GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 665

Short Title:  Modify Currituck Room Tax.	(Local)

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Sponsors: Representative Owens.

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Referred to:  Finance.

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March 29, 1999

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE CURRITUCK COUNTY ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX.
The General Assembly of North Carolina enacts:
Section 1.  Section 1 of Chapter 209 of the 1987 Session Laws, as amended by Chapter 155 of the 1991 Session Laws, reads as rewritten:
"Section 1.  Occupancy tax.  (a)	Authorization and scope.  The Currituck 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 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. 105-164.4(a)(3), or from the rental of a campsite within the county.  This tax is in addition to any State or local sales tax.  This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
(a1)	Additional occupancy tax.  In addition to the tax authorized by subsection (a) of this section, the Currituck County Board of Commissioners may levy a room occupancy tax of one percent (1%) of the gross receipts derived from the rental of accommodations taxable under subsection (a).  The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this act.  Currituck County may not levy a tax under this subsection unless it also levies the tax under subsection (a).
(b)	A tax levied under this act shall be levied, administered, collected, and repealed as provided in G.S. 153A-155.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 do not apply to a tax levied under this section.
	(d)	Penalties.  Except as otherwise provided by law, the following penalties apply:
(1)	Failure to File. – A person, firm, corporation, or association who fails or refuses to file the return required by this section is liable for a penalty of ten dollars ($10.00) for each day's omission.  This penalty does not apply, however, if the return is filed within 10 business days after its due date or if no tax is due with the return.  The penalty begins with the 11th business day after the return's due date and may not exceed twenty-five percent (25%) of the tax due with the return.
(2)	Failure to Collect Tax or Pay Tax When Due. – In case of failure to collect the tax or to pay the tax by the end of the calendar month in which it is due, there shall be an additional tax, as a penalty, of two percent (2%) of the tax due in addition to any other penalty.  If the tax remains unpaid on the first day of the second calendar month after it is due, there shall be an additional tax, as a penalty, of two percent (2%) of the tax for each calendar month or fraction thereof until the tax is paid.
(3)	Willful Failure to Collect or Pay Over Tax. – The penalties of G.S. 105-236(8) for willful failure to collect or pay over tax apply to the tax levied in this section.
(4)	Penalty for Bad Checks. – The penalties of G.S. 105-236(1) for bad checks apply to the tax levied in this section.
(5)	Criminal Penalties. – Any person who willfully attempts in any manner to evade a tax imposed under this section or who willfully fails to pay the tax or make and file a return shall, in addition to all other penalties provided by law, be guilty of a misdemeanor and shall be punishable by a fine not to exceed one thousand dollars ($1,000), imprisonment not to exceed six months, or both.
(6)	Postmark. – The provisions of G.S. 105-360(d) apply for the purpose computing penalties under this section.
(7)	Forgiveness. – The Board of Commissioners may, for good cause shown, compromise or forgive the tax penalties imposed by this subsection.
(e)	Use of tax revenue.  Currituck County shall use at least seventy-five percent (75%) of the net proceeds of the tax levied under subsection (a) of this section only for tourist related purposes, including construction and maintenance of public facilities and buildings, garbage, refuse, and solid waste collection and disposal, police protection, and emergency services.  The remainder of the net proceeds of the tax levied under subsection (a) shall be deposited in the Currituck County General Fund and may be used for any lawful purpose.  Currituck County may use the net proceeds of the tax levied under subsection (a1) of this section, to the extent that they are needed, for capital costs, operation, and maintenance of the Currituck Wildlife Museum.  Whatever is not needed for the capital costs, operation, and maintenance of the Currituck Wildlife Museum shall be used for tourist-related purposes.  As used in this subsection, 'net proceeds' means gross proceeds less the cost to the county of administering and collecting the tax, as determined by the finance officer.
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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, Currituck, Davie, Madison, Nash, Person, Randolph, and Scotland Counties."
Section 3.  This act is effective when it becomes law.