GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

HOUSE BILL 764
RATIFIED BILL

AN ACT TO AUTHORIZE THE TOWN OF MOORESVILLE TO LEVY AN ADDITIONAL ROOM OCCUPANCY AND TOURISM DEVELOPMENT TAX.

The General Assembly of North Carolina enacts:

Section 1.  Section 1 of Chapter 296 of the 1991 Session Laws, as amended by Section 4 of Chapter 577 of the 1991 Session Laws, reads as rewritten:
"Section 1.  Occupancy tax.  (a)	Authorization and scope.  The Mooresville Town Board of Commissioners may levy a room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the town that is subject to 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.  This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations.
(a1)	Authorization of additional tax.  In addition to the tax authorized by subsection (a) of this section, the Mooresville Town Board of Commissioners may levy an additional room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of accommodations taxable under subsection (a).  The total rate of tax levied under subsections (a) and (a1) of this section, when combined with the rate of room occupancy tax levied by Iredell County, may not exceed six percent (6%).  The levy, collection, administration, and repeal of the tax authorized by this subsection shall be in accordance with the provisions of this section.  The Town of Mooresville may not levy a tax under this subsection unless it also levies the tax authorized under subsection (a) of this section.
(b)	Administration.  A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A-215.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.
		(e)	Disposition of tax proceeds.  The Town of Mooresville " shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Mooresville Travel and Tourism Authority.  The Authority shall use at least seventy-five percent (75%) of the net proceeds of the occupancy tax to promote travel and tourism in Mooresville and shall use the remainder for tourism-related expenditures.
(f)	Definitions.  The following definitions apply in this section:
(1)	Net proceeds. – Gross proceeds less the cost to the town of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.
(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 area; 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, meeting facilities, or convention facilities in a town or to attract tourists or business travelers to the town.  The term includes tourism-related capital expenditures.
	."
Section 2.  Section 2 of Chapter 296 of the 1991 Session Laws reads as rewritten:
"Sec. 2.  Travel and Tourism Authority.  (a)	Appointment and membership.  After the Town of Mooresville adopts a resolution levying an occupancy tax under this act, it shall also adopt a resolution creating a Travel and Tourism Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act.  The membership of the Authority shall consist of:  two members representing the Mooresville-South Iredell Chamber of Commerce; two members representing the motel or travel and tourism industry; and one member of the Mooresville Town Board.  The resolution shall provide for terms of office, and for the filling of vacancies on the Authority.  The Mooresville Town Board shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority.  Members shall serve at the pleasure of the Mooresville Town Board.
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 Town of Mooresville 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 Greater Mooresville area; sponsor tourism related events and activities; and finance tourism related capital projects in the Greater Mooresville area.
(c)	Reports.  The Authority shall report at the close of the fiscal year to the Mooresville Town Board, or more often if required by said Board, on its receipts and expenditures for the preceding year in such detail as the Board may require."
Section 3.  Section 3 of S.L. 1997-410, as amended by Section 2 of S.L. 1997-447 and Section 4 of S.L. 1998-112, reads as rewritten:
"Section 3.  Municipal Administrative Provisions.  G.S. 160A-215, as enacted by S.L. 1997-361 and S.L. 1997-364, applies to the Cities of Goldsboro, Lumberton, Mount Airy, Shelby, and Statesville, to the Towns of Mooresville and St. Pauls, and to the municipalities in Brunswick County."
Section 4.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 8th day of July, 1999.

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	Dennis A. Wicker
	President of the Senate

	─────────────────── 
	James B. Black
				eaker of the House of Representatives