North Carolina SB 132: Swannanoa Valley TDA.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 132

Short Title: Swannanoa Valley TDA. (Local)
Sponsors: Senators Daniel, Mayfield, and Moffitt (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 24, 2025
*S132-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE THE CREATION OF THE SWANNANOA VALLEY TOURISM 2
DEVELOPMENT AUTHORITY. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Part VI of Chapter 908 of the 1983 Session Laws, as amended by 5
Section 1 of Chapter 942 of the 1985 Session Laws, S.L. 2021-162, Section 60(a) of S.L. 6
2013-414, Section 8 of S.L. 2015-128, and Section 3.1 of S.L. 2022-40, reads as rewritten: 7
"PART VI. BUNCOMBE OCCUPANCY TAX. 8
"Sec. 17. Authorization and Scope. – (a) The Board of Commissioners of Buncombe County 9
may levy a room occupancy and tourism development tax of up to two percent (2%) of the gross 10
receipts derived from the rental of accommodations within the county that are subject to sales tax 11
imposed by the State under G.S. 105-164.4(a)(3). 12
"Sec. 18. Repealed. 13
"Sec. 19. Administration of Tax. – A tax levied under this act shall be levied, administered, 14
collected, and repealed as provided in G.S. 153A-155. The penalties provided in G.S. 153A-155 15
apply to a tax levied under this act. 16
"Sec. 20. Repealed. 17
"Sec. 21. Disposition of Taxes Collected. – (a) Buncombe County shall shall, on a quarterly 18
basis, remit the net proceeds of the occupancy tax collected from the areas collectively consisting 19
of, and legally denoted as, the Buncombe County Townships of (i) Broad River (28), (ii) Black 20
Mountain (25), and (iii) Swannanoa (21), and hereinafter collectively referred to as the "district," 21
to the Swannanoa Valley Tourism Development Authority to be used for purposes consistent 22
with Section 24 of this act. Buncombe County shall remit the remainder of the net proceeds of 23
the occupancy tax collected to the county Buncombe County Tourism Development Authority 24
in Buncombe County. to be used for purposes consistent with this section. "Net proceeds" means 25
gross proceeds less the cost to the county of administering and collecting the tax, not to exceed 26
five percent (5%) of the gross proceeds collected each year. 27
(b) The Buncombe County Tourism Development Authority may expend any funds 28
remitted to it pursuant to subsection (a) of this section only as follows: 29
(1) Two-thirds of the funds shall be used only (i) to further the development of 30
travel, tourism, meetings and events in the county through marketing, 31
advertising, sales, and promotion and (ii) for the administrative expenses of 32
the Authority, not to exceed twenty percent (20%) of the net proceeds for the 33
applicable fiscal year of the Authority. For purposes of this provision, 34
administrative expenses shall include expenses of the Authority for salaries, 35
benefits, operations, and facilities. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 132-First Edition
(2) The remainder shall be split evenly between the following funds created by 1
the Authority, with no portion of the remainder being used for operational 2
expenses: 3
a. The Tourism Product Development Fund. The Authority shall use 4
monies in the Fund to provide financial assistance for major tourism 5
projects in order to increase patronage of lodging facilities in, and 6
further economic development in, Buncombe County. 7
b. The Legacy Investment From Tourism Fund. The Authority shall use 8
monies in the Fund to provide financial assistance for tourism-related 9
projects that are designed to (i) increase patronage of lodging facilities, 10
meeting facilities, and convention facilities by attracting tourists, 11
business travelers, or both and (ii) benefit the community at large in 12
Buncombe County. 13
(c) The Buncombe County Tourism Development Authority shall administer and spend 14
the funds in the Tourism Product Development Fund as follows: 15
(1) The Authority shall create a Product Development Committee to review and 16
evaluate proposals from applicants for tourism capital projects, including 17
capital maintenance. No proceeds may be used for operational expenses. The 18
Product Development Committee shall make recommendations to the 19
Authority regarding use and disposition of funds derived from the Tourism 20
Product Development Fund. A for-profit entity is not eligible to receive funds 21
or loans from the Tourism Product Development Fund. Only upon 22
recommendation of the Product Development Committee, and upon a vote of 23
three-fourths of the current voting members of the Authority to expend such 24
funds, the Authority may award funds to qualified projects in the form of 25
outright grants of money and may guarantee loans and participate in pledges 26
of debt service for these projects; provided, however, that no loan guarantee 27
may exceed the amount committed from the Fund for the project. Projects 2