Richlands Occupancy Tax Authorization.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 73

Short Title: Richlands Occupancy Tax Authorization. (Local)
Sponsors: Senator Lazzara (Primary Sponsor).
Referred to: Rules and Operations of the Senate
February 12, 2025
*S73-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE THE TOWN OF RICHLAND S TO LEVY AN OCCUPAN CY 2
TAX. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Occupancy Tax. – (a) Authorization and Scope. – The Board of 5
Aldermen of the Town of Richlands may levy a room occupancy tax of up to three percent (3%) 6
of the gross receipts derived from the rental of an accommodation within the city that is subject 7
to sales tax imposed by the State under G.S. 105-164.4(a)(3). This tax is in addition to any State 8
or local sales tax. 9
SECTION 1.(b) Administration. – A tax levied under this section shall be levied, 10
administered, collected, and repealed as provided in G.S. 160A-215. The penalties provided in 11
G.S. 160A-215 apply to a tax levied under this section. 12
SECTION 1.(c) Distribution and Use of Tax Revenue. – The Town of Richlands 13
shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Town of Richlands 14
Tourism Development Authority. The Authority shall use at least two -thirds of the funds to 15
promote travel and tourism and shall use the remainder for tourism -related expenditures in the 16
city. 17
The following definitions apply in this subsection: 18
(1) Net proceeds. – Gross proceeds less the cost to the city of administering and 19
collecting the tax, as determined by the finance officer, not to exceed three 20
percent (3%) of the first five hundred thousand dollars ($500,000) of gross 21
proceeds collected eac h year and one percent (1%) of the remaining gross 22
receipts collected each year. 23
(2) Promote travel and tourism. – To advertise or market an area or activity, 24
publish and distribute pamphlets and other materials, conduct market research, 25
or engage in simil ar promotional activities that attract tourists or business 26
travelers to the area. The term includes administrative expenses incurred in 27
engaging in the listed activities. 28
(3) Tourism-related expenditures. – Expenditures that, in the judgment of the 29
Tourism Development Authority, are designed to increase the use of 30
accommodations, meeting facilities, or convention facilities in the city or to 31
attract tourists or business travelers to the city. The term includes 32
tourism-related capital expenditures. 33
SECTION 2. Tourism Development Authority. – (a) Appointment and Membership. 34
– When the Board of Aldermen of the Town of Richlands adopts a resolution levying a room 35
occupancy tax under this act, it shall also adopt a resolution creating a city Tourism Development 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 73-First Edition
Authority, which shall be a public authority under the Local Government Budget and Fiscal 1
Control Act. The resolution shall provide for the membership of the Authority, including the 2
members' terms of office, and for the filling of vacancies on the Author ity. At least one-third of 3
the members shall be individuals who are affiliated with businesses that collect the tax in the city, 4
and at least one -half of the members shall be individuals who are currently active in the 5
promotion of travel and tourism in th e city. The Board of Aldermen of the Town of Richlands 6
shall designate one member of the Authority as chair and shall determine the compensation, if 7
any, to be paid to members of the Authority. 8
The Authority shall meet at the call of the chair and shall adopt rules of procedure to 9
govern its meetings. The finance officer for the Town of Richlands shall be the ex officio finance 10
officer of the Authority. 11
SECTION 2.(b) Duties. – The Authority shall expend the net proceeds of the tax 12
levied under this act for promoting travel and tourism and for tourism -related expenditures as 13
provided in this act. 14
SECTION 2.(c) Reports. – The Authority shall report quarterly and at the close of 15
the fiscal year to the Board of Aldermen of the Town of Richlands on its receipts and expenditures 16
for the preceding quarter and for the year in such detail as the Board of Aldermen may require. 17
SECTION 3. G.S. 160A-215(g) reads as rewritten: 18
"(g) Applicability. – Subsection (c) of this section applies to all cities that levy an 19
occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection 20
(c) supersedes that provision. The remainder of this section applies only to Beech Mountain 21
District W, to the Cities of Belmont, Burlington, Conover, Eden, Eliz abeth City, Gastonia, 22
Goldsboro, Graham, Greensboro, Hickory, High Point, Indian Trail, Jacksonville, Kings 23
Mountain, Lake Santeetlah, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Mebane, 24
Monroe, Mount Airy, Mount Holly, Reidsville, Roanoke Rapids, Sa lisbury, Sanford, Shelby, 25
Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, 26
Bermuda Run, Blowing Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, 27
Cooleemee, Cramerton, Dallas, Dobson, Elkin, Elon, Fontana Dam, Four Oaks, Franklin, Grover, 28
Hillsborough, Jefferson, Jonesville, Kenly, Kure Beach, Lansing, Leland, McAdenville, 29
Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, 30
Richlands, Robbinsville, Selma, Smithfield, St. James, St. Pauls, Swansboro, Troutman, Tryon, 31
West Jefferson, Wrightsville Beach, Yadkinville, Yanceyville, to the municipalities in Avery and 32
Brunswick Counties, to Clayton District C, Saluda District D, and Stallings District S." 33
SECTION 4. This act is effective when it becomes law. 34