GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 715
     

 
Short Title:	Redistribute Mecklenburg Meals Tax.	()	
Sponsors:	Representatives Gulley;  Saunders and Earle (Primary Sponsors).	
Referred to:	Local Government I.	
March 21, 2001

A BILL TO BE ENTITLED
AN ACT TO DISTRIBUTE THE PROCEEDS OF THE MECKLENBURG PREPARED FOOD TAX AMONG ALL MECKLENBURG COUNTY MUNICIPALITIES.

The General Assembly of North Carolina enacts:
SECTION 1.  Sections 9(a)(2) and 9(a)(3) of Chapter 821 of the 1989 Session Laws read as rewritten:
"Sec. 9. (a) Distribution and Use of Proceeds. The local administrative authority, acting on its own behalf or as agent for each taxing entity, shall distribute the proceeds of the taxes levied in this Part as provided in this subsection. The distribution shall be made by the 20th day of each month following the month in which the tax is collected.
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(2)	Distribution to Charlotte for Convention Center Facilities. After deducting the amount provided above, the local administrative authority shall transfer to the City of Charlotte an amount equal to three percent (3%) of the gross occupancy receipts plus that part of the net proceeds of the prepared food and beverage tax not otherwise required to be distributed under subdivision (3) of this subsection. The net proceeds transferred to the City of Charlotte pursuant to this subdivision shall be applied in accordance with the following priorities. No application of any net proceeds to any class of the priorities set forth below in this subdivision shall be made until, with respect to each preceding class of priorities, either all payments for the current fiscal year have been provided for in full or no such payments are required for the current fiscal year.
a.	To provide for when due payments for the current fiscal year with respect to any financing for new convention center facilities or for the expansion of existing convention center facilities, which may include off‑street parking for use in conjunction with the facilities.
b.	To pay costs incurred in an aggregate amount not greater than one million five hundred thousand dollars ($1,500,000) in each fiscal year for marketing and promoting new or expanded convention center facilities.
c.	To pay other costs of acquiring, constructing, maintaining, operating, marketing, and promoting new or expanded convention center facilities.
(3)	Distribution to Other Municipalities. After deducting the amounts provided above, the local administrative authority shall determine the amount of the remaining occupancy tax net proceeds and the prepared food and beverage tax net proceeds that were collected from taxable establishments located in each municipality, other than the City of Charlotte. The local administrative authority shall then distribute to each municipality, other than the City of Charlotte, an amount equal to one hundred twenty percent (120%) of the amount of the remaining occupancy tax net proceeds collected in that  municipality and seventy‑five percent (75%) of the prepared food and beverage tax net proceeds that were collected in that municipality. These funds may be expended only for acquiring, constructing, financing, maintaining, operating, marketing, and promoting convention centers, civic centers, performing arts centers, coliseums, auditoriums, and museums, for off‑street parking for use in conjunction with these facilities, and for tourism and tourism‑related programs and activities including art and cultural programs, events, and festivals.
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SECTION 2.  This act becomes effective July 1, 2001, and applies to taxes collected on or after that date.