NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 1012

HOUSE BILL 604

 

 

AN ACT TO AMEND G.S. 105-61 RELATING TO LICENSE FEES FOR HOTELS, MOTELS, TOURIST COURTS, TOURIST HOMES AND SIMILAR PLACES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 105-60 is hereby deleted, and G.S. 105-61 is hereby amended by rewriting said Section to read as follows:

"G.S. 105-61.  Hotels, Motels, Tourist Courts and Tourist Homes. (a) Every person, firm, or corporation engaged in the business of operating any hotel or motel, tourist court, tourist home, or similar place advertising in any manner for transient patronage, or soliciting such business, shall apply for and procure from the Commissioner of Revenue a State license for the privilege of transacting or engaging in such business, and shall pay for such license a tax of two dollars ($2.00) per room. The minimum tax shall be ten dollars ($10.00).

"For the purpose of this Section, the lobby, clubroom, office, dining room, kitchen and rooms occupied by the owner or lessee of the premises, or members of his family, for his or their personal or private use, shall not be counted in determining the number of rooms for the basis of the tax. The tax herein levied shall be in addition to any tax levied in G.S. 105-62 for the sale of prepared food.

"(b)      Hotel as referred to in this Section shall be given its general or customary meaning; that is, a building or group of buildings providing lodging and usually (but not necessarily) meals, entertainment, and various personal services for the public.

"Motel as referred to in this Section shall be given its general or customary meaning; that is, a building or group of buildings in which the rooms usually are directly accessible from an outdoor parking area and which are used primarily as lodgings for the public.

"In addition to hotels and motels, there is included within the meaning of this Section tourist courts, tourist homes and similar places—including, but not limited to, tourist camps, semi-detached apartments, resort lodgings and detached structures whenever the operator advertises in any manner for transient patronage, or solicits such business. The principal test of liability is the use of such places for temporary abode by transient patrons. Such patrons are defined as staying for a short time, stopping for a brief period only, not permanent.

"(c)       It is immaterial for the purposes of this Section whether the rental to patrons is on a daily, weekly, biweekly or monthly basis, and it is also immaterial, as to any particular room, whether such room is occupied by a 'permanent' guest.

"(d)      'Advertising in any manner' within the meaning of this Section shall be broadly construed to cover any media of advertising whereby the availability of the accommodations may be made known and includes, but is not limited to, signs, placards, folders, newspaper ads, classified ads, listings in commercial or tourist circulars and any other form or means whereby the accommodations may be publicized. Soliciting such business includes every form of solicitation, or listings with boards of trade or chambers of commerce, by a hotel, motel, or any other place referred to herein accommodating transient patrons.

"(e)       Private residences or cottages designed for single family occupancy located in resort areas and occupied during a part of the season by the owners thereof but rented the remainder of the season to others for single family occupancy do not come within the purview of this Section. Such use and occupancy by such tenants is regarded as occasional or incidental and does not require the owner to procure a privilege license under this Section.

"(f)       Counties shall not levy any license tax on the business taxed under this Section, but cities and towns may levy a license tax not in excess of one-half of the base tax levied by the State."

Sec. 2.  All laws and clauses of laws in conflict with this Act, and specifically G.S. 105-60, are hereby repealed.

Sec. 3.  This Act shall be in full force and effect on and after July 1, 1965, except that where the seasonal rate is applicable under G.S. 155-33(k), this Act shall be effective June 1, 1965. Notwithstanding the provisions of Section 2 of this Act, the provisions of the law in effect prior to the effective date of this Act shall remain in full force and effect with respect to any acts or transactions done or performed prior to the effective date of this Act.

In the General Assembly read three times and ratified, this the 14th day of June, 1965.