North Carolina HB 544: Madison County Occupancy Tax.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005

SESSION LAW 2005-118
HOUSE BILL 544

AN ACT TO AMEND THE MADISON COUNTY OCCUPANCY AND TOURISM
DEVELOPMENT TAX.

The General Assembly of North Carolina enacts:

SECTION 1. Section 1 of Chapter 102 of the 1997 Session Laws reads as
rewritten:
"Section 1. Occupancy tax. (a) Referendum. The Madison County Board of
Commissioners may direct the county board of elections to conduct an advisory
referendum on the question of whether a room occupancy tax of up to three percent
(3%) will be levied in accordance with this act. The election shall be held on a date
jointly agreed upon by the two boards and shall be held in accordance with the
procedures of G.S. 163-287.
The form of the question to be presented on a ballot for a special election concerning
the levy of the tax authorized by this act shall be:
[ ] FOR [ ] AGAINST
Tax on rental of lodging at hotels, motels, and similar businesses, at a maximum rate of
three percent (3%), to be used to promote travel and tourism and for tourism-related
expenditures.
(b) Authorization and scope. If a majority of those voting in a referendum held
pursuant to this act vote for the levy of the tax, the Madison County Board of
Commissioners may by resolution levy a room occupancy tax as provided in this act. In
addition, if the county has not held a referendum, or if five years have passed since the
tax was defeated at a referendum, theThe Madison County Board of Commissioners
may by resolution, after not less than 10 days' public notice and after a public hearing
held pursuant thereto, levy a room occupancy tax as provided in this act. The tax
authorized by this act may be levied at a rate of up to three percent (3%) and shall apply
toof 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 or to a
business that offers to rent fewer than five units.
(b1) In addition to the tax authorized by subsection (b) of this section, the Madison
County Board of Commissioners may levy an additional room occupancy tax of up to
two percent (2%) of the gross receipts derived from the rental of accommodations
taxable under subsection (b) 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. Madison County may not levy a tax under this subsection unless it also
levies the tax authorized under subsection (b) of this section.
(c) Administration. Except as otherwise provided in this section, aA 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.
(d) Distribution and use of tax revenue. Madison County shall, on a quarterly
basis, remit the net proceeds of the occupancy tax to the Madison County Tourism

Page 2 Session Law 2005-118 SL2005-0118
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 Madison County
and shall use the remainder for tourism-related expenditures. The administrative
expenses of the Authority may not exceed fifteen percent (15%) of the funds remitted to
it under this subsection.
The following definitions apply in this subsection:
(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 five percent 5% of the gross proceeds. three
percent (3%) of the first five hundred thousand dollars ($500,000) of
the 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 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 or meeting
facility, a visitors' center, or a coliseum and other expenditures that, in
the judgment of the Authority, will facilitate and promote tourism."
SECTION 2. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 28
th day of
June, 2005.

s/ Marc Basnight
President