. The following definitions apply in this section:
(1)	Net proceeds. – Gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer, not to exceed an amount equal to 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 these activities.
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the entity making the expenditure, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in a county by attracting tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
SECTION 6.(e)  Effect on Local Act. Chapter 915 of the 1991 Session Laws is repealed effective on the effective date of a tax levied under this Part by Stanly County.
SECTION 7. Stanly County Tourism Development Authority. As used in this Part, the term "Stanly County Tourism Development Authority" means a nonprofit corporation established for the purpose of promoting travel, tourism, and conventions in the county, sponsoring tourist‑related events and activities in the county, and financing tourist‑related capital projects in the county. The county and municipalities shall remit funds to the Authority under this Part only pursuant to a contract that requires the Authority to expend the funds to promote travel and tourism in Stanly County. The contract must also require the Authority to report quarterly and at the close of the fiscal year to the board of commissioners and annually to each municipality in the county on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.
PART V.  BEECH MOUNTAIN
SECTION 8.  Chapter 376 of the 1987 Session Laws reads as rewritten:
"AN ACT TO AUTHORIZE THE TOWN OF BEECH MOUNTAIN TO LEVY A ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX.
"Section 1. Occupancy Tax. – The Town Council of Beech Mountain may levy a room occupancy and tourism development  tax of three percent (3%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation in the Town of Beech Mountain 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 or room occupancy tax. The tax does not apply to  sleeping rooms or lodgings furnished by charitable, educational, or religious institutions or  nonprofit organizations.
"Sec. 1.1. Additional Tax. – In addition to the tax authorized by Section 1 of this act, the Town Council of Beech Mountain may levy a room occupancy and tourism development tax of three percent (3%) of the gross receipts derived from the rental of accommodations taxable under that section. The levy, collection, administration, use, and repeal of the tax authorized by this section shall be in accordance with this act. Beech Mountain may not levy a tax under this section unless it also levies a tax under Section 1 of this act.
"Sec. 2. Administration of Tax. – (a) A tax levied under this act 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 act. 	
(c)	All persons, firms, corporations, and associations who rent either their own dwelling or dwellings or rooms for other persons are required to submit to the town a list of all rental properties. This list shall include the owner's name, current address, and location of rental property. The list shall be submitted semi‑annually on or before November 30 and May 30.
Failure to file this listing shall subject the person, firm, corporation or association to a civil penalty.
	"Sec. 5.  Distribution and Use of Tax Revenue. – The Town of Beech Mountain  shall, on a quarterly basis, remit one‑third of the net proceeds collected from accommodations within Avery County to the Avery County Tourism Development Authority. The Avery County Tourism Development Authority shall use at least two‑thirds of the proceeds distributed to it to promote travel and tourism and shall use the remainder for tourism‑related expenditures. The Avery County Tourism Development Authority may not spend any of the proceeds distributed to it under this section for tourism‑related expenditures except in accordance with a budget approved by the board of county commissioners. 
The town shall remit the remaining net proceeds of the occupancy tax on a quarterly basis to the Beech Mountain Tourism Development Authority. For the first seven years that funds are remitted to the Beech Mountain Tourism Development Authority under this section, the Authority shall use at least one‑third of the funds remitted to it under this section to promote travel and tourism in Beech Mountain and shall use the remainder for tourism‑related expenditures. For funds remitted to it under this section thereafter, the Beech Mountain Tourism Development Authority shall use at least two‑thirds of the funds remitted to it under this section to promote travel and tourism in Beech Mountain and shall use the remainder for tourism‑related expenditures.
The following definitions apply in this section:
(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.
"Sec. 5.1. Beech Mountain Tourism Development Authority. – When the Beech Mountain Town Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a Beech Mountain 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 three‑fourths 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 Beech Mountain shall be the ex officio finance officer of the Authority.
"Sec. 5.2. Duties. – The Authority shall expend the net proceeds of the tax distributed to it 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.
"Sec. 5.3. Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Beech Mountain Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
"Sec. 7. This act is effective upon ratification."
PART VI.  CITY ADMINISTRATIVE PROVISIONS
SECTION 9.  G.S. 160A-215 reads as rewritten:  
"§ 160A-215.  Uniform provisions for room occupancy taxes.
(a)	Scope. – This section applies only to municipalities the General Assembly has authorized to levy room occupancy taxes. For the purpose of this section, the term "city" means a municipality.
(b)	Levy. – A room occupancy tax may be levied only by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto. A room occupancy tax 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.
(c)	Collection. – Every operator of a business subject to a room occupancy tax shall, on and after the effective date of the levy of the tax, collect the tax. The 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 taxing city. 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 taxing city shall design, print, and furnish to all appropriate businesses and persons in the city the necessary forms for filing returns and instructions to ensure the full collection of the tax. An operator of a business who collects a room occupancy tax may deduct from the amount remitted to the taxing city a discount equal to the discount the State allows the operator for State sales and use tax.
(d)	Administration. – The taxing city shall administer a room occupancy tax it levies. A room occupancy tax is due and payable to the city finance officer in monthly installments on or before the fifteenth 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 fifteenth day of each month, prepare and render a return on a form prescribed by the taxing city. The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied. A room occupancy tax return filed with the city finance officer is not a public record and may not be disclosed except in accordance with G.S. 153A‑148.1 or G.S. 160A‑208.1.
(e)	Penalties. – A person, firm, corporation, or association who fails or refuses to file a room occupancy tax return or pay a room occupancy tax as required by law 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 governing board of the taxing city 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.
(f)	Repeal or Reduction. – A room occupancy tax levied by a city may be repealed or reduced by a resolution adopted by the governing body of the city. Repeal or reduction of a room occupancy tax 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 resolution was adopted. Repeal or reduction of a room occupancy tax does not affect a liability for a tax that was attached before the effective date of the repeal or reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal or reduction.
(g)	This section applies only to the Cities of Goldsboro, Greensboro, Lumberton, Mount Airy, Shelby, and Statesville, to the Towns of Banner Elk, Beech Mountain, Mooresville, and St. Pauls, and to the municipalities in Brunswick County."
PART VII.  AVERY COUNTY
SECTION 10.  Sections 1 and 1.1 of Chapter 472 of the 1993 Session Laws, as amended by Sections 4 and 5 of S.L. 1997‑410, are repealed.
SECTION 11.(a)  District Created. – The Avery County Room Tax District is created as a taxing district.  Its jurisdiction consists of that part of Avery County that is not located within the town limits of the Town of Beech Mountain.  The Avery County Room Tax District is a body politic and corporate and has the power to carry out the provisions of this section.  The Board of Commissioners of Avery County shall serve, ex officio, as the governing body of the district, and the officers of the board of commissioners shall serve as the officers of the governing body of the district.  A simple majority of the governing body constitutes a quorum, and approval by a majority of those present is sufficient to determine any matter before the governing body, if a quorum is present.
SECTION 11.(b)  Room Tax Authorization and Scope. – The governing body of the Avery County Room Tax District may levy a room occupancy tax of up to two percent (2%) 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 district 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 or room occupancy tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations. The combined district and town occupancy tax rate payable on any accommodations furnished within the Avery County Room Tax District may not exceed six percent (6%).
SECTION 11.(c)  Administration. – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155 to the same extent as if the Avery County Room Tax District were a county. The penalties provided in G.S. 153A‑155 apply to a tax levied under this section.
SECTION 11.(d)  Distribution and Use of Tax Revenue. – The Avery County Room Tax District shall, on a quarterly basis, distribute the net proceeds of the occupancy tax to the Avery Tourism Development Authority created pursuant to this Part. The Tourism Development Authority shall use at least two‑thirds of the proceeds distributed to it under this section to promote travel and tourism within the district and shall use the remainder for tourism‑related expenditures.  The Tourism Development Authority may not spend any of the proceeds distributed to it under this section for tourism‑related expenditures except in accordance with a budget approved by the board of county commissioners as provided in this Part.
SECTION 11.(e)  Definitions. – The following definitions apply in this Part:
(1)	Net proceeds. – Gross proceeds less the cost to the district of administering and collecting the tax, as determined by the finance 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 the district or to attract tourists or business travelers to the district. The term includes expenditures to construct, maintain, operate, or market a convention center and other expenditures that, in the judgment of the entity making the expenditure, will facilitate and support tourism.
SECTION 12.  Avery Tourism Development Authority. – (a) Appointment and membership. – The board of commissioners of Avery County shall adopt a resolution creating the Avery Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The Authority shall have 11 voting members appointed by the board of commissioners as provided in this section. At least one‑third of the members must be individuals who are affiliated with businesses that collect the tax in the county, and at least three‑fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the county. The members of the Authority shall be:
(1)	One individual recommended by the Avery County Lodging Association.
(2)	One individual recommended by the Avery/Banner Elk Chamber of Commerce.
(3)	Six individuals, one recommended by each of the following councils:
a.	Banner Elk Town Council.
b.	Beech Mountain Town Council.
c.	Crossnore Town Council.
d.	Elk Park Town Council.
e.	Newland Town Council.
f.	Sugar Mountain Village Council.
(4)	One individual who resides in the Green Valley or Frank Communities.
(5)	One individual who resides in the Fall Creek or Old Beech Mountain Communities.
(6)	One individual who resides anywhere in the county.
The resolution shall provide for four‑year terms of office for the voting members, except that the initial terms of six members, in the discretion of the board of commissioners, shall be set at three years to provide for staggered terms.  
In addition to the voting members, any town or community in Avery County that is not authorized to select a voting member may appoint a nonvoting member to the Authority. These nonvoting members have all the rights of voting members, except the right to vote.
The board of commissioners shall designate one voting member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority. When a vacancy occurs in any seat due to expiration of the term or otherwise, the entity responsible for recommending the appointee to that seat must recommend a replacement appointee within 30 days after the vacancy occurs. The board of commissioners must, at its next meeting, appoint a replacement appointee for the vacant seat.
The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for Avery County shall be the ex officio finance officer of the Authority and shall serve as an ex officio, nonvoting member of the Authority.
The Authority is a public body under the open meetings law, Article 33C of Chapter 143 of the General Statutes. The Authority must meet in the boardroom of the Avery County Board of Commissioners unless another public meeting space is prescribed by the board of commissioners.
SECTION 12.(b)  Duties. – The Authority shall expend the net proceeds of the Avery County Room Tax District tax distributed to it under this Part for the purposes provided in this Part. The Authority shall expend the Beech Mountain occupancy tax distributed to it under Chapter 376 of the 1987 Session Laws, as amended, for the purposes provided in that act. The Authority shall promote travel and tourism in the Town of Beech Mountain and in the Avery County Room Tax District and make tourism-related expenditures, as defined in this act. Proceeds of the Beech Mountain occupancy tax may be used only for the direct benefit of the Town of Beech Mountain.  Proceeds of the Avery County Room Tax District tax may be used only for the direct benefit of the Avery County Room Tax District.
SECTION 12.(c)  Annual Budget. – On or before May 1 of each year, the Authority shall submit to the board of commissioners a proposed budget and work plan for expenditure of the estimated tax revenues for the  following fiscal period. If the proposed budget includes tourism‑related expenditures, they must be itemized separately from the expenditures to promote travel and tourism. If the proposed  tourism‑related expenditures are not approved, the Authority shall submit revised proposed tourism‑related expenditures for approval. The Authority may not spend any of the proceeds distributed to it for tourism‑related expenditures that have not been approved by the board of county commissioners.  Expenditures to promote travel and tourism are not subject to prior approval by the board of county commissioners.
PART VIII. EFFECTIVE DATE
SECTION 13.  This act is effective when it becomes law.