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

Part I.

Amends the use of the Avery County District A occupancy tax by no longer prohibiting the use of the proceeds to promote travel or tourism in areas within Avery County that are outside of the district or for tourism-related expenditures in the county that are outside of the district.

Part II.

Requires the Indian Trail Tourism Development Authority to use the proceeds of the occupancy tax for promoting travel and tourism in the town and for tourism-related expenditures in the town as provided for in the Part (was, must expend the net proceeds of the tax for purposes specified in the Part and required promoting travel, tourism, and conventions in the town, sponsoring tourist-related events and activities in the town, and financing tourist-related capital projects in the town).

Part III.

Amends the use of the Stallings District S occupancy tax by no longer prohibiting the use of the proceeds to promote travel or tourism in areas within Stallings that are outside of the district. Requires the Stallings District S Tourism Development Authority to use the proceeds of the occupancy tax for promoting travel and tourism in the district and for tourism-related expenditures in the district as provided for in the Part (was, must expend the net proceeds of the tax for purposes specified in the Part and required promoting travel, tourism, and conventions in the district, sponsoring tourist-related events and activities in the district, and financing tourist-related capital projects in the district).

Part IV.

Requires the Union County Tourism Development Authority to use the proceeds of the occupancy tax for promoting travel and tourism in the county and for tourism-related expenditures in the county as provided for in the Part (was, must expend the net proceeds of the tax for purposes specified in the Part and required promoting travel, tourism, and conventions in the county, sponsoring tourist-related events and activities in the county, and financing tourist-related capital projects in the county).

Expands upon the act by adding the following provisions.

Part V.

Creates a new tax district in Graham County consisting of the part of the County located outside of incorporated areas within the County, to be called Graham County District G. The District is a body politic and corporate. Provides for the governance of that district by the Graham County Board of Commissioners.

Authorizes the Graham County District G 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 153A-155 (uniform provisions for room occupancy taxes). Requires the Graham County 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 in the District.

Part VI.

Authorizes the Town of Lansing Board of Aldermen 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 Lansing Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism and the remainder for tourism–related expenditures in the town. Mandates that at least one-third of the members of the TDA must be affiliated with businesses that collect the tax in the town and at least one-half must be currently active in the town's travel and tourism promotion. Makes conforming changes. 

Part VII.

Authorizes the Town of Jefferson Board of Aldermen 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 Jefferson Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism and the remainder for tourism–related expenditures in the town. Mandates that at least one-third of the members of the TDA must be affiliated with businesses that collect the tax in the town and at least one-half must be currently active in the town's travel and tourism promotion. Makes conforming changes. 

Part VIII.

Authorizes Stokes County Board of Commissioners 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 Stokes County Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism and the remainder for tourism–related expenditures in the county. 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.

Part IX.

Repeals Part IX of SL 2001-439 (authorizing occupancy tax for the Town of Wilkesboro). Repeals sections 8 and 9 of SL 2010-78 (creating Wilkes County District K tax district). Provides that any revenue collected pursuant to those repealed laws prior to the effective date may only be used for the direct benefit of the Town of Wilkesboro/Wilkes County District K. Specifies that net proceeds of the occupancy tax levied under this Part supplements, rather than supplants, any proceeds being used that are derived from these repealed taxes. Effective when the Wilkes County District W governing body adopts a resolution levying a room occupancy tax under this Part.

Creates Wilkes County District W (District W) as a taxing district. Defines its jurisdiction as only that part of Wilkes County that is located outside of the incorporated area of the Town of Elkin. Specifies that the Wilkes County Board of Commissioners will serve as the officers of the governing body of District W, which is a body politic with the powers to carry out the powers enumerated in the act. Sets forth rules regarding quorum. Authorizes District W 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) as if District W were a county. Specifies that in accordance with the North Carolina Constitution and the United States Constitution, the tax proceeds may be used only for the direct benefit of the jurisdiction of District W. Requires at least two-thirds of the funds be used to promote travel and tourism with the remainder for tourism-related expenditures in the district. None of the proceeds may be used to promote travel or tourism or for tourism-related expenditures in areas within Wilkes County that are outside of the district. Requires that the Tourism Development Authority consist of the members appointed by the specified entities; requires membership consist of at least one-third of the members who are affiliated with the businesses that collect the tax in the district and at least one-half of the members who are currently active in the promotion of travel and tourism in the district.

Part X.

Amends the taxing authority of the Yancey County Board of Commissioners (Board) under SL 1987-140, as amended. Authorizes the Board to levy an additional room occupancy tax of up to 3% of the gross receipts derived from the rental of accommodations that are taxable. No longer explicitly excepts accommodations furnished by educational, religious, or summer camp organizations. Clarifies that the tax is in addition to any State or local sales or room occupancy tax. Authorizes the Board to levy an additional room occupancy of up to 3%, provided the Board also levies the initially authorized room occupancy tax. Provides for the levy, collection, administration, and repeal of the taxes authorized by the act as provided in GS 153A-155; makes conforming repeals to previous provisions providing for the same. Provides for penalties under State law. 

Replaces the distribution of proceeds provisions as follows. Now requires the County to quarterly remit the tax proceeds to the Yancey County Tourism Development Authority (TDA), which must use at least two-thirds of the proceeds to promote travel and tourism, with the remainder used for tourism-related expenditures in the county. Sets forth three defined terms.

Concerning the creation of the TDA upon the Board adopting a resolution to levy the occupancy tax, requires including that the TDA is a public authority under the Local Government Budget and Fiscal Control Act. Requires the resolution to provide for membership, terms of office, and filling of vacancies on the TDA, including that membership be one-third individuals affiliated with businesses collecting the tax and one-half individuals who are currently active in the promotion of travel and tourism in the district. Requires designation of the chair and member compensation, if any. Requires the TDA to meet at the call of the chair and adopt procedural rules. Names the County Finance Officer as the ex officio officer. Charges the TDA with expending the net proceeds of the occupancy tax and promoting travel and tourism in the district, and making tourism-related expenditures in the district. Directs the TDA to quarterly report to the Board, as well as at the close of the fiscal year, on its receipts and expenditures for the preceding quarter and for the year. Makes conforming repeals to eliminate the Chamber of Commerce Board of Directors' authorities under the act. 

Part XI.

Creates Clayton District C (District) as a taxing district. Specifies that the District is a body politic and corporate and has the power to carry out the provisions of the act. Directs the Clayton Town Council to serve ex officio as the governing body of the District, and the officers of the town to serve as the officers of the governing body of the District. Sets forth rules governing quorum. Authorizes the District to levy a room occupancy tax of up to 2%. 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 Johnston County 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 in the District. 

Part XII.

Amends SL 1987-141, as follows. Allows Mitchell County to levy room occupancy tax of up to 3% (was, tax of 3%) and adds that an additional room occupancy tax of up to 3% may be levied. Prohibits levying the additional tax unless the original occupancy tax is levied.

Part XIII.

Authorizes the Warren County Board of Commissioners to levy a room occupancy tax of 5%. 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 Warren County 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. Requires the Warren County Board of Commissioners to adopt a resolution creating a TDA. Requires at least one-third of the TDA's members be affiliated with businesses that collect the tax in the county, and at least one-half of the members be currently active in the promotion of travel and tourism in the county. Requires the Board of Commissioners to designate one member of the TDA as chair and determine the compensation to be paid. Sets out the TDA's duties and reporting requirements.

Part XIV.

Authorizes the St. James Town Council to levy a room occupancy tax of up to 5%. 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 Town of St. James Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism in the town 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 town and at least one-half must be currently active in the town's travel and tourism promotion.

Part XV.

Authorizes the Four Oaks Board of Commissioners to levy a room occupancy tax of up to 2%. 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 Johnson County Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism in the town and the remainder for tourism–related expenditures.

Part XVI.

Allows the Bertie County Board of Commissioners (Board) to levy a room occupancy tax of up to 6% of the gross receipts derived from the rental of an accommodation within the county that is subject to sales tax imposed by the State under GS 105-164.4(a)(3) (state sales tax for rentals of an accommodation) in addition to any other state or local sales tax. Requires that the new local tax be levied, administered, collected and repealed under the provisions set forth in GS 153A-155 (uniform provisions for room taxes). Requires Bertie County to remit the net proceeds of the occupancy tax to the Authority on a quarterly basis. Requires the Authority to use at least two-thirds of the funds to promote travel and tourism and use the remainder for tourism-related expenditures in the county. Requires the Board to create the Authority along with its resolution adopting the local room occupancy tax. Requires at least one-third of the members to be individuals who are affiliated with businesses that collect tax in the county, and at least one-half of the members to be individuals who are currently active in the promotion of travel and tourism in the county. Requires the Authority to expend the net proceeds of the new local room occupancy tax for promoting travel and tourism and for tourism-related expenditures.

Part XVII.

Specifies that the portions of Iredell County located outside of incorporated areas within the County is to be called Iredell County District I. The District is a body politic and corporate. Provides for the governance of that district by the Iredell County Board of Commissioners. 

Authorizes the Iredell County District I governing body 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 adoption of a resolution establishing the Iredell County District I Tourism Development Authority (TDA) at the time of the adoption of a resolution levying the tax. 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. Requires the 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 in the District.

Repeals Part IV of SL 1985-570, as amended (pertaining to Iredell countywide occupancy tax).  Effective when the governing body of Iredell County District I adopts a resolution levying a room occupancy tax.

Part XVIII.

Amends SL 1985-923, as amended, as follows. Authorizes the Swain County Board of Commissioners (Board) to levy a room occupancy tax of up to 3% on gross receipts derived from the rental of an accommodation in the county (was, rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place). Eliminates the exclusion of accommodations furnished to nonprofit charitable, educational, or religious organizations. Makes the current provision concerning the distribution and use of the tax applicable only until the Joint County-City Tourism Development Authority is established. Requires within 60 days of the act becoming effective, that the Board and the Bryson City Board of Aldermen adopt a joint resolution converting the Swain County Tourism Development Authority to the Swain County-Bryson City Tourism Development Authority (TDA). Requires the county to transfer the assets of the Swain County Tourism Development Authority to the new TDA. Sets out the membership and appointing authorities for the new TDA. Requires the TDA to expend the net proceeds of the tax on promoting travel and tourism and for tourism-related expenditures. Once the new TDA has been established requires Swain County to quarterly remit the proceeds of the occupancy tax to the new TDA. Requires the new TDA to segregate the funds into two separate accounts based on the jurisdiction from which they were collected (Bryson City vs Swain County); requires at least two-thirds of the funds in each account to be used to promote travel in the relevant area and for the remainder to be used for tourism-related expenditures in the relevant area. Allows the new TDA to use funds held in either/both accounts for a grant program providing financial assistance for tourism projects that will promote travel and tourism in the city or county or that will increase the use of accommodations, meeting facilities, or convention facilities in the county or city. Requires the TDA to create a website that contains the required quarterly reports, TDA member contact information, and the TDA’s policy for providing grants.

Requires the Office of the State Auditor to audit the Swain County Tourism Development Authority for 2020-21, 2021-22, and 2022-23 and sets out issues that must be addressed in the audit. Requires a report to the specified NCGA committee and division by the convening of the 2025 General Assembly.

Part XXII.

Amends SL 2013-223, Section 2(i), under which Carteret County may use 50% of occupancy tax revenue for beach nourishment on Bogue Banks. Provides that Carteret County may not accumulate a balance of tax proceeds for beach nourishment in excess of $60 million (was, $30 million).

Part XXIII.

Creates a new tax district in Davidson County consisting of the part of the County located outside of incorporated areas within the County, to be called Davidson County District D. The District is a body politic and corporate. Provides for the governance of that district by the Davidson County Board of Commissioners.

Authorizes the Davidson County District D governing body 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 Davidson County 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 in the district.

Part XXIV.

Creates a new tax district in Davie County consisting of the part of the County located outside of incorporated areas of Mocksville, Bermuda Run, and Coolemee, to be called Davie County District E. The District is a body politic and corporate. Provides for the governance of that district by the Davie County Board of Commissioners.

Authorizes the Davie County District E 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 153A-155 (uniform provisions for room occupancy taxes). Requires the Davie County District E 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 in the district.

Part XXV.

Amends Section 9.1 of SL 1983-908, as amended, as follows. Extends the repeal of Section 7 and Section 9(a)(4)b., the Mecklenburg County prepared food and beverages tax and distribution of a portion of occupancy tax proceeds to specified Mecklenburg County towns, to July 1, 2060.

Part XXVI.

Makes conforming changes to GS 153A-155 and GS 160A-215.

Makes additional organizational changes and changes the act’s titles.