North Carolina SB 953: Cherokee County Occupancy Tax Modifications.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 953

Short Title: Cherokee County Occupancy Tax Modifications. (Local)
Sponsors: Senator Corbin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S953-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE CHEROKEE COUNTY OCCUPANCY TAX. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Chapter 1055 of the 1983 Session Laws, as amended by Section 21(e) 4
of S.L. 2007-527 and Section 1 of S.L. 2008-33, reads as rewritten: 5
"Section 1. Occupancy Tax. – 6
(a) Authorization and Scope. – The Cherokee County Board of Commissioners may levy 7
a room occupancy and tourism development tax of three percent (3%) of the gross receipts 8
derived from the rental of any room, lodging, or similar accommodation furnished by any hotel, 9
motel, inn, tourist camp, or other similar place within the county that is subject to sales tax 10
imposed by the State under G.S. 105-164.4(a)(3). The occupancy tax is in addition to any State 11
or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, 12
educational, or religious organizations. 13
(b) Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) 14
of this section, the Cherokee County Board of Commissioners may levy an additional room 15
occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of 16
accommodations taxable under subsection (a) of this section. The levy, collection, 17
administration, and repeal of the tax authorized by this subsection shall be in accordance with 18
the provisions of this act. Cherokee County may not levy a tax under this subsection unless it 19
also levies the tax authorized under subsection (a) of this section. 20
"Sec. 3. Administration of Tax. – A tax levied under this act shall be levied, collected, 21
administered, and repealed as provided in G.S. 153A-155. The penalties provided in 22
G.S. 153A-155 apply to a tax levied under this act. 23
"Sec. 5. Distribution and Use of Tax Revenue. – Cherokee County shall, on a quarterly basis, 24
remit the net proceeds of the room occupancy tax to the Cherokee County Tourism Development 25
Authority. The Authority shall use at least two-thirds of the funds remitted to it under this act to 26
promote travel and tourism in Cherokee County and shall use the remainder for tourism-related 27
expenditures. 28
The following definitions apply in this section: 29
(1) Net proceeds. – Gross proceeds less the cost to the county of administering 30
and collecting the tax, as determined by the finance officer, not to exceed three 31
percent (3%) of the first five hundred thousand dollars ($500,000) of gross 32
proceeds collected each year and one percent (1%) of the remaining gross 33
receipts collected each year. 34
(2) Promote travel and tourism. – To advertise or market an area or activity, 35
publish and distribute pamphlets and other materials, conduct market research, 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 953-First Edition
or engage in similar promotional activities that attract tourists or business 1
travelers to the area. The term includes administrative expenses incurred in 2
engaging in the listed activities. 3
(3) Tourism-related expenditures. – Expenditures that, in the judgment of the 4
Tourism Development Authority, are designed to increase the use of lodging 5
facilities, meeting facilities, or convention facilities in a county or to attract 6
tourists or business travelers to the county. The term includes tourism-related 7
capital expenditures. 8
"Sec. 6. Cherokee County Tourism Development Authority. – 9
(a) Appointment and Membership. – When the Cherokee County Board of 10
Commissioners adopts a resolution levying a room occupancy tax under this act, it shall also 11
adopt a resolution creating a County Tourism Development Authority, which shall be a public 12
authority under the Local Government Budget and Fiscal Control Act. The resolution shall 13
provide for the membership of the Authority, including the members' terms of office, in 14
accordance with this section, and for the filling of vacancies on the Authority. At least one-third 15
of the members must be individuals who are affiliated with businesses that collect the tax in the 16
county, and at least one-half of the members must be individuals who are currently active in the 17
promotion of travel and tourism in the county. Members of the Authority shall serve for terms of 18
three years, and no member shall serve more than two consecutive full terms unless a minimum 19
of 12 months has elapsed since the expiration of the member's second full term. The board of 20
commissioners shall designate one member of the Authority as chair and shall determine the 21
compensation, if any, to be paid to members of the Authority. The Authority shall meet at the 22
call of the chair and shall adopt rules of procedure to go