Swannanoa Valley TDA.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 132

Short Title: Swannanoa Valley TDA. (Local)
Sponsors: Senators Daniel, Mayfield, and Moffitt (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 24, 2025
*S132-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE THE CREATION OF THE SWANNANOA VALLEY TOURISM 2
DEVELOPMENT AUTHORITY. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Part VI of Chapter 908 of the 1983 Session Laws, as amended by 5
Section 1 of Chapter 942 of the 1985 Session Laws, S.L. 2021 -162, Section 60(a) of S.L. 6
2013-414, Section 8 of S.L. 2015-128, and Section 3.1 of S.L. 2022-40, reads as rewritten: 7
"PART VI. BUNCOMBE OCCUPANCY TAX. 8
"Sec. 17. Authorization and Scope. – (a) The Board of Commissioners of Buncombe County 9
may levy a room occupancy and tourism development tax of up to two percent (2%) of the gross 10
receipts derived from the rental of accommodations within the county that are subject to sales tax 11
imposed by the State under G.S. 105-164.4(a)(3). 12
"Sec. 18. Repealed. 13
"Sec. 19. Administration of Tax. – A tax levied under this act shall be levied, administered, 14
collected, and repealed as provided in G.S. 153A-155. The penalties provided in G.S. 153A-155 15
apply to a tax levied under this act. 16
"Sec. 20. Repealed. 17
"Sec. 21. Disposition of Taxes Collected. – (a) Buncombe County shall shall, on a quarterly 18
basis, remit the net proceeds of the occupancy tax collected from the areas collectively consisting 19
of, and legally denoted as, the Buncombe County Townships of (i) Broad River (28), (ii) Black 20
Mountain (25), and (iii) Swannanoa (21), and hereinafter collectively referred to as the "district," 21
to the Swannanoa Vall ey Tourism Development Authority to be used for purposes consistent 22
with Section 24 of this act. Buncombe County shall remit the remainder of the net proceeds of 23
the occupancy tax collected to the county Buncombe County Tourism Development Authority 24
in Buncombe County. to be used for purposes consistent with this section. "Net proceeds" means 25
gross proceeds less the cost to the county of administering and collecting the tax, not to exceed 26
five percent (5%) of the gross proceeds collected each year. 27
(b) The Buncombe County Tourism Development Authority may expend any funds 28
remitted to it pursuant to subsection (a) of this section only as follows: 29
(1) Two-thirds of the funds shall be used only (i) to further the development of 30
travel, tourism, meetings and events in the county through marketing, 31
advertising, sales, and promotion and (ii) for the administrative expenses of 32
the Authority, not to exceed twenty percent (20%) of the net proceeds for the 33
applicable fiscal year of the Authority. For purposes of thi s provision, 34
administrative expenses shall include expenses of the Authority for salaries, 35
benefits, operations, and facilities. 36
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Page 2 Senate Bill 132-First Edition
(2) The remainder shall be split evenly between the following funds created by 1
the Authority, with no portion of the remainder being used for operational 2
expenses: 3
a. The Tourism Product Development Fund. The Authority shall use 4
monies in the Fund to provide financial assistance for major tourism 5
projects in order to increase patronage of lodging facilities in, and 6
further economic development in, Buncombe County. 7
b. The Legacy Investment From Tourism Fund. The Authority shall use 8
monies in the Fund to provide financial assistance for tourism-related 9
projects that are designed to (i) increase patronage of lodging facilities, 10
meeting facilities, and convention facilities by attracting tourists, 11
business travelers, or both and (ii) benefit the community at large in 12
Buncombe County. 13
(c) The Buncombe County Tourism Development Authority shall administer and spend 14
the funds in the Tourism Product Development Fund as follows: 15
(1) The Authority shall create a Product Development Committee to review and 16
evaluate proposals from applicants for tourism capital projects, including 17
capital maintenance. No proceeds may be used for operational expenses. The 18
Product Development Committee shall make recommendations to the 19
Authority regarding use and disposition of funds derived from the Tourism 20
Product Development Fund. A for-profit entity is not eligible to receive funds 21
or loans from the Tourism Pro duct Development Fund. Only upon 22
recommendation of the Product Development Committee, and upon a vote of 23
three-fourths of the current voting members of the Authority to expend such 24
funds, the Authority may award funds to qualified projects in the form of 25
outright grants of money and may guarantee loans and participate in pledges 26
of debt service for these projects; provided, however, that no loan guarantee 27
may exceed the amount committed from the Fund for the project. Projects 28
must be located in Buncombe County unless the Commissioners of Buncombe 29
County give specific approval to projects outside the county. Applicants must 30
provide a feasibility study satisfactory to the Product Development 31
Committee demonstrating the project's economic value to the area and the 32
number of estimated new room nights the project will generate. 33
(2) To be a qualified project, a project must be expected to increase patronage of 34
lodging facilities in Buncombe County. 35
(3) The Authority is not required to exhaust all of the funds gener ated each year 36
and may accumulate money in order to create a revolving fund to further the 37
purposes of this section. The Authority may not commit, for purposes of debt 38
service, a portion of the net funds in excess of thirty -three percent (33%) of 39
the average net funds received over a rolling three -year average for a period 40
of time in excess of 15 years for any one project. The Authority shall not be 41
the sole funding source for any debt service. 42
(4) The Product Development Committee need not be comprised sol ely of 43
members of the Authority. A majority of the members of the Product 44
Development Committee must be persons who are owners or operators of 45
hotels, motels, or bed and breakfasts. 46
(d) The Buncombe County Tourism Development Authority shall administer and spend 47
the funds in the Legacy Investment From Tourism Fund as follows: 48
(1) The Authority shall create a Legacy Investment From Tourism Committee to 49
review and evaluate proposals from applicants for tourism -related capital 50
projects, including capital maint enance, and project administration, design, 51
General Assembly Of North Carolina Session 2025
Senate Bill 132-First Edition Page 3
restoration, maintenance, and rehabilitation as well as enhancement of natural 1
resources and expansion of necessary infrastructure. The Legacy Investment 2
From Tourism Committee shall make recommendations to the A uthority 3
regarding use and disposition of funds derived from the Legacy Investment 4
From Tourism Fund. A for-profit entity is not eligible to receive funds or loans 5
from the Legacy Investment From Tourism Fund. The Legacy Investment 6
From Tourism Fund cannot be used for operational expenses. Only upon 7
recommendation of the Legacy Investment From Tourism Committee, and 8
upon a vote of three-fourths of the current voting members of the Authority to 9
expend such funds, the Authority may award funds to qualified projects in the 10
form of outright grants of money and may guarantee loans and participate in 11
pledges of debt service for these projects; provided, however, that no loan 12
guarantee may exceed the amount committed from the Fund for the project. 13
Projects must be located in Buncombe County unless the Commissioners of 14
Buncombe County give specific approval to projects outside the county. 15
Applicants must provide information as to how the project balances visitor 16
and resident needs as part of the application process for a Legacy Investment 17
From Tourism Fund project. 18
(2) To be a qualified project, a project must be expected to (i) increase patronage 19
of lodging facilities, meeting facilities, and convention facilities by attracting 20
tourists, business travelers, or both and (ii) benefit the community at large in 21
Buncombe County. 22
(3) The Authority is not required to exhaust all of the funds generated each year 23
and may accumulate money in order to create a revolving fund to further the 24
purposes of this section. The Authority may not commit for purposes of debt 25
service a portion of the net funds in excess of thirty-three percent (33%) of the 26
average net funds received over a rolling three -year average for a period of 27
time in excess of 15 years for any one project. The Authorit y shall not be the 28
sole funding source for any debt service. 29
(4) The Legacy Investment From Tourism Committee need not be comprised 30
solely of members of the Authority. A majority of the members of the Legacy 31
Investment From Tourism Committee must be person s who are owners or 32
operators of hotels, motels, or bed and breakfasts. 33
"Sec. 22. Appointment, Duties of the Buncombe County Tourism Development Authority. – 34
(a) When the board of county commissioners adopts a resolution levying a room occupancy tax 35
pursuant to this Part, it shall also adopt a resolution creating a county Tourism Development 36
Authority, which shall be a public authority under the Local Government Budget and Fiscal 37
Control Act and shall be composed of the following 11 members: 38
(1) A cou nty commissioner appointed by the Buncombe County Board of 39
Commissioners, who shall serve as an ex officio, nonvoting member; 40
(2) A member of the Asheville City Council appointed by the Asheville City 41
Council, who shall serve as an ex officio, nonvoting member; 42
(3) Six owners or operators of hotels, motels, bed and breakfasts, or vacation 43
rental management companies, four of which own or operate hotels, motels, 44
or bed and breakfasts, with more than 100 rental units, two of whom shall be 45
appointed by the Ash eville City Council and two by the Buncombe County 46
Board of Commissioners; and one of which owns or operates hotels, motels, 47
bed and breakfasts, or vacation rental management companies, with 100 or 48
fewer rental units, who shall be appointed by the Asheville City Council; and 49
one of which owns or operates hotels, motels, or bed and breakfasts with 100 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 132-First Edition
or fewer rental units, who shall be appointed by the Buncombe County Board 1
of Commissioners. 2
(4) Three individuals actively involved in the tourist business wh o have 3
participated in tourism promotion, appointed as follows: one vacation rental 4
owner or vacation rental management company owner appointed by the 5
Buncombe County Board of Commissioners; one executive from a ticketed 6
tourist attraction appointed by the Asheville Area Chamber of Commerce; and 7
one restaurant owner, owner of a brewery, distillery, or winery open for tours 8
or tastings, or executive director of a ticketed arts organization appointed by 9
the Asheville City Council. 10
All members of the Authority shall serve without compensation. Vacancies in the Authority shall 11
be filled by the appointing authority of the member creating the vacancy. Members appointed to 12
fill vacancies shall serve for the remainder of the unexpired term for which they are appointed to 13
fill. Members shall serve three -year terms and may serve no more than two consecutive terms. 14
The members shall elect a chair, who shall serve for a term of two years. The Authority shall 15
meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The finance 16
officer for Buncombe County shall be the ex officio finance officer of the Authority. 17
(b) The Buncombe County Tourism Development Authority may contract with any 18
person, firm, or agency to advise and assist it in the promotion of travel, tourism, and conventions 19
and may recommend to the board of county commissioners that county staff be employed for this 20
advice and assistance. Any county staff employed under this Part shall be hired and supervised 21
by the Tourism Development Authority, which shall pay the salaries and expenses of this staff. 22
(c) The Buncombe County Tourism Development Authority shall report quarterly and at 23
the close of the fiscal year to the board of county commissioners on its receipts and expenditures 24
for the preceding quarter and for the year in such detail as the board may require. 25
(d) The following definitions apply in this section: 26
(1) Vacation rental management company. – A corporate entity having at least 27
five rental units that are available for rent in Buncombe County for more than 28
sixty percent (60%) of the days in the calendar year. 29
(2) Vacation rental management company owner. – The owner of a corporate 30
entity having at least five rental units that are available for rent in Buncombe 31
County for more than sixty percent (60%) of the days in the calendar year. 32
(3) Vacation rental owner. – The owner of at least one vacation rental unit in 33
Buncombe County, registered in compliance with all local and State laws, that 34
is available for rent for more than sixty percent (60%) of the days in the 35
calendar year. 36
"Sec. 23. Repealed. 37
"Sec. 23.1. First Additional Tax. – In addition to the tax authorized by Section 17 of this Part, 38
the Buncombe County Board of Commissioners may levy an additional room occupancy an d 39
tourism development tax of one percent (1%) of the gross receipts derived from the rental of 40
accommodations taxable under that section. The levy, collection, administration, and repeal of 41
the tax authorized by this section, and the use of tax revenue from a tax levied under this section, 42
shall be in accordance with Sections 17 through 22 and Section 24 of this Part. Buncombe County 43
may not levy a tax under this section unless it also levies a tax under Section 17 of this Part. 44
"Sec. 23.2. Second Additiona l Tax. – In addition to the tax authorized by Sections 17 and 45
23.1 of this Part, the Buncombe County Board of Commissioners may levy an additional room 46
occupancy and tourism development tax of one percent (1%) of the gross receipts derived from 47
the rental of accommodations taxable under those sections. The levy, collection, administration, 48
and repeal of the tax authorized by this section, and the use of tax revenue from a tax levied under 49
this section, shall be in accordance with Sections 17 through 22 and Section 24 of this Part. 50
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Buncombe County may not levy a tax under this section unless it also levies the taxes under 1
Sections 17 and 23.1 of this Part. 2
"Sec. 23.3. Third Additional Occupancy Tax. – In addition to the tax authorized by Sections 3
17, 23.1, an d 23.2 of this Part, the Buncombe County Board of Commissioners may levy an 4
additional room occupancy and tourism development tax of two percent (2%) of the gross 5
receipts derived from the rental of accommodations taxable under those sections. The levy, 6
collection, administration, and repeal of the tax authorized by this section, and the use of tax 7
revenue from a tax levied under this section, shall be in accordance with Sections 17 through 22 8
and Section 24 of this Part. Buncombe County may not levy a tax under this section unless it also 9
levies the taxes under Sections 17, 23.1, and 23.2 of this Part. 10
"Sec. 24. Swannanoa Valley Tourism Development Authority. – (a) Use of Tax Revenue. – 11
The Swannanoa Valley Tourism Development Authority shall use at least two-thirds of the funds 12
distributed to it under Section 21 of this act to promote travel and tourism in the district and shall 13
use the remainder for tourism-related expenditures in the district. 14
The following definitions apply in this subsection: 15
(1) Promote travel and tourism. – To advertise or market an area or activity, 16
publish and distribute pamphlets and other materials, conduct market research, 17
or engage in similar promotional activities that attract tourists or business 18
travelers to the area. The term includes administrative expenses incurred in 19
engaging in the listed activities. 20
(2) Tourism-related expenditures. – Expenditures that, in the judgment of the 21
Tourism Development Authority, are designed to increase the use of 22
accommodations, meeting facilities, or convention facilities in the district, to 23
attract tourists or business travelers to the district, or to promote outdoor 24
adventure tourism within the district. The term includes tourism -related 25
capital expenditures that allow for restoration and development of 26
tourism-related infrastructure. 27
(b) Appointment and Membership. – The Swannanoa Valley Tourism Development 28
Authority shall be a public authority under the Local Government Budget and Fiscal Control Act. 29
The Buncombe County Board of Commissioners shall, by resolution, provide for the membership 30
of the Authority, including the members ' terms of office, and for the filling of vacancies on the 31
Authority. The Authority shall consist of a minimum of nine members. At least one-third of the 32
members shall be individuals who are affiliated with businesses that collect tax in the district, 33
and at least one -half of the members shall be individuals who are currently active in the 34
promotion of travel and tourism in the district. The Authority shall elect one member to serve as 35
chair of the Authority, and all members shall serve without compensation. 36
The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern 37
its meetings. The Finance Officer for Buncombe County shall be the ex officio finance officer of 38
the Authority. The Authority and the Buncombe County Board of Commissioners may each 39
appoint additional ex officio, nonvoting members who are representative of the district or county, 40
respectively, as necessary to promote the travel and tourism-related purposes of this act. 41
(c) Duties. – The Swannanoa Valley Tourism Development Authority shall expend the 42
net proceeds of the tax distributed to it under this act for promoting travel and tourism and for 43
tourism-related expenditures as provided in this section. 44
(d) Reports. – The Swannanoa Valley Tourism Development Authority shall report 45
quarterly and at the close of the fiscal year to the Buncombe County Board of Commissioners on 46
its receipts and expenditures for the preceding quarter and for the year in such detail as the Board 47
may require." 48
SECTION 2. Section 1 of this act (i) becomes effective only if the Buncombe County 49
Board of Commissio ners adopts a resolution creating the Swannanoa Valley Tourism 50
Development Authority and (ii) applies to the distribution and use of occupancy tax proceeds on 51
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 132-First Edition
the fiscal quarter following the first full fiscal quarter after the adoption of such resolution. The 1
remainder of this act is effective when it becomes law. 2