HB 17 — Local Option Meals Tax/Brunswick Co. Munis.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 H 23 HOUSE BILL 17 Committee Substitute Favorable 2/13/19 Committee Substitute #2 Favorable 7/11/19 Short Title:

February 4, 2019 A BILL TO BE ENTITLED AN ACT TO AUTHORIZE THE MUNICIPALITIES LOCATED IN BRUNSWICK COUNTY TO LEVY EITHER BY RESOLUTION OR BY REFERENDUM A PREPARED FOOD AND BEVERAGES TAX.

SECTIONSECTION1.(a) 1.(a)Authorization. Authority.

– TheIfthe governingmajorityofthosevotingin bodyareferendum ofheld apursuanttothisactvoteforthelevyofthetax,thegoverningbodyofamunicipalityin municipality in Brunswick County maymay, by resolution and after 10 days' public notice, levy a local prepared food and beverages tax of up to one-half percent (0.5%) of the sales price of prepared food and beverages sold within the municipality at retail for consumption on or off the premises by a retailer subject to sales tax under G.S.

105-164.4(a)(1)105-164.4(a)(1). upon the occurrence of an action listed in this subsection.

For purposes of catering, the tax applies to food and beverage served in the town without regard to the residency of the caterer.

TheSECTION occurrences1.(b) onVote. which the municipality may levy the tax are as follows:

(1)– The governinggoverningbodyof bodya ofmunicipalityin Brunswick County may direct the municipality,county byboard resolutionof andelections afterto notconduct lessan thanadvisory 10referendum days'on publicthe noticequestion andof whether to levy a publiclocal hearing,prepared leviesfood and beverages tax in the tax.taxing unit as provided in this act.

(2) The majority of those voting in a referendum held pursuant to this act vote for the levy of the tax, and the governing body of the municipality, by resolution, levies the tax.

If pursuant to this subdivision, the governing body shall direct the county board of elections to conduct an advisory referendum in the municipality on the question of whether to levy a local prepared food and beverages tax in the taxing unit as provided in this act.

163A-1592.163-287.

TheSECTION form1.(c) ofBallot theQuestion. question to be presented on a ballot for a special election concerning the levy of the tax authorized by this act shall be:

"[– ]The FORform [of ]the AGAINSTquestion One-halfto percentbe (0.5%)presented localon prepareda foodballot tax,for ina additionspecial toelection concerning the currentlevy localof salesthe andtax useauthorized taxes."by SECTIONthis 1.(b)act Definitions.shall be:

"[ ] FOR [ ] AGAINST One-half percent (0.5%) local prepared food and beverages tax, in addition to the current local sales and use taxes." SECTION 1.(d) Definitions.

SECTION 1.(c)1.(e) Exemptions.

*H17-v-2* General Assembly Of North Carolina Session 2019 (1) Prepared food and beverages served to residents in boardinghouses and sold together on a periodic basis with rental of a sleeping room or lodging.

*H17-v-3* General Assembly Of North Carolina Session 2019 (4) Prepared food and beverages served by a retailer subject to the local occupancy tax if the charge for the prepared food and beverages is included in a single, nonitemized sales price together with the charge for rental of a room, lodging, or accommodation furnished by the retailer.

SECTION 1.(d)1.(f) Collection.

SECTION 1.(e)1.(g) Administration.

A tax levied under this section is due and payable to the local administering authority as agent for the taxing entityin monthlyinstallments on or before the 20th daydayof of the month following the month in which the tax accrues.

Areturn filed underthis sectionis not apublic recordandmaynotrecordandmay not bedisclosedexcept in accordance with G.S.

SECTION 1.(f)1.(h) Refunds.

– The entity administering the tax shall refund to a nonprofit or governmental entity the prepared food and beverages tax paid by the entity on eligiblepurchases ofofprepared prepared foodandbeverages.

An applicant for a refund under this Page 2 House Bill 17-Second Edition General Assembly Of North Carolina Session 2019 subsection shall provide any information required by the entity administering the tax to substantiate the claim.

SECTION 1.(g)1.(i) Use of Proceeds.

The entity administering and collecting the tax may deduct from the gross proceeds of the taxes collected under this act an amount not to exceed three Page 2 House Bill 17-Third Edition General Assembly Of North Carolina Session 2019 percent (3%) of the gross proceeds to pay for the direct cost of administering and collecting the taxes.

SECTION 1.(h)1.(j) Effective Date of Levy.

SECTION 1.(i)1.(k) Repeal.

House Bill 17-Second17-Third Edition Page 3