Bill Summary for H 531 (2015-2016)

Summary date: 

Sep 21 2015
S.L. 2015-255

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 531 (Local) Filed Wednesday, April 1, 2015
AN ACT TO AUTHORIZE WAYNE COUNTY AND THE CITY OF SANFORD TO LEVY A ROOM OCCUPANCY TAX; TO AUTHORIZE MOORE COUNTY TO LEVY AN ADDITIONAL THREE PERCENT ROOM OCCUPANCY TAX; TO CREATE A SPECIAL TAXING DISTRICT MADE UP OF ALL AREAS IN HARNETT COUNTY EXCLUSIVE OF THE AVERASBORO TOWNSHIP AND TO AUTHORIZE THAT SPECIAL TAXING DISTRICT TO LEVY A SIX PERCENT ROOM OCCUPANCY TAX; AND TO MAKE CHANGES TO THE CUMBERLAND COUNTY OCCUPANCY TAX AND PREPARED FOOD TAX.
Intro. by J. Bell, Dixon, L. Bell.

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Bill summary

Senate committee substitute makes the following changes to the 2nd edition.

Amends the short and long titles. 

Amends SL 2011-113 concerning the Moore County occupancy tax, adding a new subsection that authorizes the Moore County Board of Commissioners to levy an additional room occupancy tax of up to 3%. Provides that this tax cannot be levied unless the base occupancy tax of 3% is also levied. Removes an exception to the occupancy tax for accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.

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 Provides that the tax must be levied, administered, collected, and repealed as provided in GS 160A-215 (uniform provisions for room occupancy taxes).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 to use 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, with any funds dedicated for the Center remaining at the end of a fiscal year being available for use by the Authority for the promotion of travel and tourism. Mandates that at least one‑third of the members of the Authority 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.

Creates a special taxing district in Harnett County which includes all of the county with the exception of the Averasboro Township.  Provides that the Harnett County Board of Commissioners serve as the governing body of the district. Provides that the governing body is authorized to levy a 6% room occupancy tax in the district. Requires the proceeds of the tax to be remitted to the district's Tourism Development Authority, with two-thirds of the proceeds to be used to promote travel and tourism in the district, with the remaining funds being used for tourism-related expenditures. Mandates that at least one‑third of the members of the Authority 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.

Amends SL 2001-484 concerning the Cumberland County occupancy tax, deleting language which provided that the tax did not apply in instances where the same room or accommodations have been supplied to the same person for longer than 90 continuous days or for accommodations furnished by nonprofit charitable, educational, or religious organizations. Deletes all language and provisions which established and governed the Cumberland County Tourism Development Authority and its use of tax proceeds. Provides that the proceeds of the tax are now to be retained by the county and utilized as follows: (1) 47% must be invested in capital needs and improvements of facilities that enhance travel and tourism in 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 Cumberland County; (3) 20% must be disbursed through contracting with community organizations or private vendors to market the community by advertising and promoting travel, tourism, and conventions within Cumberland County; and (4) 7% must be used to market Cumberland County for economic development purposes. Amends the definition of net proceeds. Provides that within 60 days of this act becoming effective, the Cumberland County board of commissioners must adopt a resolution dissolving the Cumberland County Tourism Development Authority. 

Repeals Section 7 of SL 1993-413, concerning penalties for non-payment of Cumberland County prepared food and beverage tax.

Amends Section 8 of SL 1993-413 concerning the use of proceeds of the Cumberland County food and beverage tax, deleting language which required the tax to be remitted to the Cumberland County Civic Center Commission. Now requires the county to retain the proceeds and expands the permissible uses of the proceeds to include using it for any purpose that promotes or enhances tourism, travel, arts, entertainment, and sports venues and activities in the county. Deletes language which required the board of commissioners to repeal the tax when the arena facilities for which the tax was created was constructed and debt paid off. 

Makes conforming changes to GS 153A-155(g) and GS 160A-215(g), concerning the regulation of municipalities and counties that levy occupancy taxes. 

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