HB 143 — Sanford and Harnett Occupancy Tax.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 21 HOUSE BILL 143 Committee Substitute Favorable 4/24/17 Short Title:

Sanford and Harnett Occupancy Tax.

Representative Sauls.

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

State and Local Government II, if favorable, Finance February 22, 2017 A BILL TO BE ENTITLED AN ACT TO AUTHORIZE THE CITY OF SANFORD TO LEVY AN OCCUPANCY TAX AND 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.

9SECTION PART1. I.

SANFORD OCCUPANCY TAX SECTION 1.

– When the City Council adopts a resolution levying a room occupancy tax under this section, it shall also adopt a resolution creating the Sanford Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal *H143-v-2* General Assembly Of North Carolina Session 2017 Control Act.

At least one-third of the members shall be individuals who are affiliated with businesses that collect the tax in the citycity, and at least one-half of the members shall be individuals who are currently active in the promotion of travel and tourism in *H143-v-1* General Assembly Of North Carolina Session 2017 the city.

PARTSECTION II.2.

HARNETTG.S. COUNTY OCCUPANCY TAX SECTION 2.1.(a) District H Created.

– Harnett County District H is created as a taxing district.

Its jurisdiction consists of all of Harnett County exclusive of the Averasboro Township.

Harnett County District H is a body politic and corporate and has the power to carry out the provisions of this section.

The Harnett County Board of Commissioners shall serve ex officio as the governing body of the district and the officers of the board of commissioners shall serve as the officers of the governing body of the district.

A simple majority of the governing body constitutes a quorum and approval by a majority of those present is sufficient to determine any matter before the governing body, if a quorum is present.

SECTION 2.1.(b) Authorization and Scope.

– The governing body of Harnett County District H may levy a room occupancy tax of up to six percent (6%) 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 district 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 or room occupancy tax.

SECTION 2.1.(c) Administration.

– A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S.

153A-155 as if Harnett County District H were a county.

The penalties provided in G.S.

153A-155 apply to a tax levied under this section.

SECTION 2.1.(d) Distribution and Use of Tax Revenue.

– Harnett County District H shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Harnett County District H Tourism Development Authority.

The Harnett County District H Tourism Development Authority shall use at least two-thirds of the proceeds to promote travel and tourism and shall use the remainder for tourism-related expenditures in the district.

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 Harnett County District H.

The following definitions apply in this subsection:

(1) Net proceeds.

– Gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer, not 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 receipts collected each year.

Page 2 House Bill 143-Second Edition General Assembly Of North Carolina Session 2017 (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, in the judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in the county or to attract tourists or business travelers to the district.

The term includes tourism-related capital expenditures.

SECTION 2.2.

Harnett County District H Tourism Development Authority.