GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

SESSION LAW 1999-286
HOUSE BILL 812

AN ACT TO REMOVE THE SUNSET ON A REQUIREMENT THAT PART OF CERTAIN CRAVEN COUNTY PROCEEDS BE USED FOR A CONVENTION CENTER AND A TOURIST CENTER.

The General Assembly of North Carolina enacts:

Section 1.  Chapter 980 of the 1983 Session Laws, as amended by Chapter 710 of the 1985 Session Laws and Chapter 721 of the 1995 Session Laws, reenacted by Chapter 20 of the 1996 Second Extra Session, reads as rewritten:
"AN ACT TO ALLOW CRAVEN COUNTY TO LEVY A ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX.
"Section 1.  Levy of Tax. – (a)  The Board of Commissioners of Craven County may levy a room occupancy and tourism development 
	tax at the rate of three percent (3%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation furnished by any hotel, motel, inn, tourist camp, or other similar enterprise within the county now subject to the three percent (3%) sales tax imposed by the State under G.S. 105-164.4(a)(3).  This tax is in addition to any local sales tax.
"Sec. 2.1.  Additional Occupancy Tax. – In addition to the tax authorized by Section 1 of this act, the Craven County Board of Commissioners may levy a room occupancy tax of three percent (3%) of the gross receipts derived from the rental of any accommodations taxable under Section 1 of this act.  The levy, collection, administration, and repeal of the tax authorized by this section shall be in accordance with the provisions of this act.  Craven County may not levy a tax under this section unless it also levies the tax under Section 1 of this act.
"Sec. 3. – Exemptions.  The tax authorized by this act does not apply to gross receipts derived by the following entities from accommodations furnished by them:
(1)	religious organizations;
(2)	a business that offers to rent fewer than five units;
(3)	educational organizations; and
(4)	summer camps.
"Sec. 4.  Administration of Tax. – A tax levied under this act shall be levied, administered, collected, and repealed as provided in G.S. 153A-155.  The penalties provided in G.S. 153A-155 apply to a tax levied under this section.  Any repeal of the tax authorized in Section 2.1 of this act may not become effective before June 30, 2018. 	"Sec. 6.  Disposition of Taxes Collected. – (a) 'Net Proceeds' Defined. – As used in this act, the term 'net proceeds' means gross proceeds less the cost to the county of administering and collecting the tax, not to exceed three percent (3%) of the gross proceeds of the tax.
(a1)	Tax Levied Under Section 1. – Craven County shall remit the net proceeds of the occupancy tax levied under Section 1 of this act to the Craven County Tourism Development Authority.  The County Tourism Development Authority shall allocate the occupancy tax revenue remitted to it for the following purposes:
(1)	Direct advertising costs for visitor promotions, conventions, or tourism, including outdoor advertising, print media, broadcast media, and brochures;
(2)	Marketing and promotions expenses, including test market programs, consultant fees, entertainment, housing expenses, travel expenses, and registration fees;
(3)	Operating expenses for the Visitor Information Center, including postage, telephone, supplies, dues, subscriptions, equipment, rent, and overhead allocation;
(4)	Salaries, benefits, and expenses for Visitor Information Center personnel; and
(5)	Other expenses that aid and encourage visitor promotions, conventions, or tourism.
Thirty-five percent (35%) of the net proceeds in excess of one hundred thousand dollars ($100,000) remitted to the Authority pursuant to this subsection in a fiscal year shall be allocated to the Room Tax Trust Fund created pursuant to subsection (c) of this section.
(b)	Authority May Contract. – The County Tourism Development Authority may contract with appropriate organizations or agencies to assist it in carrying out the purposes provided in this section.
(c)	Tax Levied Under Section 2.1. – Craven County shall credit the net proceeds of the tax levied under Section 2.1 of this act to a separate Room Tax Trust Fund.  Monies in the Room Tax Trust Fund may be used only to construct, maintain, operate, or market a convention or meeting facility in New Bern and a tourist center in Havelock.  Any monies distributed to the City of New Bern or the City of Havelock from the Room Tax Trust Fund shall be maintained in and disbursed from a separate trust fund within the respective city's organizational chart of accounts.
"Sec. 7.  Appointment, Duties of Tourism Development Authority. – (a)  When the board of county commissioners adopts a resolution levying a room occupancy tax pursuant to this act, it shall also adopt a resolution creating a County Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act and shall be composed of the following members:
(1)	One county commissioner appointed by the Board of Commissioners of Craven County;
(2)	After the first full year of collections under this act, one person appointed by the governing board of each municipality from which, during the previous 12-month period, at least ten percent (10%) of the gross proceeds of the occupancy tax were collected;
(3)	One person representing motel operators, appointed by the board of commissioners;
(4)	One person with demonstrated interest in and support of tourism development, appointed by the New Bern-Craven Chamber of Commerce;
(4a)	One person with demonstrated interest in and support of tourism development, appointed by the Havelock Chamber of Commerce;
(5)	One person representing Tryon Palace Complex, appointed by the Tryon Palace Commission;
(6)	Two at-large members with a demonstrated interest in conventions and tourism development, appointed by the other members of the Authority; 
(7)	The finance officer of Craven County, who shall serve as a nonvoting, ex officio member; and
(8)	The Executive Director of the Authority, who shall serve as a nonvoting, ex officio member.
(b)	All members of the Authority shall serve without compensation.  Vacancies in the Authority shall be filled by the appointing authority of the member creating the vacancy.  Members appointed to fill vacancies shall serve for the remainder of the unexpired term for which they are appointed to fill.  Members shall serve three-year terms, except the initial members who shall serve the following terms:
(1)	Members appointed pursuant to subdivisions (a)(1) and (a)(2) shall serve a one-year term;
(2)	Members appointed pursuant to subdivisions (a)(3) and (a)(4) shall serve a two-year term; and
(3)	Members appointed pursuant to subdivisions (a)(5) and (a)(6) shall serve a three-year term.
(c)	A member appointed under subdivision (a)(2) shall serve his full term, regardless whether, during a 12-month period of his term, the percentage of the gross proceeds of the occupancy tax that are collected from the municipality he represents is less than ten percent (10%).
(d)	Members may serve no more than two consecutive three-year terms.  The members shall elect a chair, who shall serve for a term established in the bylaws of the Authority.  The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings.  The finance officer for Craven County shall be the ex officio finance officer of the Authority.
(e)	The Tourism Development Authority shall report at the close of the fiscal year to the board of county commissioners on its receipts and expenditures for the preceding year in such detail as the board may require.
		 
"Sec. 9.  This act is effective upon ratification."
Section 2.  County Administrative Provisions.  Section 3(b) of S.L. 1997-102, as amended by Section 2 of S.L. 1997-255, Section 2 of S.L. 1997-342, Section 3 of S.L. 1997-364, Section 6 of S.L. 1997-410, and Section 2 of S.L. 1998-14, reads as rewritten:
"(b)	This section applies only to Avery, Brunswick, Craven, Davie, Madison, Nash, Person, Randolph, and Scotland Counties."
Section 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 13th day of July, 1999.

s/	Dennis A. Wicker
President of the Senate

s/	James B. Black
Speaker of the House of Representatives