Part I.

Amends Section 6.2 of the Town Charter for the Town of Garner (SL 1977-333) so that the town council (was, board of aldermen) can authorize the town manager to also settle (1) eminent domain cases filed by the town when the amount involved does not exceed the amount budgeted for property or easement acquisition for the approved capital improvement program and (2) claims made by the town or debts owed to the town when the amount involved does not exceed $10,000. Increases the cap on the referral to the town manager for settlement for personal injury or property damages from $100 to $10,000. Requires all of these settlements to be reported to the town council in a timely manner. Directs that such settlements constitute a complete release of the town from all damages sustained by a person involved in the settlement arising out of the same claim.

Part II.

Makes the following changes to SL 1991-54, as amended, (Wake County’s room occupancy and prepared food and beverage taxes). Adds new defined term promote travel and tourism. Deletes retailer and makes technical change to prepared food and beverage. Modifies undesignated proceeds. Makes organizational and clarifying changes. Now requires Wake County and Raleigh to amend an interlocal agreement after the levy of a tax under that agreement to include at least three other municipalities as parties to the agreement. Removes reference to the effective date of the act in describing the exemption from Wake County’s prepared food and beverage tax for retail sales tax exempt from taxation under GS 105-164.13. Specifies that the prepared food and beverage tax applies to all prepared grocery food so that it is no longer limited to prepared food in the grocery deli or other similar department. Removes outdated language.

Removes language projecting the annual net proceeds from the prepared food and beverage tax and the accompanying distributions required based on that projection. Modifies the amount that the county can deduct from the gross proceeds of the prepared food and beverage tax from 3% of all gross proceeds to 3% of the first $500,000 of gross proceeds collected each year and 1% of all remaining gross receipts collected each year after that. Sets out a schedule for distribution of the remaining funds to include distribution to the Greater Raleigh Convention and Visitors Bureau and county municipalities in the amounts described to promote travel and tourism or to fund the listed activities. Directs municipalities to maintain these funds in a special nonreverting fund as specified. Specifies that money in those funds that remain unspent and unencumbered after a period of five years revert to Wake County and be placed in the Small Tourism Projects Grant Fund (Fund). Provides for quarterly reports to the Wake County Board of Commissioners on the municipalities receipts and expenditures, including those described.

Removes provisions requiring the county to transfer specified amounts to Raleigh, along with provisions governing the city’s use of those proceeds. Modifies the distribution to Wake County so that the county now retains a sum equal to: (1) the amount of prepared food and beverage tax collected in the unincorporated areas of the county, (2) the shares of prepared food and beverage tax levied by Wake County and attributable to the Town of Angier and the City of Durham, (3) the amount deducted from the Town of Cary's distribution, and (4) the amount of funds forfeited by a municipality, if any, for failure to be expended within five years of receipt. Provides for quarterly reports by the Board of Commissioners on its receipts and expenditures, to be posted on the county website. Expands the county’s permitted uses of the funds received to include the Fund, promoting travel and tourism, planning related to the Raleigh Civic Center Complex or similar facilities for sports, culture, and arts, and for small tourism project grants with priority given to cities other than Raleigh and Cary. Removes provisions requiring unspent funds to be held in reserves and the listed future revenue allocations of the prepared food and beverage tax.

Makes technical change to GS 153A-154.1 (uniform provisions for local meals taxes) to modify the statutory cross-reference for the definition of prepared food and beverages and alcoholic beverages so that it mirrors those definitions in GS 105-164.4L (definitions pertaining to sales and use taxes).

Effective July 1, 2026, and applies to the distribution of proceeds of the prepared food and beverage tax on or after that date. Within 90 days of this Part becoming law, requires Wake County and the City of Raleigh to amend the interlocal agreement in accordance Section 5(b)(2) of SL 1991-594, as amended, including by the act.