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~-Ft-a~h mQ~n ~ 3 s <br />GENERAL ASSEMBLY OF NORTH CAROLINA <br />1987 SESSION <br />CHAPTER 460 <br />HOUSE BILL 917 <br />AN ACT MAKING SUNDRY AMENDMENTS CONCERNING LOCAL <br />GOVEP:Nl~NTS-IN ORANGE AND CHATHAM COUNTIES. <br />The -General Assembly of North Carolina enacts: <br />TITLE I. CHAPEL HILL fl.CCUPANCY TAK. <br />Section-1. Occupancy- Tax. (a) Authorization and scope. The-Chapel Hill <br />Town Cooneil may, by-ordinance, levy. a room- occupancy tax of no more than-three <br />percent (3%) on the gross receipts derived from the rental of any room, lodging,- o~ <br />similar accommodation subject to sales tax under G.S. 105--164:4(3}. <br />Tliis tax does not apply to accommodations furnished by nonprofit charitable, <br />educational, benevolent, or religious organisations when furnished in furtherance of <br />their nonprofit purpose. This tax is in addition t-o any State-or local sales tax_ <br />(b) Collection. Every operator of- a business subject to the tax levied <br />under this section shall, on and after theeffective date-of the levy of the tax, collect the <br />tax. This tax shall be collected as part of the charge for furnishing a taxable <br />accommodation. T-he tax shall be stated and charged= separately on the sales records, <br />and shal-1 be paid by the purchaser to the operator of the business-as trustee for- and on <br />account of the Town of Chapel Hill. The tax shall be added to the sales price and shall <br />be passed on to the- purchaser instead of being borne by the operator of the business. <br />The Town shall design, print,. and -furnish to all appropriate businesses- and persons in <br />the Town the necessary forms for_. filing returns and instructions to ensure the full <br />collection of the tax. <br />An operator of a business who collects the occupancy tax levied under this <br />section may deduct from the amount remitted by hire to the Town a discount of one <br />percent (1%) of the amount collected as reimbursement for the expenses incurred in <br />collecting the tax. <br />(c) Administration. The Town shall administer a tax levied under this <br />section. A tax levied under this section is due and payable to the -Town revenue <br />collector in monthly installments on or before the 15th day of the month following the <br />month in which the tax accrues. Every person, firm, corporation, or association liable <br />for the tax shall, on or before the 15th day of each month, prepare and render a return on <br />a form prescribed by the Town. The return shall state the total gross receipts derived in . <br />the preceding month from rentals and sales upon which the tax is levied. <br />(d) Penalties. A person, firm, corporation, or association who fails or <br />refuses to file the return required by this section shall pay a penalty of ten dollars <br />($10.00) for each day's omission. In case of failure or refusal to file the return or pay <br />