HB 332 — Nash/Rocky Mount Occupancy Tax Changes.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 21 HOUSE BILL 332 Committee Substitute Favorable 5/20/25 Short Title:

Nash/RockyModify MountNash DistrictCounty Occupancy Tax.

Representative Chesser.

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

Finance, if favorable, Rules, Calendar, and Operations of the House March 10, 2025 A BILL TO BE ENTITLED AN ACT TO MODIFY THE NASH COUNTY OCCUPANCY TAX, TO AUTHORIZE THE CREATION OF ROCKY MOUNT DISTRICT R, AND TO AUTHORIZE THE DISTRICT TO LEVY A THREE PERCENT ROOM OCCUPANCY TAX.

7SECTION PART1. I.

NASH COUNTY OCCUPANCY TAX CHANGES SECTION 1.(a) Sections 1 and 2 of Chapter 32 of the 1987 Session Laws, as amended by S.L.

– The Nash County Board of Commissioners may levy a room occupancy tax of three percent (3%) of the gross receipts derived from the rental of any room, lodging, or similar an accommodation furnished by a hotel, motel, inn, or similar place within the county that is subject to sales tax imposed by the State under G.S.

– Nash County shall, on a quarterly basis, remit the net proceeds of the occupancy tax levied under subsection (a) of this section to the Nash County Tourism Development Authority and the net proceeds of the occupancy tax levied under subsection (a1) of this section to the City of Rocky Mount.

Authority.The Authority shall spend at least two-thirds of the funds remitted to it only to promote travel and tourism in Nash County, and shall spend the remainder on tourism-related expenditures.

The AuthorityCityof Rocky Mount shall spend use at least two-thirds of the funds remitted to it only tofor promotetourism-related travelexpenditures andwithin tourismNash inCounty Nashthat County,have thebeen countyspecifically andapproved shallin spendadvance useby the remainderNash onCounty forTourism tourism-relatedDevelopment expenditures.Authority.

The City of Rocky Mount shall spend the funds remitted to it only for tourism-related expenditures within Nash County that have been specifically approved in advance by the NashCity Countyof TourismRocky DevelopmentMount. Authority.

expenditures in the county.

*H332-v-2* General Assembly Of North Carolina Session 2025 (1) Net proceeds.

– Gross proceeds less the cost to the county of administering and collectingthetax,as determinedbythefinanceofficer,not to exceedthree percent (3%) of the first five hundred thousand dollars ($500,000) of gross *H332-v-1* General Assembly Of North Carolina Session 2025 proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.

(3) Tourism-relatedTourism-relatedexpenditures. expenditures.

––Expenditures Expendituresthataredesignedto thatincreasethe that, in the judgment of the Tourism Development Authority, are designed to increase the use of lodging facilities in a county accommodations,or meetingto facilities,attract tourists or conventionbusiness facilitiestravelers into the county orand toexpenditures attractincurred touristsby orthe businesscounty travelersin tocollecting the countytax. andexpendituresincurredbythecountyincollectingthetax.

county.ThetermThe term includes expenditures to construct, maintain, operate, or market a convention center and other expenditures that, in the judgment of the Authority, will facilitate and support tourism.tourism-relatedtourism. capital expenditures.

Theresolution shall provide for the Board of Commissioners to appoint the membership of the Authority, for the termstermsofofficeofthemembers,andforthefillingofvacanciesontheAuthority.Atleastone-third of officethe ofmembers themust members,be includingindividuals thewho members'are termsaffiliated ofwith office,businesses andthat forcollect the fillingtax ofin vacancies on the Authority.county.

At least one-third of the members must be individuals who are affiliated with businesses that collect the tax in the county.

county, and at least one-half of the members must be individuals who are currently active in the promotion of travel and tourism in the county.

No elected official may serve as a member of the Authority.

– The Authority shall report quarterly and at the close of the fiscal year to the Board of County Commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the Board may require." SECTION 1.(b)2. This section is effective July 1, 2025, and applies to gross receipts derived from the rental of an accommodation that a person occupies or has the right to occupy on or after that date.

TheThis reductionact ofis the room occupancy tax under this section does not affect a liability for a tax that was attached before the effective datewhen of the reduction, nor does it affectbecomes alaw. right to a refund of a tax that accrued before the effective date of the reduction.

SECTION 1.(c) As soon as practicable after the repeal of the two percent (2%) room occupancy tax under this section and the creation of the Rocky Mount District R Tourism Development Authority under Section 2.3 of this act, Nash County shall remit to the Rocky Mount District R Tourism Development Authority the net proceeds of the two percent (2%) Page 2 House Bill 332-Second332-First Edition General Assembly Of North Carolina Session 2025 occupancy tax that have been collected but not yet remitted to the City of Rocky Mount.

In addition, any unexpended net proceeds of the two percent (2%) room occupancy tax held by the Cityof RockyMount as of July1, 2025, shall be remitted to theRockyMount District R Tourism Development Authority upon its creation.

The net proceeds derived from the two percent (2%) occupancy tax that are remitted to the Rocky Mount District R Tourism Development Authority under this subsection shall be used for the same purposes as authorized for the City of Rocky Mount underSection 1(c)ofChapter32ofthe1987Session Laws,as amendedbyS.L.1993-545, S.L.

1997-255, and S.L.

2001-349.

PART II.

ROCKY MOUNT DISTRICT R OCCUPANCY TAX SECTION 2.1.

Rocky Mount District R Created.

– Rocky Mount District R is created as a taxing district.

Its jurisdiction consists of only that part of Rocky Mount that is located within Nash County.

Rocky Mount District R is a body politic and corporate and has the power to carry out the provisions of this Part.

The Rocky Mount City Council shall serve ex officio as the governing bodyof the district, and the officers of the City 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.

SECTION2.2.

Occupancytax.–(a)AuthorizationandScope.–Thegoverningbody of Rocky Mount District R may levy a room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of an accommodation within the district that is subject to sales tax imposed by the State under G.S.

105-164.4(a)(3).