Bill Summary for S 902 (2023-2024)

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Summary date: 

May 7 2024

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 902 (Local) Filed Tuesday, May 7, 2024
AN ACT TO MODIFY THE DURHAM COUNTY OCCUPANCY TAX.
Intro. by Woodard.

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Bill summary

Section 1

Amends the provisions of Section 9 of Part III of SL 2001-480, as amended, pertaining to Durham County’s Occupancy Tax, as follows. 

Starting fiscal year 2024-25 and continuing for each fiscal year until April 1, 2034, reallocates the uses of the net occupancy tax proceeds. Starting in fiscal year 2025-26, reduces the percentage of the net occupancy tax proceeds allocated to Durham County and the City of Durham for general use, so that the allocation is phased out by fiscal year 2027. Starting in fiscal year 2025-26, increases the percentage of the net occupancy tax proceeds allocated to the Durham Convention and Visitors Bureau (Bureau) so that it reaches 5% of the total net occupancy tax proceeds by fiscal year 2027. Adds to the requirements for the use of the funds allocated for improvements to the Museum of Life and Science. Defines promote travel and tourism; promote travel, tourism, and conventions; and tourism related expenditures. Makes organizational, conforming, and technical changes. Effective July 1, 2024, and applies to the distribution and use of occupancy tax proceeds on or after that date.

Section 2

Effective April 1, 2034, consolidates Parts II and III of SL 2001-480, as amended by specified provisions and by this act, and rewrites those provisions as follows. Authorizes the Durham Board of Commissioners to levy a room occupancy tax of up to 6%. Requires the Bureau to use two‑thirds of the occupancy tax proceeds to promote travel and tourism in the city and the remainder for tourism–related expenditures in the county. Mandates that at least one‑third of the members of the Bureau must be affiliated with businesses that collect the tax in the county and at least one‑half must be currently active in the county’s travel and tourism promotion. Makes conforming changes. Specifies that the provisions of the prior acts consolidated and rewritten by the act that authorize the levy of and provide for the administration of the tax by the Bureau will continue without interruption so that all rights and liabilities that have accrued before the effective date of the act are preserved and may be enforced.