Makes changes to the reporting and remittance requirements for sales tax on accommodations and local occupancy taxes as follows:
Amends GS 105-164.4(a)(3) regarding the timing of notice for remittance of tax on gross receipts for accommodations rentals to provide that the time frame for a facilitator to provide notice to the retailer of tax due on the sales price shall be as agreed upon by the retailer and the facilitator (current law requires notice to be provided by the facilitator to the retailer within three days of the retailer notifying the facilitator when a rental marketed by the facilitator is completed). A facilitator that elects to remit the tax directly to the Department of Revenue instead of to the retailer is not subject to retailer notice requirements. Effective October 1, 2011.
Amends Article 5 of GS Chapter 105 to add a new GS 105-164.16A authorizing small facilitators to elect to pay tax on gross receipts for accommodations directly to the Department of Revenue instead of to the accommodation rental retailer. Defines a small facilitator as one whose cumulative gross receipts for the preceding calendar year do not exceed $5 million, applies to payment of sales tax and local occupancy tax on rental accommodations marketed by the facilitator, and sets out administrative procedures for making the election and remitting payment of sales and local occupancy taxes. Effective October 1, 2011.
Amends GS 160A-215 and GS 153A-155 to make the effective date of a resolution adopted by the governing board of a city or county levying, repealing, or reducing a local occupancy tax either January 1 or July 1 and not earlier than 45 days after the resolution is adopted; requires the governing board to immediately deliver its resolution to the Secretary of Revenue; and changes the name of the tax authorized under this section from room occupancy tax to local occupancy tax. Effective October 1, 2011.
Effective January 1, 2013, amends Subchapter VIII of GS Chapter 105 governing collection and remittance of local government sales and use tax (renamed “state-administered local taxes”) by creating a new Article 49 to require that local occupancy taxes be paid directly to the Secretary of Revenue at the same time and in the same manner as sales tax on rental accommodations, after which the Secretary would then remit the net proceeds of the local occupancy tax to the governing board of the taxing district in which the tax was paid; makes technical conforming changes to GS 105-164.16A, GS 105-228.90(b)(7), GS 160A-215, and GS 153A-155. Requires the Secretary to develop a local occupancy tax database.
Status: Ref To Com On Finance (Senate Action) (Apr 20 2011)
Bill S 734 (2011-2012)Summary date: Apr 20 2011 - View Summary