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

Amends the act's short and long titles.

Amends Section 2 of SL 2007-340 to change the jurisdiction of the Yadkin County District Y to that part of Yadkin County that is located outside of the Town of Jonesville (was, located outside of incorporated areas within the county).

Requires the governing body of Yadkin County Districy Y and the Yadkin County Board of Commissioners to adopt any resolutions or modify any adopted resolutions to carry out the act.

Repeals Section 7 and 8 of SL 2007-340. Section 7 included provisions giving the Board of Commissioners for the Town of Yadkinville authority to levy a room occupancy tax of up to 6%. Section 8 concerned the adoption of a resolution creating the Yadkinville Tourism Development Authority.

Amends GS 160A-215 to remove Yadkinville from the scope of the statute, which concerns uniform provisions for room occupancy taxes.

Amends Section 1.1 of SL 2009-429 to require the Jacksonville Tourism Development Authority to use at least two-thirds of the funds remitted to it for tourism-related expenditures and use the remaineder to promote travel and tourism in Jacksonville (was, use at least two-thirds of the funds remitted to it to promote travel and tourism in Jacksonville and use the remainder for tourism-related expenditures). Adds that of the funds used for tourism-related expenditures, one-half of those funds must be used for the construction of a sports complex by the City. Effective when the act becomes law and expires on July 1, 2026. Effective July 1, 2026, amends the same provision to now require the Jacksonville Tourism Development Authority to use at least two-thirds of the funds remitted to it to promote travel and tourism and use the remainder for tourism-related expenditures in Jacksonville (was, use at least two-thirds of the funds remitted to it for tourism related expenditures and use the remainder to promote travel and tourism in Jacksonville; also deletes the requirement that one half of the funds used for tourism related expenditures be used to construct a sports complex). 

Authorizes the Sanford City Council 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 Provides that the tax must be levied, administered, collected, and repealed as provided in GS 160A-215 (Uniform provisions for room occupancy taxes).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 Sanford Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism in the city and the remainder for the operation, maintenance, promotion, and renovation of the Dennis A. Wicker Civic Center; any funds dedicated for the Civic Center that are not spent or obligated by the close of the fiscal year may be used to promote travel and tourism in Sanford. Mandates that at least one-third of the TDA’s members 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. Makes conforming changes to GS 160A-215.

Creates Harnett County District H as a taxing district, with the jurisdiction consisting of all of Harnett County, exclusive of the Averasboro Township. Authorizes the governing body of Harnett County District H to levy a room occupancy tax of up to 6% and specifies that the tax is in addition to any state or local sales or room occupancy tax. Requires that any tax be levied, administered, collected, and repealed as provided in GS 153A-155 as if Harnett County District H were a county. Requires Harnett County District H to remit the net proceeds of the occupancy tax on a quarterly basis to the Harnett County District H Tourism Development Authority. The Tourism Development Authority is required to use at least two-thirds of the proceeds to promote travel and tourism and the remainder for tourism-related expenditures in the district. Mandates that at least one-third of the Tourism Development Authority members 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. Makes conforming changes to GS 153A-155.

Amends SL 1983-983, as amended, as follows. Allows Cumberland County to levy a room occupancy tax not to exceed 3% of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, or inn located in Cumberland County subject to the State sales tax (was, may impose and levy a tax not to exceed 3% of the gross receipts of any person, firm, corporation, or association derived from the rental of any sleeping room or lodging furnished in any hotel, motel, or inn located in the County and subject to the State sales tax). Deletes the exemptions for persons using a room or lodging for 90 days or more, and for lodgings furnished by charitable, educational, benevolent, or religious institutions or nonprofit organizations. Makes conforming changes. Requires that the net proceeds of the occupancy tax be retained by the county and be used as follows: (1) 47% invested in capital needs and improvements of facilities that enhance travel and tourism within the county; (2) 26% must be disbursed through contracting with community organizations or private vendors to promote, market, and advertise festivals, athletic events and tournaments, arts venues, cultural arts, community markets, and other events that encourage tourism and travel to the County; (3) 20% disbursed through contracting with community organizations or private vendors to market the community by advertising and promoting travel, tourism, and conventions within the County; and (4) 7% to market Cumberland County for economic development purposes. Makes conforming deletions. Deletes all provisions related to the Tourism Development Authority. Requires the Cumberland County Board of Commissioners to adopt a resolution, within 60 days of the effective date of the act, dissolving the Tourism Development Authority.

Repeals Section 7 of SL 1993-413, which established penalties for the refusal to file a return and pay the prepared food and beverage tax. Amends Section 8 of SL 1993-413 to require Cumberland County to use the proceeds of the prepared food and beverage tax, as instructed in the act, and for any purpose that promotes or enhances tourism, travel, arts, entertainment, and sports venues and activities within Cumberland County (no longer requires the County to transfer the proceeds of the prepared food and beverage tax to the Cumberland County Civic Center Commission). Amends Section 11 of SL 1993-413 to no longer require the Cumberland County Board of Commissioners to repeal the food and beverage tax when the new or expanded arena facilities for which the tax was imposed are constructed and any debt for those facilities has been paid.