OMNIBUS OCCUPANCY TAXES. (NEW)

View NCGA Bill Details2017-2018 Session
Senate Bill 552 (Public) Filed Thursday, March 30, 2017
AN ACT TO MAKE VARIOUS OCCUPANCY TAX CHANGES AFFECTING THE CITIES OF SANFORD, SALUDA, JACKSONVILLE, HICKORY AND CONOVER AND AFFECTING THE COUNTIES OF HARNETT, SAMPSON, YADKIN, AND ROWAN.
Intro. by Tillman, Cook.

Status: Ch. SL 2017-202 (Senate Action) (Aug 3 2017)

SOG comments (2):

Change long and short titles

House committee substitute to 1st edition changed long and short titles.  Long title was AN ACT TO MODIFY THE ADMINISTRATION OF THE SALES TAX WITH RESPECT TO BOATS AND JETS. Short title was MODIFY SALES TAX REMITTANCE: BOAT/JET REPAIRS.

Long Title Change

House amendment #1 to the 2nd edition makes changes to the long title. The original title is as follows:

AN ACT TO MAKE VARIOUS OCCUPANCY TAX CHANGES AFFECTING THE CITIES OF SANFORD, SALUDA, AND JACKSONVILLE AND AFFECTING THE COUNTIES OF HARNETT, SAMPSON, YADKIN, AND ROWAN.

S 552/S.L. 2017-202

Bill Summaries:

  • Summary date: Aug 11 2017 - More information

    AN ACT TO MAKE VARIOUS OCCUPANCY TAX CHANGES AFFECTING THE CITIES OF SANFORD, SALUDA, JACKSONVILLE, HICKORY AND CONOVER AND AFFECTING THE COUNTIES OF HARNETT, SAMPSON, YADKIN, AND ROWAN. Enacted August 3, 2017. Effective August 3, 2017, except as otherwise provided.


  • Summary date: Jun 29 2017 - More information

    Conference report makes the following changes to the 2nd edition.

    Amends Section 1.1, which authorizes the Sanford City Council to levy a room occupancy tax. Provides that the tax is derived from the gross receipts of the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the city (was, derived from the rental of an accommodation within the city).

    Amends Section 1.1(c), which provides for the distribution and use of the tax levied under Section 1.1. Directs the Sanford Tourism Development Authority to use two-thirds of the funds remitted to it under this subsection to promote travel and tourism in Sanford, and to use the remaining one-third for the operation, maintenance, promotion, and renovation of the Dennis A. Wicker Civic Center. Funds for the Center that are not spent or obligated by the close of a fiscal year may be used by the Authority for the promotion of travel and tourism in Sanford.

    Makes technical changes.


  • Summary date: Jun 27 2017 - More information

    House amendment #1 amends the 2nd edition.

    Adds new Part IV. Amends Sections 1 and 3 of SL 2009-169, directing the Hickory-Conover Tourism Development Authority to use the proceeds from the occupancy taxes levied by the Cities of Hickory and Conover to be used as follows: prior to and through December 31, 2029 (currently, December 31, 2019), two-thirds of the funds are to be used to provide for a convention center facility with the remainder to be used to promote travel and tourism in the area; and after December 31, 2029 (currently, December 31, 2019), two-thirds of the funds are to be used to promote travel and tourism in the area with the remainder to be used for tourism-related expenditures.

    Makes conforming changes to the long title.


  • Summary date: Jun 26 2017 - More information

    House committee substitute makes the following changes to the 1st edition.

    Deletes all of the previous provisions. Changes the act's long and short titles, and now provides the following.

    Part I. Sanford Occupancy Tax

    Authorizes the Sanford City Council to levy a room occupancy tax of up to 3% of the gross receipts derived from the rental of an accomodation within the city subject to sales tax under GS 105-164.4(a)(3). Provides that the tax must be levied, administered, collected, and repealed as provided in GS 160A-215 (uniform provisions for room occupancy taxes). Requires the Sanford Tourism Development Authority (TDA) to use the occupancy tax proceeds to promote travel and tourism in the city as specified. Provides for the appointment, membership, and duties of the TDA. Mandates that at least one‑third of the members of the TDA must be affiliated with businesses that collect the tax in the city and at least one‑half must be currently active in the city’s travel and tourism promotion. Requires the TDA to make reports quarterly and at the close of the fiscal year to the Sanford City Council on its receipts and expenditures for the preceding quarter and for the year. 

    Part II. Saluda Occupancy Tax

    Creates a new tax district for the part of the city of Saluda that is in Polk County, to be called Saluda District D. Saluda District D is a body politic and corporate. Provides for the governance of that district by the Saluda Board of Commissioners and the officers of Polk County.

    Authorizes the Saluda District D governing body to levy a room occupancy tax of up to 3%. Provides that the tax must be levied, administered, collected, and repealed as provided in GS 160A-215 (uniform provisions for room occupancy taxes). Requires the Saluda District D Tourism Development Authority (TDA) to use at least two‑thirds of the occupancy tax proceeds to promote travel and tourism in the district and the remainder for tourism–related expenditures. Mandates that at least one‑third of the members of the TDA must be affiliated with businesses that collect the tax in the district and at least one‑half must be currently active in the district's travel and tourism promotion. 

    Part III. Jacksonville Occupancy Tax

    Amends SL 2009-429 to direct the Jacksonville Tourism Development Authority (Authority) to use at least two-thirds of the funds remitted to it under the occupancy tax for tourism-related expenditures, and to use the remainder to promote travel and tourism in Jacksonville. Effective July 1, 2017, and expires July 1, 2027.

    Amends SL 2009-429, as amended by Section 1, to direct the Authority to use at least two-thirds of the funds remitted to it under the occupancy tax to promote travel and tourism, and to use the remainder for tourism-related expenditures in Jacksonville. Effective July 1, 2027.

    Part V. Harnett County Occupancy Tax

    Creates Harnett County District H as a taxing district whose jurisdiction is all parts of Harnett County excluding the Averasboro Township.  The Harnett County Board of Commissioners serves as the governing body of the district.  The governing body is authorized to levy a 6% room occupancy tax within the district by resolution under the procedures applicable to county room occupancy tax levies provided for in GS 153A-155.  Net proceeds of the tax revenues must be remitted to the Harnett County District H Tourism Development Authority, which must use at least 2/3 of the revenues to promote travel and tourism within the district and the remainder for tourism-related expenditures within the district.  Defines the terms net proceeds, promote travel and tourism, and tourism-related expenditures.  Requires the governing body of the district to adopt a resolution creating the Harnett County District H Tourism Development Authority when it adopts a resolution levying the room occupancy tax.  The authority shall be a public authority under the Local Government Budget and Fiscal Control Act.  The membership of the authority board, including terms, shall be determined in the resolution provided that at least one-third of the members be affiliated with businesses that collect the tax and at least one-half of the members be currently active in promoting travel and tourism within the district.  The Harnett County Finance Officer is the ex officio finance officer of the district.  The authority shall spend the net proceeds of the occupancy tax as required by the act and report quarterly and annually to the Harnett County Board of Commissioners on receipts and expenditures. 

    Part VI. Sampson County Occupancy Tax

    Amends SL 2007-63, Section 1, to add a new subsection (a1) authorizing the Sampson County Board of Commissioners to levy an additional room occupancy tax of up to 3%. Specifies that the levy, collection, administration, and repeal of the tax must be in accordance with the provisions of Section 1 of SL 2007-63. Prohibits Sampson County from levying this tax unless it also levies the tax previously authorized under SL 2007-63, Section 1(a), which levies a room occupancy tax of 3%. Makes a conforming change.

    Part VII. Yadkin Occupancy Tax

    Amends SL 2007-340 to re-define the borders of Yadkin County Taxing District Y as that part of Yadkin County located outside of the Town of Jonesville and the Town of Yadkinville (currently the part of Yadkin County located outside of incorporated areas within the county).

    Directs the governing body of Yadkin County District Y and the Yadkin County Board of Commissioners to adopt any resolutions or modify any adopted resolutions to carry out the provisions of this act.

    Part VIII. Rowan Occupancy Tax

    Repeals Part II of SL 2009-428 (Salisbury Occupancy Tax).

    Amends SL 1987-379, Section 1, as amended, to authorize the Rowan County Board of Commissioners to levy an additional room occupancy tax of up to 3% of the gross receipts derived from the rental of accommodations taxable under the occupancy tax provisions in subsection (a). Provides that both the existing and additional tax must be levied, administered, collected, and repealed as provided in the session law. Prohibits Rowan County from levying an additional room occupancy tax unless it also levies the occupancy tax authorized under subsection (a). Requires the Rowan County Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism (primarily marketing activity) in the county and the remainder for other tourism–related expenditures (may include tourism-related capital expenditures). Requires the County to remit the tax proceeds to the TDA quarterly (was, monthly). Amends appointment of membership on the Rowan County TDA, specifying which seats may be appointed by the Rowan County Board of Commissioners, and which may be appointed by the Salisbury City Council. Provides that the Authority meets at the call of the chair, and must adopt rules of procedure to govern its meetings. Makes the Finance Officer for Rowan County the ex officio finance officer of the Rowan County TDA. Directs the Rowan County TDA to spend the proceeds of the tax under Section 1 of the session law in accordance with Section 1. Directs the Rowan County TDA to report quarterly and at the close of each fiscal year to the Rowan County Board of Commissioners on its receipts and expenditures, as specified by the Rowan County Board of Commissioners.

    Part IX. Administrative Provisions

    Makes conforming changes to GS 160A-215(g) and GS 153A-155(g). Makes technical changes to GS 153A-155(g).


  • Summary date: Mar 30 2017 - More information

    Amends GS 105-164.27A(a3) to authorize purchasers of boats, aircraft, and jet engines to elect to have the seller collect and remit the tax due on behalf of the purchaser. In that case, an invoice given to the purchaser bearing the proper amount of tax on a retail transaction extinguishes the purchaser's liability for the tax on the transaction. Where the seller does not separately state installation charges that are part of the sales price of tangible personal property or digital property for a boat, aircraft, or jet engine, tax is due on the total purchase price.

    Amends GS 105-164.13 to exempt from retail sales and use tax the amount of repair, maintenance, and installation services for a boat, aircraft, or jet engine, for which the purchaser elects for the seller to collect and remit the tax due under GS 105-164.27A(a3).

    Effective July 1, 2017, and applies to sales made on or after that date.


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