GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	1
SENATE BILL 636
     

 
Short Title:	Charlotte Entertainment Tax.	()	
Sponsors:	Senator Clodfelter.	
Referred to:	Finance.	
March 22, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE CITY OF CHARLOTTE TO LEVY A GROSS RECEIPTS TAX ON CERTAIN ENTERTAINMENTS OFFERED IN CITY‑OWNED FACILITIES.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑37.1 reads as rewritten:
"§ 105‑37.1.  Dances, athletic events, shows, exhibitions, and other entertainments.
(a)	Scope. – A privilege tax is imposed on the gross receipts of a person who is engaged in any of the following:
(1)	Giving, offering, or managing a dance or an athletic contest for which an admission fee in excess of fifty cents (50¢) is charged.
(2)	Giving, offering, or managing a form of amusement or entertainment that is not taxed by another provision of this Article and for which an admission fee is charged.
(3)	Exhibiting a performance, show, or exhibition, such as a circus or dog show, that is not taxed by another provision of this Article.
(b)	Rate and Payment. – The rate of the privilege tax is three percent (3%) of the gross receipts from the activities described in subsection (a) of this section. The tax is due when a return is due. A return is due by the 10th day after the end of each month and covers the gross receipts received during the previous month.
(c)	Advance Report. – A person who owns or controls a performance, show, or exhibition subject to the tax imposed by this section and who plans to bring the performance to this State from outside the State must file a statement with the Secretary that lists the dates, times, and places of the performance, show, or exhibition. The statement must be filed no less than five days before the first performance, show, or exhibition in this State.
(d)	Local License Taxes. – Cities may levy a license tax on a person taxed under subdivision (a)(1) or (a)(2) of this section; however, the tax may not exceed twenty‑five dollars ($25.00). Cities may levy a license tax on a person taxed under subdivision (a)(3) of this section; however, the tax may not exceed twenty‑five dollars ($25.00) for each day or part of a day the performance, show, or exhibition is given at each location.
Counties may not levy a license tax on a person taxed under subdivision (a)(1) or (a)(2) of this section. Counties may levy a license tax on a person taxed under subdivision (a)(3) to the same extent as a city.
(e)	City Gross Receipts Tax. – A city may by ordinance levy a privilege tax of three percent (3%) on the gross receipts from entertainments that are taxable under subsection (a) of this section and take place in a facility owned by the city. To the extent the classifications are consistent with the requirements of the North Carolina Constitution and the United States Constitution, the city may classify the scope of the tax with respect to types of entertainments and the types of facilities in which they are offered. The provisions of G.S. 160A‑215(b), (e), and (f) apply to a tax levied under this subsection as if it were a room occupancy tax.
The tax is due when a return is due. A return is due by the 10th day after the end of each month and covers the gross receipts received during the previous month. A person who owns or controls a performance, show, or exhibition subject to a tax levied under this subsection and who plans to bring the performance to a taxing city from outside the city must file a statement with the city finance director that lists the dates, times, and places of the performance, show, or exhibition. The statement must be filed no less than five days before the first performance, show, or exhibition in the taxing city.
A city may use the proceeds of a tax levied under this subsection only for the following purposes:
(1)	Acquiring, constructing, financing, maintaining, operating, marketing, and promoting convention centers, civic centers, performing arts centers, coliseums (including arenas and stadiums), auditoriums, and museums.
(2)	Off‑street parking for use in conjunction with one or more facilities described in subdivision (1) of this subsection.
(3)	Tourism and tourism‑related programs and activities, including art and cultural programs, events, and festivals."
SECTION 2.  This act applies to the City of Charlotte only.
SECTION 3.  This act is effective when it becomes law.