GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	2
SENATE BILL 652
Finance Committee Substitute Adopted 8/7/01 

Short Title:	Avery Occupancy Tax.	()	
Sponsors:	     	
Referred to:	     	
March 22, 2001

A BILL TO BE ENTITLED
AN ACT RELATING TO OCCUPANCY TAXES IN AVERY COUNTY. 

The General Assembly of North Carolina enacts:
TABLE OF CONTENTS
PART 1. REDUCE AVERY COUNTY OCCUPANCY TAX
PART 2. INCREASE BEECH MOUNTAIN OCCUPANCY TAX
PART 3. INCREASE BANNER ELK OCCUPANCY TAX
PART 4. SUGAR MOUNTAIN OCCUPANCY TAX
PART 5. AUTHORIZE OTHER AVERY COUNTY TOWNS TO LEVY
PART 6. UNIFORM ADMINISTRATIVE PROVISIONS
PART 7. EFFECT ON OTHER LAW
PART 8. EFFECTIVE DATES
PART 1. REDUCE AVERY COUNTY OCCUPANCY TAX
SECTION 1.  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, read as rewritten:
"Section 1. Avery County Occupancy tax.
(a)	Authorization and Scope.
The Avery County Board of Commissioners 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 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. The combined county and town occupancy tax rate payable on any accommodations furnished within Avery County may not exceed six percent (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A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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.
(e)	Distribution and Use of Tax Revenue.
Avery County shall, on a quarterly basis, distribute the net proceeds of the occupancy tax to the Avery Tourism Development Authority created pursuant to this act. The 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 Tourism Development Authority may not spend any of the proceeds distributed toit under this section for tourism‑related expenditures except in accordance with a budget approved by the board of county commissioners as provided in this act.
(f)	Definitions.
The following definitions apply in this  act:
(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 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. 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.
"Sec. 1.1. Avery Tourism Development Authority. 					
(a1)	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.
(b)	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 and tourism in the county and make tourism‑related expenditures, as defined in  this act. 
(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 under  this act  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.
(d)	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 2. INCREASE BEECH MOUNTAIN OCCUPANCY TAX
SECTION 2.  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 up to four percent (4%) 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.The tax does not apply to  sleeping rooms or lodgings furnished by charitable, educational, or religious institutions or  nonprofit organizations.
"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 the net proceeds of the occupancy tax to the Beech Mountain Tourism Development Authority. For the first seven years that funds are remitted to the 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 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 town 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 city 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 levied 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 city council may require.
"Sec. 7. This act is effective upon ratification."
PART 3. INCREASE BANNER ELK OCCUPANCY TAX
SECTION 3.  Sections 1 through 7 of Chapter 318 of the 1989 Session Laws, as amended by Chapter 428 of the 1993 Session Laws and by S.L. 2000‑103, read as rewritten:
"Section 1. Occupancy Tax. – The Town Council of Banner Elk may levy a room occupancy and tourism development  tax of up to four percent (4%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation in the Town of Banner Elk 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. The tax does not apply to any  sleeping rooms or lodging furnished by charitable, educational, or religious institutions or by nonprofit organizations.
"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. 
(b)	Repealed by S.L. 2000‑103. (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 rented properties. This list shall include the owner's name and current address and the location of the 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 of fifty dollars ($50.00).
"Sec. 3. Repealed by S.L. 2000‑103. "Sec. 4. Repealed by S.L. 2000‑103. "Sec. 5. Distribution and Use of Tax Revenue. – The Town Council shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Banner Elk Tourism Development Authority. Effective for taxes collected on or after October 1, 2000, the Authority shall use at least one‑third of the funds remitted to it under this section to promote travel and tourism in Banner Elk and shall use the remainder for tourism‑related expenditures. Effective for taxes collected on or after October 1, 2010, the Authority shall use at least two‑thirds of the funds remitted to it under this section to promote travel and tourism in Banner Elk 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 or sponsor 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, recreational facilities, and business establishments in the town or to attract tourists or business travelers to the town. The term includes tourism‑related capital expenditures and expenditures required to make the downtown tourist area and nearby green areas more accessible, attractive, and usable to pedestrian tourists, in accordance with the master plan approved by the Town Council.
"Sec. 6. Repealed by S.L. 2000‑103.
"Sec. 7. Banner Elk Tourism Development Authority. – (a)	Appointment and membership. – The Town of Banner Elk shall adopt a resolution creating a town Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The Authority shall be composed of five members who shall serve for staggered three‑year terms. The members shall be appointed by the mayor and approved by the Town Council. Two of the members must be an owner or manager of a Banner Elk hotel, motel, or bed and breakfast and one of the other members must be a representative for Lees‑McRae College. The remaining two members must be individuals who are currently active in the promotion of travel and tourism in the town. Vacancies shall be filled in the same manner as the original appointments, and members appointed to fill vacancies shall serve for the remainder of the unexpired term. The Banner Elk 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 Banner Elk shall be the ex officio, nonvoting finance officer of the Authority.
(b)	Duties. – The Authority shall expend the net proceeds of the tax levied under this act for the purposes provided in Section 5 of 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.
(c)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Banner Elk Town Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require."
PART 4. SUGAR MOUNTAIN OCCUPANCY TAX
SECTION 4.(a)  Authorization and Scope. – The Village Council of Sugar Mountain may levy a room occupancy tax of up to four percent (4%) 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 village 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 must 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 section.
SECTION 4.(c)  Distribution and Use of Tax Revenue. – Sugar Mountain shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Sugar Mountain Tourism Development Authority.  For the first seven years that funds are remitted to the 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 Sugar Mountain and shall use the remainder for tourism‑related expenditures.  For funds remitted to it under this section thereafter, the Authority shall use at least two‑thirds of the funds remitted to it under this section to promote travel and tourism in Sugar Mountain and shall use the remainder for tourism‑related expenditures.  
SECTION 4.(d)  Definitions. – The following definitions apply in this subsection:
(1)	Net proceeds. – Gross proceeds less the cost to the village 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 the area or to attract tourists or business travelers to the area. The term includes tourism‑related capital expenditures.
SECTION 5.  Sugar Mountain Tourism Development Authority. – (a) Appointment and Membership. – When the Village Council of Sugar Mountain adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a Sugar 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 city, and at least three‑fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the village.  The village council shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to the 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 Sugar Mountain Finance Officer 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 act for the purposes provided in this act.  The Authority shall promote travel, tourism, and conventions in the area, sponsor tourist‑related events and activities in the area, and finance tourist‑related capital projects in the area.
SECTION 5.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the village council on its receipts and expenditures for the preceding quarter and for the year in such detail as the village council may require.
PART 5. AUTHORIZE OTHER AVERY TOWNS TO LEVY
SECTION 6.(a)  Authorization and Scope. – This section applies only to all other cities in Avery County that are not otherwise authorized to levy a room occupancy tax. The governing body of a city may levy a room occupancy tax of up to four percent (4%) 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 city 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 must 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 section.
SECTION 6.(c)  Distribution and Use of Tax Revenue. – The taxing city shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the taxing city's Tourism Development Authority.  The Authority shall use at least two‑thirds of the funds remitted to it under this section to promote travel and tourism in the taxing city and shall use the remainder for tourism‑related expenditures. 
SECTION 6.(d)  Definitions. – The following definitions apply in this section:
(1)	City. – Defined in G.S. 153A‑1.
(2)	Net proceeds. – Gross proceeds less the cost to the city 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.
(3)	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.
(4)	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 city or to attract tourists or business travelers to the city. The term includes tourism‑related capital expenditures.
SECTION 7.  Tourism Development Authority. – (a) Appointment and Membership. – When the city council of a taxing city adopts a resolution levying a room occupancy tax under this Part, it shall also adopt a resolution creating a 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 city, and at least three‑fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the city.  The city council shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to the 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 the taxing city shall be the ex officio finance officer of the Authority. 
SECTION 7.(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 city, sponsor tourist‑related events and activities in the city, and finance tourist‑related capital projects in the city.
SECTION 7.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the taxing city's city council on its receipts and expenditures for the preceding quarter and for the year in such detail as the city council may require.
PART 6. UNIFORM ADMINISTRATIVE PROVISIONS
SECTION 8.  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 Mooresville and St. Pauls, and to the municipalities in Avery and Brunswick  Counties."
part 7.  effect on other law
SECTION 9.  Part XIII (Beech Mountain Administrative Provisions) and Part XIV (Avery County) of Senate Bill 92, 2001 General Assembly, are repealed.  If Part XIII (Beech Mountain Administrative Provisions) and Part XIV (Avery County) of Senate Bill 92, 2001 General Assembly, become law after this act becomes law, then effective on the date that Senate Bill 92 becomes law, Part XIII (Beech Mountain Administrative Provisions) and Part XIV (Avery County) of Senate Bill 92, 2001 General Assembly, are repealed.    
PART 8. EFFECTIVE DATES
SECTION 10.   Sections 2 and 3 of this act become effective the first day of the third month after this act becomes law.  The remainder of this act is effective when it becomes law.  The existing Avery Tourism Development Authority created under Section 1.1(a) of Chapter 472 of the 1993 Session Laws, as amended by Sections 4 and 5 of S.L. 1997‑410, is dissolved effective upon the appointment of the members of the new Avery Tourism Development Authority created under Section 1.1(a1) of Chapter 472 of the 1993 Session Laws, as amended by Sections 4 and 5 of S.L. 1997‑410 and by this act.  Upon dissolution of the existing Avery Tourism Development Authority, created under Section 1.1(a) of Chapter 472 of the 1993 Session Laws, as amended by Sections 4 and 5 of S.L. 1997‑410, all of its assets and obligations are transferred to the new Avery Tourism Development Authority created under Section 1.1(a1) of Chapter 472 of the 1993 Session Laws, as amended by Sections 4 and 5 of S.L. 1997‑410 and by this act.