GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

H 1

HOUSE BILL 531

Short Title: Increase/Modify Goldsboro Occupancy Tax.		(Local)
Sponsors:	Representatives J. Bell, Dixon, and L. Bell (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site.
Referred to:	Finance.

April 2, 2015

A BILL TO BE ENTITLED

AN ACT to promote tourism, agriculture, and military relations in the city of goldsboro by modifying the goldsboro occupancy tax.

The General Assembly of North Carolina enacts:

SECTION 1. Sections 2 through 9 of Chapter 555 of the 1991 Session Laws, as amended by Section 1 of S.L. 1997‑447, Section 60(l) of S.L. 2013‑414, and Section 14.23 of S.L. 2014‑3, reads as rewritten:

"Sec. 2. Levy of Tax. The City of Goldsboro may levy a room occupancy and tourism development tax.

The room occupancy and tourism development tax that may be levied under this act shall not be less than three percent (3%) nor more than five percent (5%) of the gross receipts derived from the rental of any room, lodging, or similar accommodation furnished by ~~any~~ a hotel, motel, inn, ~~tourist camp,~~ or other similar place within the levying unit 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 State or local sales tax.

"Sec. 2A. Authorization of Additional Tax. – In addition to the tax authorized by subsection (a) of this section, the City of Goldsboro may levy an additional room occupancy tax of up to one percent (1%) of the gross receipts derived from the rental of accommodations taxable under subsection (a) of this section. The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section. The City of Goldsboro may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section at the rate of five percent (5%).

"Sec. 5. Administration of Tax. A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A‑215. The penalties provided in G.S. 160A‑215 apply to a tax levied under this section.

"Sec. 7. Disposition of Taxes Collected. (a) Feasibility Study. After levying a tax under this act, the City of Goldsboro shall place the net proceeds of the tax in a special fund. 'Net proceeds' means gross proceeds less the cost to the city of collecting and administering the tax. When sufficient proceeds have been accumulated in the special fund, the city council shall create a citizens' advisory committee to conduct a study of the feasibility of the construction of a civic center in Goldsboro. The citizens' advisory committee shall be composed of either five or seven members, as determined by the city council. If the committee is composed of five members, three shall be appointed by the city council and two shall be appointed by the Chamber of Commerce of Wayne County. If the committee is composed of seven members, four shall be appointed by the city council and three shall be appointed by the Chamber of Commerce of Wayne County. The city shall remit no more than twenty percent (20%) of the net proceeds of the tax levied under this act to the Goldsboro Tourism Council created in Section 8 of this act. The Council shall use the proceeds to develop tourism, support services, and tourist‑related events, and for any other appropriate activities to provide tourism‑related facilities and attractions. The citizens' advisory committee shall use the remainder of the net proceeds of the tax levied under this act for a study of the feasibility of the construction of a civic center in Goldsboro.

~~(b)~~ If Civic Center Feasible. If the Goldsboro City Council determines that the results of the feasibility study indicate that a civic center would be a viable alternative for the city, the proceeds of the tax levied under this act shall thereafter be used as provided in this subsection. The citizens' advisory committee created pursuant to subsection (a) of this section shall continue to serve in an advisory capacity to the Goldsboro City Council. The city shall remit no more than twenty percent (20%) of the net proceeds of the tax levied under this act to the Goldsboro Tourism Council created in Section 8 of this act. The Council shall use the proceeds to develop tourism, support services, and tourist‑related events, and for any other appropriate activities to provide tourism‑related facilities and attractions. The city shall use the remainder of the net proceeds for improving, leasing, constructing, financing, operating, or acquiring facilities and properties as needed to provide for a civic center facility for Goldsboro. The city may contract with any person, firm, or agency to assist it in carrying out the purposes provided in this subsection.

~~(c)~~ If Civic Center Not Feasible at Present. If the Goldsboro City Council determines that the results of the feasibility study indicate that a civic center would not be a viable alternative for the city at present or without the participation of other governmental, educational, or nonprofit entities, then the city may, on a monthly basis, remit up to fifty percent (50%) of the net proceeds of the tax to the Goldsboro Tourism Council created in Section 8 of this act. The Council shall use the proceeds to develop tourism, support services, and tourist‑related events, and for any other appropriate activities to provide tourism‑related facilities and attractions. The remaining net proceeds of the tax shall be invested in a special interest bearing fund and held by the city for improving, leasing, constructing, financing, operating, or acquiring facilities and properties, either by the city or in conjunction with other governmental, educational, or nonprofit entities. Thereafter, if the Goldsboro City Council determines that a civic center would be a viable alternative for the city, then a citizens' advisory committee shall be again created, if it has been disbanded, pursuant to subsection (a) of this section, and the provisions of subsection (b) of this section shall apply. Further, the citizens' advisory committee may conduct additional feasibility studies as it deems necessary. If the Goldsboro City Council later determines that a civic center would not be a viable alternative for the city, then the provisions of subsection (d) of this section shall apply.

~~(d)~~ If Civic Center Not Feasible. If the Goldsboro City Council determines that the results of the feasibility study indicate that a civic center would not be a viable alternative for the city, the proceeds of the tax levied under this act shall thereafter be used as provided in this subsection. The citizens' advisory committee created pursuant to subsection (a) of this section shall be disbanded. The city shall, on a monthly basis, remit the net proceeds of the tax to the Goldsboro Tourism Council created in Section 8 of this act. The Council shall use the proceeds to develop tourism, support services, and tourist‑related events, and for any other appropriate activities to provide tourism‑related facilities and attractions.

"Sec. 7A. Distribution and Use of Tax Revenue. – The City of Goldsboro shall, on a quarterly basis, remit the net proceeds of the occupancy tax levied under this section to the Goldsboro Tourism Development Authority. The Authority shall use at least one‑third of the funds remitted to it under this subsection to promote travel and tourism in the City of Goldsboro and shall use the remainder for tourism‑related expenditures.

The following definitions apply in this section:

(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 gross proceeds.

(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 county. The term includes administrative expenses incurred in engaging in the listed activities.

(3) Tourism‑related expenditures. – Expenditures that, in the judgment of the Authority, are designed to increase the use of lodging facilities in the county or to attract tourists or business travelers to the county. The term includes tourism‑related capital expenditures.

"Sec. 8. Goldsboro Tourism Council. (a) The Goldsboro City Council shall adopt a resolution creating a Goldsboro Tourism Council. The membership of the Goldsboro Tourism Council shall be appointed by the Goldsboro City Council as follows:

~~(1)~~ ~~Three owners or operators of hotels, motels, or other taxable accommodations in the City of Goldsboro.~~

~~(2)~~ ~~Three individuals who have demonstrated an interest in conventions and tourism development in the Goldsboro area, and who do not own or operate hotels, motels, or other taxable tourism accommodations~~

~~(3)~~ ~~Three ex officio members: the city manager, the executive vice‑president of the Chamber of Commerce of Wayne County, and the mayor of the City of Goldsboro.~~

~~(b)~~ All members of the Council shall serve without compensation. Travel expenses, as approved in the annual budget, may be provided by the Goldsboro Tourism Council. Vacancies in the Council shall be filled in the same manner as the original appointments. 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 which will be staggered as provided by the city council; members may serve no more than two consecutive three‑year terms. The members shall elect a chairperson and treasurer, who shall serve for a term of two years. The Council shall meet at the call of the chairperson and shall adopt rules of procedure to govern its meeting as provided by Robert's Rules of Order.

~~(c)~~ The Goldsboro Tourism Council may contract with any person, firm, or agency to assist it in carrying out the purposes provided in this act. The Council shall prepare an annual budget and shall report quarterly and at the close of the fiscal year to the Goldsboro City Council on its receipts and expenditures for the preceding quarter and year in such detail as the city may require. An audit will be conducted as part of the city's audit contract.

"Sec. 8A. Tourism Development Authority. (a) Appointment and Membership. – When the City Council adopts a resolution levying a room occupancy tax under subsection (a1) of Section 1 of this act, it shall also adopt a resolution creating the Goldsboro County Tourism Development Authority, which is a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide for the membership of the Authority, including the members' terms of office, and for the filling of vacancies on the Authority. At least one‑third of the members shall be individuals who are affiliated with businesses that collect the tax in the county and at least one‑half of the members shall be individuals who are currently active in the promotion of travel and tourism in the county. The City Council shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members 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 the City of Goldsboro shall be the ex officio finance officer of the Authority.

(b) Duties. – The Authority shall expend the net proceeds of the tax levied under this act for the purposes provided in Section 1 of this act. The Authority shall promote travel, tourism, and conventions in the county, sponsor tourist‑related events and activities in the county, and finance tourist‑related capital projects in the county.

(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Goldsboro City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the City Council may require.

"Sec. 10. The Goldsboro Tourism Council shall remit any proceeds of the tax authorized by this act to the Goldsboro Tourism Development Authority within 30 days of the creation of the Authority."

SECTION 2. Section 7A of Chapter 555 of the 1991 Session Laws, as amended by Section 1 of S.L. 1997‑447, Section 60(l) of S.L. 2013‑414, Section 14.23 of S.L. 2014‑3, and Section 1 of this act, reads as rewritten:

"Sec. 7A. Distribution and Use of Tax Revenue. – The City of Goldsboro shall, on a quarterly basis, remit the net proceeds of the occupancy tax levied under this section to the Goldsboro Tourism Development Authority. The Authority shall use at least ~~one‑third~~two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in the City of Goldsboro and shall use the remainder for tourism‑related expenditures.

The following definitions apply in this section:

(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 gross proceeds.

SECTION 3. Section 2 of this act becomes effective 20 years after this act becomes law. The remainder of this act is effective when it becomes law.