Senate committee substitute to the 2nd edition makes the following changes. Amends the act’s titles.

Part I.

Changes the effective date of the changes to the Nash County occupancy tax so that it is effective October 1, 2026. Makes conforming changes.

Makes a clarifying change to existing Section 2.3.

Makes organizational changes to move all of the existing provisions into Section 1.

Adds the following new content.

Part II.

Increases Haywood County’s (County) authority to impose an occupancy tax under Part V of SL 1983-908, as amended, from 2% of gross receipts of the specified rentals to 6% of gross receipts derived from the rental of an accommodation within the county subject to State sales tax. Removes both of the optional 1% occupancy taxes. Makes conforming changes. Requires the County to remit the net proceeds of the tax on a quarterly basis (was, monthly) to the County’s Tourism Development Authority (TDA). Requires the TDA to use one-third of the funds for tourism-related expenditures in the county and two-thirds to promote travel and tourism in the county (was, TDA had to use at least two-thirds of the remitted funds to promote travel and tourism with the remainder for tourism-related expenditures). Decreases the TDA’s members from fifteen to eight. Details residency requirements for the TDA members who: (1) own or operate the specified lodging and (2) own or operate tourism-related businesses. Decreases the number of members who own or operate lodging from six to four. Removes the four at-large members. Reduces the number of ex officio nonvoting members from three to one (the County finance officer). Designates the TDA member who is on the County Board of Commissioners a voting member. Removes the Executive Director of the County Economic Development Commission. Removes provisions pertaining to terms, specifying that TDA members are not compensated, and describing how vacancies are filled. Requires the Board to provide for members’ terms of office and filling of vacancies on the TDA by resolution. Tasks the Board with designating a chair and determining the amount of compensation, if any, to be paid to TDA members. Removes provisions limiting the chair’s ability to vote. Changes the County finance officer’s duty from the TDA’s ex officio account to the TDA’s ex officio finance officer. Requires the TDA to expend tax proceeds on promoting travel and tourism and for tourism-related expenditures. Makes technical changes. Requires that the Board of Commissioners adopt a resolution modifying the TDA when it adopts a resolution levying an increase in the room occupancy tax as authorized in this act. Makes conforming changes to the act’s long and short titles.

Part III.

Creates the Beaufort County District B Taxing District, with its jurisdiction being in that part of the county located outside of the incorporated area of the City of Washington. Makes the Beaufort County Board of Commissioners the governing body of the District. Authorizes the governing body of the taxing district to levy a room occupancy tax of up to 6%. Provides that the tax must be levied, administered, collected, and repealed as provided in GS 153A-155 (uniform provisions for room occupancy taxes). Requires the Beaufort County District B Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism in the county 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 county and at least one-half must be currently active in the county's travel and tourism promotion. Makes conforming changes. 

Part IV.

Amends SL 1983-1055 (Cherokee County’s Occupancy Tax), as amended, by adding new requirement that Cherokee County Tourism Development Authority (TDA) members serve for three-year terms and no more than two consecutive full terms unless at least 12 months has elapsed since the expiration of the member’s second full term. Requires TDA to be composed of seven members with (1) one member being a member of the Cherokee County Board of Commissioners (Board), (2) one member nominated by the Town Council of the Town of Murphy who is actively engaged in the county’s travel and tourism promotion or the collection of the occupancy tax, (3) one member nominated by the Board of Aldermen of the Town of Andrews who is actively engaged in the county’s travel and tourism promotion or the collection of the occupancy tax, and (4) four members currently active in the county’s promotion of travel and tourism or who collect the occupancy tax.

Modifications to appointments and term limits of TDA become incrementally effective upon expiration of the terms of current members of the Authority.