Beaufort Dist. B Occupancy Tax.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 803

Short Title: Beaufort Dist. B Occupancy Tax. (Local)
Sponsors: Senator Brinson (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 22, 2026
*S803-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE BEAUFORT COUNTY TO LEVY AN OCCUPANCY TAX IN A 2
TAX DISTRICT COMPRIS ING ALL AREAS OF THE COUNTY OTHER THAN T HE 3
INCORPORATED AREA IN THE CITY OF WASHINGTON. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. Beaufort County District B Created. – Beaufort County District B is 6
created as a taxing district. Its jurisdiction consists of that part of Beaufort County that is located 7
outside of the incorporated area of the City of Washington. Beaufort County District B is a body 8
politic and corporate and has the power to carry out the provisions of this act. The Beaufort 9
County Board of Commissioners shall serve ex officio as the governing body of the district, and 10
the officers of the county shall serve as the officers of the governing body of the district. A simple 11
majority of the governing body constitutes a quorum, and approval by a majority of those present 12
is sufficient to determine any matter before the governing body, if a quorum is present. 13
SECTION 2. Authorization and Scope. – The governing body of Beaufort County 14
District B may levy a room occupancy tax of up to six percent (6%) of the gross receipts derived 15
from the rental of an accommodation within the district that is subject to sales tax imposed by 16
the State under G.S. 105-164.4(a)(3). This tax is in addition to any State or local sales tax. 17
SECTION 3. Administration. – A tax levied under this act shall be levied, 18
administered, collected, and repealed as provided in G.S. 153A-155 as if Beaufort County 19
District B were a county. The penalties provided in G.S. 153A-155 apply to a tax levied under 20
this act. 21
SECTION 4. Distribution and Use of Tax Revenue. – Beaufort County District B 22
shall, on a quarterly basis, distribute the net proceeds of the occupancy tax to the Beaufort County 23
District B Tourism Development Authority created pursuant to Section 5 of this act. The 24
Authority shall use at least two -thirds of the funds to promote travel and tourism and shall use 25
the remainder for tourism -related expenditure s in the district. In accordance with the North 26
Carolina Constitution and the United States Constitution, the tax proceeds may be used only for 27
the direct benefit of the jurisdiction of Beaufort County District B. None of the proceeds may be 28
used to promote travel or tourism in areas within Beaufort County that are outside of the district 29
or for tourism-related expenditures in the county that are outside of the district. 30
The following definitions apply in this act: 31
(1) Net proceeds. – Gross proceeds less th e cost to the county of administering 32
and collecting the tax, as determined by the finance officer, not to exceed three 33
percent (3%) of the first five hundred thousand dollars ($500,000) of gross 34
proceeds collected each year and one percent (1%) of the rem aining gross 35
receipts collected each year. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 803-First Edition
(2) Promote travel and tourism. – To advertise or market an area or activity, 1
publish and distribute pamphlets and other materials, conduct market research, 2
or engage in similar promotional activities that attract tourists or business 3
travelers to the area. The term includes administrative expenses incurred in 4
engaging in the listed activities. 5
(3) Tourism-related expenditures. – Expenditures that, in the judgment of the 6
Tourism Development Authority, are designed to increase the use of 7
accommodations, meeting facilities, or convention facilities in a county or to 8
attract tourists or business travelers to the county. The term includes 9
tourism-related capital expenditures. 10
SECTION 5.(a) Beaufort County District B To urism Development Authority. – 11
Appointment and Membership. – When the Beaufort County Board of Commissioners adopts a 12
resolution levying a room occupancy tax under this act, it shall also adopt a resolution creating 13
the Beaufort County District B Tourism D evelopment Authority, which shall be a public 14
authority under the Local Government Budget and Fiscal Control Act. The resolution shall 15
provide for the membership of the Authority, including the members' terms of office, and for the 16
filling of vacancies on the Authority. At least one-third of the members must be individuals who 17
are affiliated with businesses that collect the tax in the district, and at least one -half of the 18
members must be individuals who are currently active in the promotion of travel and t ourism in 19
the district. The board of commissioners shall designate one member of the Authority as chair 20
and shall determine the compensation, if any, to be paid to members of the Authority. 21
The Authority shall meet at the call of the chair and shall adopt rules of procedure to 22
govern its meetings. The Finance Officer for Beaufort County shall be the ex officio finance 23
officer of the Authority. 24
SECTION 5.(b) Duties. – The Authority shall expend the net proceeds of the tax 25
levied under this act for promoting travel and tourism and for tourism -related expenditures as 26
provided in this act. 27
SECTION 5.(c) Reports. – The Authority shall report quarterly and at the close of 28
the fiscal year to the Beaufort County Board of Commissioners on its receipts and expenditu res 29
for the preceding quarter and for the year in such detail as the board may require. 30
SECTION 6. G.S. 153A-155(g) reads as rewritten: 31
"(g) Applicability. – Subsection (c) of this section applies to all counties and county 32
districts that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of 33
a local act, subsection (c) supersedes that provision. The remainder of this section applies only 34
to Alleghany, Anson, Bertie, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret, 35
Caswell, Chatham, Cherokee, Chowan, Clay, Craven, Cumberland, Currituck, Dare, Davie, 36
Duplin, Durham, Edgecombe, Forsyth, Franklin, Graham, Granville, Halifax, Haywood, 37
Henderson, Jackson, Madison, Martin, McDowell, Mitchell, Montgomery, Moore, Nash, New 38
Hanover, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, 39
Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Stokes, Swain, Transylvania, 40
Tyrrell, Union, Vance, Warren, Washington, Wayne, Wilson, and Yancey Counties, to Avery 41
County District A, Beaufort County District B, Graham County District G, Harnett County 42
District H, Iredell County District I, New Hanover County District U, Pender County District P, 43
Surry County District S, Watauga County District U, Wilkes County District W, Yadkin County 44
District Y, and the Township of Averasboro in Harnett County and the Ocracoke Township 45
Taxing District." 46
SECTION 7. This act is effective when it becomes law. 47