A BILL TO BE ENTITLED
AN ACT to increase haywood county's authority to levy an occupancy tax and to make other administrative changes.
The General Assembly of North Carolina enacts:
SECTION 1.  Part V of Chapter 908 of the 1983 Session Laws, as amended by Chapter 942 of the 1985 Session Laws (Regular Session 1986), Chapter 48 of the 1987 Session Laws, Chapter 540 of the 1995 Session Laws, and S.L. 2007‑337, reads as rewritten:
"Part V. Haywood Occupancy Tax.
"Sec. 10. Occupancy Tax. (a)  Authorization and Scope. – The Haywood County Board of Commissioners may levy a room occupancy and tourism development tax of up to six percent (6%) of the gross receipts derived from the rental of an accommodation within the county 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.
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"Sec. 12. Administration. – A tax levied under this Part shall be levied, administered, collected, and repealed as provided in G.S. 153A‑155.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 Part.
"Sec. 13. Repealed by S.L. 2007‑337.
"Sec. 14. Distribution and Use of Tax Revenue. – Haywood County shall, on a quarterly basis, remit the net proceeds of the room occupancy and tourism development tax to the Haywood County Tourism Development Authority. The Authority shall use two‑thirds of the funds to promote travel and tourism in the county and shall use one‑third of the funds for tourism‑related expenditures in the county.
The following definitions apply in this Part:
(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 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 Tourism Development Authority, are designed to increase the use of lodging facilities, meeting facilities, or convention facilities in a county or to attract tourists or business travelers to the county. The term includes tourism‑related capital expenditures.
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"Sec. 15. Tourism Development Authority. – (a) Appointment and Membership. – When the Haywood County Board of Commissioners adopts a resolution levying a room occupancy and tourism development tax pursuant to this Part, it shall also adopt a resolution creating the Haywood County Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide that the Authority is composed of the following eight members:
(1)	Two members who own or operate hotels, motels, or other accommodations with more than 20 rental units. Of these members, one member must be from the 28751, 28785, or 28786 zip code, and one member must be from the 28716, 28721, or 28745 zip code.
(2)	Two members who own or operate hotels, motels, or other accommodations with 20 or fewer rental units. Of these members, one member must be from the 28751, 28785, or 28786 zip code, and one member must be from the 28716, 28721, or 28745 zip code.
(3)	Two members who own or operate a tourism‑related business, including, but not limited to, county attractions, resorts, restaurants, gift shops, and concert venues. Of these members, one member must be from the 28751, 28785, or 28786 zip code, and one member must be from the 28716, 28721, or 28745 zip code.
	
(4)	
A member of the Haywood County Board of Commissioners.
(5)	One ex officio, nonvoting member, who shall be the Haywood County finance officer.
	
All members of the Authority shall be appointed by the Haywood County Board of Commissioners. The resolution shall also provide for the members' terms of office and for the filling of vacancies on the Authority. At least one‑third of the members must be individuals affiliated with businesses that collect the tax in the county, and at least one‑half of the members must be individuals currently active in the promotion of travel and tourism in the county. The 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.
The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The finance officer of Haywood County shall be the ex officio finance officer of the Authority.
(b1)	Duties. – The Authority shall expend the net proceeds of the tax levied under this Part for promoting travel and tourism and for tourism‑related expenditures as provided in this Part.
(c)	Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Board of Commissioners on its receipts and disbursements for the preceding quarter and for the year in such detail as the Board may require."
SECTION 2.  This act is effective when it becomes law. When the Haywood County Board of Commissioners adopts a resolution levying an increase of the room occupancy tax as authorized under this act, it shall adopt a resolution modifying the composition of the Haywood County Tourism Development Authority in accordance with this act.