Title: H350 [Ratified]
Category: Introduced Bill 2005

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005

HOUSE BILL 350
RATIFIED BILL

AN ACT to authorize martin county to levy an additional three percent room occupancy and tourism development tax and to make other administrative changes.

The General Assembly of North Carolina enacts:

SECTION 1.  S.L. 1991‑80 reads as rewritten:
"Section 1. Occupancy Tax. – (a)  Authorization and Scope. – The Martin 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, 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, by summer camps, or by businesses that offer to rent no more than five units.
(a1)	Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the Martin County Board of Commissioners 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) of this section. The levy, collection, administration, and repeal of the tax authorized by this subsection must be in accordance with the provisions of this section. Martin County may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
	
(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 – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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. – Martin County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Martin County 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 Martin County and shall use the remainder for tourism‑related expenditures.
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 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 county or to attract tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
		
"Sec. 2. Martin County Tourism Development Authority. – (a)  Appointment and Membership. –  When the board of commissioners adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the Martin County Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide that the Authority shall be composed of the following 12 members:
(1)	A Martin County Commissioner appointed by the Martin County Board of Commissioners.
(2)	Two owners or operators of restaurants, motels, hotels, or other taxable accommodations in Martin County that have at least five units, nominated by representatives of this industry, both to be appointed by the Martin County Board of Commissioners.
(3)	One member selected by the Martin County Chamber of Commerce to be appointed by the Martin County Board of Commissioners.
(4)	One member appointed by the Martin County Board of Commissioners selected from the Martin County Economic Development Commission.
(5)	Five members, one appointed by each member of the Martin County Board of Commissioners.
(6)	One member appointed by the Martin County Board of Commissioners selected from the Martin County Historical Society.
(7)	One member appointed by the Martin County Board of Commissioners selected from the Robersonville Downtown Merchants Association.
The appointees shall be made from throughout the County by the Martin County Board of Commissioners. At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the county and at least one‑half of the members must be individuals currently active in the promotion of travel and tourism in the county. All members of the Authority shall serve without compensation. Vacancies shall be filled in the same manner as original appointments. Members appointed to fill vacancies shall serve for the remainder of the unexpired term. The Authority shall elect each year from its membership a Chair. No member may serve as Chair more than two one‑year terms in succession. The Authority shall meet at the call of the Chair or of any three members and shall adopt rules of procedure to govern its meetings. The Finance Officer for Martin County shall be the ex officio finance officer of the Authority.
(b)	Terms of office. – Members of the Authority shall serve three‑year terms except that the Martin County Commissioner appointed pursuant to subdivision (a)(1) shall be appointed yearly by the chairman of the board of commissioners and initial appointees shall serve the following terms:
(1)	The Martin County Commissioner appointed pursuant to subdivision (a)(1): one year.
(2)	One representative of the motel and restaurant industry appointed pursuant to subdivision (a)(2): one year.
(3)	One representative of the motel and restaurant industry appointed pursuant to subdivision (a)(2): three years.
(4)	The representative of the Martin County Chamber of Commerce appointed pursuant to subdivision (a)(3): three years.
(5)	The representative of the Martin County Economic Development Commission appointed pursuant to subdivision (a)(4): two years.
(6)	Three members appointed by Martin County Commissioners pursuant to subdivision (a)(5): one year.
(7)	Two representatives appointed by Martin County Commissioners pursuant to subdivision (a)(5): three years.
(8)	The representative of the Martin County Historical Society appointed pursuant to subdivision (a)(6): two years.
(9)	The representative of the Robersonville Downtown Merchants Association appointed pursuant to subdivision (a)(7): three years.
(c)	Limitation on terms. – No member of the Authority shall serve more than two consecutive three‑year terms.
(d)	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 county, sponsor tourist‑related events and activities in the county, and finance tourist‑related capital projects in the county. The board of county commissioners may from time to time determine an appropriate percentage not to exceed five percent (5%) of net proceeds that may be expended for administrative services.
(e)	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.
	
"Sec. 3. This act is effective upon ratification."
SECTION 2.  G.S. 153A‑155(g) reads as rewritten:
"(g)	This section applies only to Alleghany, Anson, Brunswick, Buncombe, Cabarrus, Camden, Carteret, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Franklin, Granville, Halifax, Madison, Martin, Montgomery, Nash, New Hanover, Pasquotank, Pender, Person, Randolph, Richmond, Rockingham, Rowan, Scotland, Stanly, Transylvania, Tyrrell, Vance, and Washington Counties, to Watauga County District U, and to the Township of Averasboro in Harnett County."
SECTION 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 19^th day of July, 2006.

	_____________________________________
		 Beverly E. Perdue
	 President of the Senate

	_____________________________________
		 James B. Black
	 Speaker of the House of Representatives

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