GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	3
SENATE BILL 92
 Finance Committee Substitute Adopted 4/16/01
Third Edition Engrossed 4/25/01

Short Title:	Various Local Occupancy Taxes.	()	
Sponsors:	     	
Referred to:	     	
February 7, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE VARIOUS MUNICIPALITIES AND COUNTIES TO LEVY ROOM OCCUPANCY TAXES.

The General Assembly of North Carolina enacts:
PART I. CITY OF GASTONIA.
SECTION 1.1.  Occupancy tax. – (a) Authorization and Scope. – The Gastonia City Council 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 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 1.1.(b)  Administration. – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215.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 section.
SECTION 1.1.(c) Use of Tax Revenue. – The city shall use the net proceeds of the tax collected under this Part for tourism-related capital and capital maintenance expenditures, including but not limited to, improving, leasing, designing, constructing, financing, operating, or acquiring facilities and properties as needed to provide for civic center meeting and convention facilities.
PART II. CITY OF KINGS MOUNTAIN.
SECTION 2.1.  Occupancy tax.  (a) Authorization and Scope. – The Kings Mountain City Council 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 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 2.1.(b)  Administration. – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215.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 section.
SECTION 2.1.(c)  Distribution and Use of Tax Revenue. – Kings Mountain shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Kings Mountain 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 Kings Mountain 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 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.
(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 city or to attract tourists or business travelers to the city. The term includes tourism-related capital expenditures.
SECTION 2.2.  Kings Mountain Tourism Development Authority.  (a) Appointment and Membership. – When the Kings Mountain City Council adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a city 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 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 Kings Mountain shall be the ex officio finance officer of the Authority.
SECTION 2.2.(b)  Duties. – The Authority shall 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 the city, sponsor tourist-related events and activities in the city, and finance tourist-related capital projects in the city.
SECTION 2.2.(c)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Kings Mountain 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 III. CITY OF LINCOLNTON.
SECTION 3.1.  Occupancy tax.  (a) Authorization and Scope. – The Lincolnton City Council 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 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 3.1.(b)  Administration. – A tax levied under this section 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 section.
SECTION 3.1.(c)  Distribution and Use of Tax Revenue. – Lincolnton shall use at least two-thirds of the net proceeds of the occupancy tax to promote travel and tourism in Lincolnton 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 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.
(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 city or to attract tourists or business travelers to the city. The term includes tourism-related capital expenditures.
PART IV. MONROE.
SECTION 4.1.  Monroe occupancy tax.  (a) Authorization and Scope. – The Monroe City Council may levy a room occupancy tax of up to five percent (5%) 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 4.1.(b)  Administration. – A tax levied under this section 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 section.
The tax collector may collect any unpaid taxes levied under this act through the use of attachment and garnishment proceedings as provided in G.S. 105-368 for collection of property taxes. The tax collector has the same enforcement powers concerning the tax authorized by this act as the Secretary of Revenue in enforcing the State sales tax under G.S. 105-164.30.
SECTION 4.1.(c)  Distribution and  Use of Tax Revenue. – The tax collector shall account for the proceeds of a tax levied under this act to the city finance director on a monthly basis.  The city shall use at least five percent (5%) of the net proceeds of the tax to promote tourism and economic development.  The city shall use the remaining net proceeds of the tax for construction, operation, and maintenance of a civic center for Downtown Monroe Development, and for economic development.
PART V. NORTH TOPSAIL BEACH.
SECTION 5.1.  Occupancy tax (a) Authorization and Scope. – The North Topsail Beach City Council 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 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 5.1.(b)  Administration. – A tax levied under this section 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 section.
SECTION 5.1.(c)  Distribution and Use of Tax Revenue. – North Topsail Beach shall spend the net proceeds of the occupancy tax levied for beach renourishment. For purposes of this section, "net proceeds" is the 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.
PART VI. SURF CITY.
SECTION 6.1.  Part IX of Chapter 908 of the 1983 Session Laws, as amended by Chapter 985 of the 1983 Session Laws, as it relates to Surf City only is recodified and rewritten as Section 6.2 of this act.
SECTION 6.2.  Surf City occupancy tax. (a) Authorization and Scope. – The Surf City Town Council 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 town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3) and from the rental of private residences and cottages, whether or not the residence or cottage is rented for less than 15 days.  This tax is in addition to any State or local sales tax.
SECTION 6.2.(b)  Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Surf City Town Council may levy an additional room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of accommodations taxable under subsection (a).  The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section.  The governing body of a town may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
SECTION  6.2.(c)  Administration. – A tax levied under this section 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 section.
The tax collector may collect any unpaid taxes levied under this act through the use of attachment and garnishment proceedings as provided in G.S. 105-368 for collection of property taxes. The tax collector has the same enforcement powers concerning the tax imposed by this act as does the Secretary of Revenue in enforcing the State sales tax under G.S. 105-164.30.
SECTION 6.2.(d)  Distribution and Use of Tax Revenue. – The Town of Surf City may use the proceeds of the tax levied pursuant to subsection (a) of this section only for tourism-related expenditures.  As used in this section, "tourism-related expenditures" includes any of the following expenditures:  criminal justice system, fire protection, public facilities and utilities, health facilities, solid waste and sewage treatment, and the control and repair of waterfront erosion.  The term does not include, however, expenditures for services normally provided by the town on behalf of its citizens unless these services promote tourism and enlarge its economic benefits by enhancing the ability of the town to attract and provide for tourists.
The Town of Surf City may use the proceeds of the tax levied pursuant to subsection (b) of this section only for beach renourishment.
PART VII. TOPSAIL BEACH.
SECTION 7.1.  Part IX of Chapter 908 of the 1983 Session Laws, as amended by Chapter 985 of the 1983 Session Laws, as it relates to Topsail Beach only is recodified and rewritten as Section 7.2 of this act.
SECTION 7.2.  Topsail Beach occupancy tax. (a) Authorization and 
Scope. – The Topsail Beach Town Council 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 town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3) and from the rental of private residences and cottages, whether or not the residence or cottage is rented for less than 15 days.  This tax is in addition to any State or local sales tax.
SECTION 7.2.(b)  Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Topsail Beach Town Council may levy an additional room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of accommodations taxable under subsection (a). The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section.  The governing body of a town may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
SECTION 7.2.(c)  Administration. – A tax levied under this section 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 section.
The tax collector may collect any unpaid taxes levied under this act through the use of attachment and garnishment proceedings as provided in G.S. 105-368 for collection of property taxes. The tax collector has the same enforcement powers concerning the tax imposed by this act as does the Secretary of Revenue in enforcing the State sales tax under G.S. 105-164.30.
SECTION 7.2.(d)  Distribution and Use of Tax Revenue. – The Town of Topsail Beach may use the proceeds of the tax levied pursuant to subsection (a) of this section only for tourism-related expenditures.  As used in this section, "tourism-related expenditures" includes any of the following expenditures:  criminal justice system, fire protection, public facilities and utilities, health facilities, solid waste and sewage treatment, and the control and repair of waterfront erosion.  The term does not include, however, expenditures for services normally provided by the town on behalf of its citizens unless these services promote tourism and enlarge its economic benefits by enhancing the ability of the town to attract and provide for tourists.
The Town of Topsail Beach may use the proceeds of the tax levied pursuant to subsection (b) of this section only for beach renourishment.
PART VIII.  DARE COUNTY.
SECTION 8.  Chapter 449 of the 1985 Session Laws, as amended by Chapter 826 of the 1985 Session Laws and Chapters 177 and 906 of the 1991 Session Laws, is further amended by adding a new section to read:
"Section 3.1. Supplemental Occupancy Tax.  In addition to the taxes authorized by Sections 1 and 3 of this act, the Dare County Board of Commissioners may levy a room occupancy tax of one percent (1%) of the gross receipts derived from the rental of accommodations taxable under Section 1 of this act. The county may not levy a tax under this section unless it also levies the taxes under Section 1 and Section 3 of this act. A tax levied under this section may not become effective before the first day of the second month after the resolution levying the tax is adopted. The levy, collection, administration, and repeal of the tax authorized by this section shall be in accordance with Section 1 of this act. The county shall use the net proceeds of the tax authorized by this section only for shoreline protection activities the board of commissioners considers necessary to protect the public health, safety, and economic well‑being of the county."
PART IX. ROWAN ADMINISTRATIVE CHANGES.
SECTION 9.1.  Section 1 of Chapter 379 of the 1987 Session Laws, as amended by Chapter 882 of the 1991 Session Laws, reads as rewritten:
"Section 1. – Occupancy tax.  (a)	Authorization and scope. – The Rowan 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 similar accommodation furnished by a hotel, motel, inn, 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.

(c)	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. – Rowan County shall apply the net proceeds of the occupancy tax to the purposes provided in this subsection.  The county shall, on a monthly basis, remit the net proceeds of the occupancy tax to the Rowan County Tourism Development Authority.  The Authority shall spend funds remitted to it under this subsection only to promote travel, tourism, and conventions in Rowan County and to sponsor tourist‑oriented events and activities in Rowan County.  The Authority may not spend any of the funds for construction, improvement, or maintenance of real property or for any other capital project.  The Authority shall report  at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the  year in such detail as the board may require.
As used in this subsection, 'net proceeds' means gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer.
"
SECTION 9.2.  Chapter 379 of the 1987 Session Laws, as amended by Chapter 882 of the 1991 Session Laws, is amended by adding a new section to read:
"Section 1.1.	Establishment, Appointment, and Duties of Tourism Authority.
(a)	The board of commissioners shall adopt a resolution establishing and creating the Rowan 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 11 members appointed by the board of commissioners:
(1)	A county commissioner or their designee.
(2)	A member of the Salisbury City Council or their designee.
(3)	Two owners, operators, or representatives of hotels, motels, or other taxable tourist accommodations.
(4)	Two individuals to represent all bona fide Rowan County sites and attractions, to be selected from those sites and attractions.
(5)	One individual to represent the Rowan County Chamber of Commerce, either the chair of the board or the chair's designee.
(6)	Four individuals who have an interest in tourism development and do not own or operate hotels, motels, or other taxable tourist accommodations.
To fill the seat designated for a member of the Salisbury Council, the board of commissioners shall appoint the individual selected by the Salisbury City Council. The term of office of each member of the Authority is two years. Members may serve no more than two consecutive terms. All members of the Authority shall serve without compensation.
(b)	In addition to any other powers and duties of the Authority otherwise conferred by law, the authority may contract with any person, firm, or agency to advise and assist it in the promotion of travel and tourism and to carry out the purposes identified in Section 1 of this act. The Authority may accept contributions from any source to be used for the purposes stated in Section 1 of this act."
SECTION 9.3.  G.S. 153A-155(g) reads as rewritten:
"(g)	This section applies only to Avery, Brunswick, Craven, Currituck, Davie, Granville, Madison, Nash, Person, Randolph, Rowan, Scotland, and Transylvania Counties."
PART X.  TOWN OF WILKESBORO.
SECTION 10.1.  Occupancy tax. – (a)	Authorization and Scope. – The Wilkesboro Board of Town 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 town 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 10.1.(b)	Administration. – A tax levied under this section 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 section.
SECTION 10.1.(c)	Distribution and Use of Tax Revenue. – The Town of Wilkesboro shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Wilkesboro Tourism Development, Convention, and Visitors Bureau.  The Bureau shall use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in Wilkesboro 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 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, including the operation of a visitor's center. The term includes administrative expenses incurred in engaging in the listed activities.
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the Bureau, 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.
SECTION 10.2.  Wilkesboro Tourism Development, Convention, and Visitors Bureau. – (a)	Appointment and Membership. – When the Wilkesboro Board of Town Commissioners adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the Wilkesboro Tourism Development, Convention, and Visitors Bureau, which shall be a public authority under the Local Government Budget and Fiscal Control Act.  The resolution shall provide that the board of commissioners shall appoint members of the Bureau for one‑year terms and shall provide for the filling of vacancies on the Bureau.  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 board of town commissioners shall designate one member of the Bureau as chair and shall determine the compensation, if any, to be paid to members of the Bureau.
The Bureau shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings.  The Finance Officer for the Town of Wilkesboro shall be the ex officio finance officer of the Bureau.
SECTION 10.2.(b)	Duties. – The Bureau shall expend the net proceeds of the tax levied under this act for the purposes provided in Section 9.1 of this act.  The Bureau 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.
SECTION 10.2.(c)	Reports. – The Bureau shall report quarterly and at the close of the fiscal year to the town commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board of commissioners may require.
PART XI.  TOWN OF SELMA.
SECTION 11.1.  Occupancy tax. – (a) Authorization and Scope. – The Town Council of the Town of Selma 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 town 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 11.1.(b)	Administration. – A tax levied under this section 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 section.
SECTION 11.1.(c)	Distribution and Use of Tax Revenue. – The Town of Selma shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Selma 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 Selma 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 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, including the operation of a visitor's center. The term includes administrative expenses incurred in engaging in the listed activities.
(3)	Tourism‑related expenditures. – Expenditures that, in the judgment of the 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.
SECTION 11.2.  Selma Tourism Development Authority. – (a) Appointment and Membership. – When the Town of Selma adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the Selma 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 Selma 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 the Town of Selma shall be the ex officio finance officer of the Authority.
SECTION 11.2.(b)	Duties. – The Authority shall expend the net proceeds of the tax levied under this act for the purposes provided in Section 10.1 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.
SECTION 11.2.(c)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the town council on its receipts and expenditures for the preceding quarter and for the year in such detail as the town council may require.
PART XII.  JOHNSTON COUNTY.
SECTION 12.1.  Chapter 647 of the 1987 Session Laws is amended by adding a new section to read:
"Section 2.1.  Additional Occupancy Tax. – In addition to the tax authorized by Sections 1 and 2 of this act, the Johnston County Board of Commissioners may levy a room occupancy tax of three percent (3%) of the gross receipts derived from the rental of accommodations taxable under Sections 2 and 3 of this act.  The county may not levy a tax under this section unless it also levies the tax under Section 2 of this act.  A tax levied under this section may not become effective before the first day of the second month after the resolution levying the tax is adopted.  The levy, collection, administration, and repeal of the tax authorized by this section shall be in accordance with Sections 1, 4, 5, and 8 of this act.  The county shall use the net proceeds of the tax authorized by this section only for improving, leasing, constructing, financing, operating, or acquiring facilities and properties as needed to provide for a civic center facility. The use of the funds for the financing of a civic center may include the payment of interest or the retiring of principal on debt related to a civic center."
PART  XIII.  AVERASBORO TOWNSHIP IN HARNETT COUNTY.
SECTION 13.1.  Chapter 142 of the 1987 Session Laws is amended by adding a new section to read:
"Section 1.1. Additional Occupancy Tax. – In addition to the tax authorized by Section 1 of this act, the Harnett County Board of Commissioners may levy a room occupancy tax of three percent (3%) of the gross receipts derived from the rental of accommodations taxable under Section 1 of this act.  The county may not levy a tax under this section unless it also levies the tax under Section 1 of this act.  A tax levied under this section may not become effective before the first day of the second month after the resolution levying the tax is adopted.  The levy, collection, administration, and repeal of the tax authorized by this section shall be in accordance with Section 1 of this act.  The county shall, on a quarterly basis, remit the net proceeds of the tax authorized by this section to the Averasboro Township Tourism Development Authority to be used only for improving, leasing, constructing, financing, operating, or acquiring facilities and properties as needed to provide for a civic center facility.  The use of the funds for the financing of a civic center may include the payment of interest or the retiring of principal on debt related to a civic center.  If the Authority has not used the funds remitted to it under this section for a civic center facility within three years after the date the tax is levied, then the Authority must use the funds for the operation and maintenance of the General William C. Lee Memorial Commission, Inc."
PART XIV.  CITY OF ROCKINGHAM.
SECTION 14.1.  Occupancy tax. (a) Authorization and Scope. – The Rockingham City Council 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 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 14.1.(b)  Administration. – A tax levied under this section 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 section.
The tax collector may collect any unpaid taxes levied under this act through the use of attachment and garnishment proceedings as provided in G.S. 105-368 for collection of property taxes. The tax collector has the same enforcement powers concerning the tax authorized by this act as the Secretary of Revenue in enforcing the State sales tax under G.S. 105-164.30.
SECTION 14.1.(c)  Distribution and Use of Tax Revenue. – The tax collector shall account for the proceeds of a tax levied under this part to the city finance director on a monthly basis. The city shall use the net proceeds for travel and tourism purposes.
PART XV. CITY UNIFORM PROVISIONS.
SECTION 15.  City administrative provisions. – 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 Gastonia, Goldsboro, Greensboro, Kings Mountain, Lincolnton, Lumberton, Monroe, Mount Airy, Rockingham, Shelby, and Statesville, to the Towns of Banner Elk, Mooresville, North Topsail Beach,  Selma, St. Pauls, Surf City, Topsail Beach, and Wilkesboro, and to the municipalities in Brunswick County."
PART XVI. EFFECTIVE DATE.
SECTION 16.  This act is effective when it becomes law.