Agenda - 08-23-2011 - 8d - Laserfiche WebLink

Browse Search

~Gtch m~~-t~ ~ 40 -GENERAL ASSEl~IBLY OF NORTH CAROLINA SESSION 2011 SESSION LA.W 26-11-69 SENATE BILL 269 AN ACT TO AUTHORIZE THE TOWN OF HILLSBOROUGFI TO LEVY A ROOM OCCUPANCY TAX. The General Assembly of North Carolina enacts: SECTION 1.1. Occupancy tax. - (a) Authorization and Scope. -The Town Board of the Town -of Hillsborough may -levy a room occupancy tax of up to three percent (3%) -of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place- within the town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3). This tax is in addition to any State or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations vvhen-furnished=-in -furtherance of their nonprofit purpose. SECTION 1.1.(b) Administration. - A tax levied under this-section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215. ThE penalties provided in G.S. 160A-215 appl-y to a tax levied under this section. SECTION LL(c) distribution and Use of 'Tax Revenue. -The Town of Hillsborough shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Hillsborough- Tourism Development Authority. Tire Authority shall use at least two-thirds of the funds remitted to it under this subsection to .promote -travel ar~d tourism in the Town of Hillsborough and shall use the remainder for tourism-related expenditures. T-ho following definitions apply in this subsection: (1) Net proceeds. -Gross proceedsr Less the eost to the town of administering. and collecting the tax, as determined by the f-tnance officer, _nut to -exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross proceeds collected each year. (2) Promote travel and tourism. - To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business -travelers to the area; the term includes administrative expenses incurred in engaging in the listed activities. (3) Tourism-related expenditures. -Expenditures that, irL the judgment of the Hillsborough Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in the town or to attract tourists or business travelers to the town. The term includes tourism-related capital expenditures. SECTION 1.2. Tourism Development Authority. - (a) Appointment and Membership. -When the Town Board adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating the. Hillsborough Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal- Control Act. The resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority. At least one-third of the members shall be individuals who are affiliated with businesses that collect the tax in the town, and at least one-half of the members shall be individuals who are currently active in the promotion of the travel and tourism in the town. The Town Board shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority. The Authority shall meet at the call of the chair and shall adopt rules of mmmo