AN ACT to authorize the town of bryson city to levy a room occupancy tax and to merge the swain county and bryson city tourism development authorities into one.

The General Assembly of North Carolina enacts:

SECTION 1.  Occupancy tax. – (a) Authorization and Scope. – The Bryson City Board of Aldermen may levy a room occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of an accommodation 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.

SECTION 1.(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 – A tax levied under this section shall be levied, administered, collected, and repealed as provided in G.S. 160A‑215.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.

SECTION 1.(c)  Distribution and Use of Tax Revenue. – The Town of Bryson City shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Bryson City/Swain County Tourism Development Authority. The Authority shall use the net proceeds of the occupancy tax in accordance with Section 1(e) of Chapter 923 of the 1985 Session Laws, as amended by Section 1 of S.L. 2007‑23 and by Section 3 of this act. The term net proceeds means the 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 proceeds collected each year.

SECTION 1.(d)  Joint County‑City Tourism Development Authority. – Appointment and Membership. – When the board of aldermen adopts a resolution levying a room occupancy tax under this section, it shall notify Swain County and the Swain County Tourism Development Authority of the levy. The board of aldermen shall also adopt a resolution appointing members to the Bryson City/Swain County Tourism Development Authority upon its creation pursuant to Section 2 of Chapter 923 of the 1985 Session Laws, as amended by Section 1 of S.L. 2007‑23 and by Section 4 of this act.

SECTION 1.(e)  Duties. – The Authority shall expend the net proceeds of the tax levied under this section for the purposes provided in subsection (c) of this section. With respect to the funds in the Bryson City Proceeds Account, the Authority shall promote travel, tourism, and conventions in the town, sponsor tourist‑related events and activities in the town, and finance tourist‑related capital projects in the town.

SECTION 1.(f)  Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Bryson City Board of Aldermen on its receipts and expenditures for the preceding quarter and for the year in such detail as the Bryson City Board of Aldermen may require.

SECTION 2.  G.S. 160A‑215(g) reads as rewritten:

(g)      Applicability. – Subsection (c) of this section applies to all cities that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection (c) supersedes that provision. The remainder of this section applies only to Beech Mountain District W, to the Cities of Belmont, Conover, Eden, Elizabeth City, Gastonia, Goldsboro, Greensboro, Hickory, High Point, Jacksonville, Kings Mountain, Lake Santeetlah, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Monroe, Mount Airy, Mount Holly, Reidsville, Roanoke Rapids, Salisbury, Sanford, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing Rock, Boiling Springs, Boone, Bryson City, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Selma, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, Yanceyville, to the municipalities in Avery and Brunswick Counties, and to Saluda District D.

SECTION 3.  Section 1(e) of Chapter 923 of the 1985 Session Laws, as amended by Section 1 of S.L. 2007‑23, reads as rewritten:

(e)      Distribution and Use of Tax Revenue. – Swain County shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Swain Bryson City/Swain County Tourism Development Authority. The Authority shall use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in Swain County and shall use the remainder for tourism‑related expenditures.segregate the occupancy tax funds it receives from Swain County and Bryson City into two separate accounts. The net proceeds of the occupancy tax levied by Swain County shall be credited to a Swain County Proceeds Account, and the net proceeds of the occupancy tax levied by Bryson City shall be credited to a Bryson City Proceeds Account. The Authority shall use at least two‑thirds of the funds in the Swain County Proceeds Account to promote travel and tourism in Swain County and shall use the remainder for tourism‑related expenditures. The Authority shall use at least two‑thirds of the funds in the Bryson City Proceeds Account to promote travel and tourism in Bryson City and shall use the remainder for tourism‑related expenditures.

The following definitions apply in this subsection:

(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 first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross proceeds 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 Swain the Bryson City/Swain County Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in the county respective jurisdictions or to attract tourists or business travelers to the county. respective jurisdictions. The term includes tourism‑related capital expenditures.

SECTION 4.  Section 2 of Chapter 923 of the 1985 Session Laws, as amended by Section 1 of S.L. 2007‑23, reads as rewritten:

Sec. 2. Joint County‑City Tourism Development Authority. – (a) Appointment and Membership. – When the board of commissioners Bryson City Board of Aldermen adopts a resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating a county Tourism Development Authority, tax, then as soon as practicable, upon receipt of notification of the resolution from the Bryson City Board of Aldermen, the Swain County Board of Commissioners shall adopt a resolution converting the Swain County Tourism Development Authority to the Bryson City/Swain County Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The county shall, upon its creation, transfer to the Bryson City/Swain County Tourism Development Authority all of the assets of the Swain County Tourism Development Authority. 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. The Bryson City/Swain County Authority shall consist of the following nine members:

(1)        Two members appointed by the Swain County Board of Commissioners, one of whom must be an individual affiliated with a business that collects taxes in the county and another who must be an individual currently active in the promotion of travel and tourism in the county.

(2)        Two members appointed by the Bryson City Board of Aldermen, one of whom must be an individual affiliated with a business that collects taxes in Bryson City and another who must be an individual currently active in the promotion of travel and tourism in Bryson City.

(3)        The director of the Swain County Chamber of Commerce shall be a member of the Authority.

(4)        Two nonvoting advisory members appointed by the Swain County Board of Commissioners.

(5)        Two nonvoting advisory members appointed by the Bryson City Board of Aldermen.

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 chair of the Authority shall be elected by the members of the Authority. The board of commissioners shall designate one member of the Authority as chair and Swain County Board of Commissioners and the Bryson City Board of Aldermen 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 of Swain County 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 With respect to the funds in the Swain County Proceeds Account, the Authority shall promote travel, tourism, and conventions in Swain 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 board of county commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require.

SECTION 5.  Sections 3 and 4 of this act become effective upon the notification by the Bryson City Board of Aldermen to Swain County and the Swain County Tourism Development Authority of the levy of the tax authorized in Section 1 of this act and expire upon repeal of the tax authorized in Section 1 of this act. The remainder of this act is effective when it becomes law.