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Bill Summary · SB 803

Summary of SB 803 (Session 2025) – North Carolina

Title

Beaufort Dist. B Occupancy Tax (Local)

Purpose

authorize Beaufort County to establish a separate taxing district (District B) outside the incorporated City of Washington limits and levy a room occupancy tax within that district. The revenue is designated for tourism development and promotion, to be administered by a newly created Beaufort County District B Tourism Development Authority.

Key Provisions

1) Creation of Beaufort County District B

  • Establishes Beaufort County District B as a taxing district comprising all areas of Beaufort County not located in the City of Washington’s incorporated area.
  • Governing structure: Beaufort County Board of Commissioners serves ex officio as the district’s governing body; county officers serve as district officers.
  • Quorum and decisions: Simple majority of the governing body present constitutes a quorum; majority of those present approves measures, provided a quorum exists.

2) Authority to Levy Occupancy Tax

  • District B may levy a room occupancy tax of up to 6% of gross receipts from rentals of accommodations within the district that are subject to North Carolina state sales tax (G.S. 105-164.4(a)(3)).
  • The tax is in addition to existing state and local taxes.

3) Administration and Penalties

  • The occupancy tax is to be levied, administered, collected, and repealed under G.S. 153A-155 as if District B were a county.
  • Penalties applicable under G.S. 153A-155 apply to tax administration.

4) Distribution and Use of Revenue

  • Net proceeds (after administrative/collection costs) are distributed quarterly to the Beaufort County District B Tourism Development Authority.
  • The Authority must use at least two-thirds of net proceeds to promote travel and tourism; the remaining funds support other tourism-related expenditures within District B.
  • Proceeds may only be used for the district’s direct benefit and cannot fund tourism activities outside the District B jurisdiction or outside the district’s geographic area in Beaufort County.

Definitions in the Act

  • Net proceeds: Gross receipts minus administrative/collection costs (limited to 3% of the first $500,000 of gross proceeds per year and 1% of remaining gross receipts).
  • Promote travel and tourism: Activities to advertise/market areas, publish promotional materials, conduct market research, and related administrative costs.
  • Tourism-related expenditures: Expenditures aimed at increasing use of accommodations, meeting facilities, or attracting tourists/business travelers, including capital expenditures for tourism.

5) Beaufort County District B Tourism Development Authority

  • Upon adoption of the tax levy, the County must create the Authority as a public entity under the Local Government Budget and Fiscal Control Act.
  • Governance: Board composition must include at least one-third affiliated with tax-collecting businesses in the district and at least one-half active in travel/tourism promotion; the County Board designates a chair.
  • Officers and meetings: Finance Officer of Beaufort County serves as ex officio finance officer; the Authority sets meeting rules and holds meetings as called by the chair.
  • Reporting: The Authority must provide quarterly and annual financial reports to the Beaufort County Board of Commissioners detailing receipts and expenditures.

6) Preemption and Scope Clarification

  • Subsection (g) of G.S. 153A-155 applies to counties/counties districts that levy an occupancy tax, with explicit listing of counties/districts affected by the provision; this act excludes or clarifies applicability where conflicts arise with local acts.

7) Effective Date

  • The act becomes law upon becoming effective.

Who Would Be Affected

  • Taxing District: Beaufort County District B (areas outside the City of Washington).
  • Taxpayers/Businesses: Short-term rental operators and accommodations within District B subject to the occupancy tax.
  • Tourism Sector: Tourism-related businesses, marketing organizations, and facilities within District B that benefit from tourism development funding.
  • Local Government: Beaufort County government and the newly created Beaufort County District B Tourism Development Authority.

Procedural/Timelines

  • The bill specifies creation of the district, establishment of the Tourism Development Authority, and the tax levy process, including quarterly distributions and reporting requirements.
  • The act references administrative steps aligning with existing county tax administration processes (G.S. 153A-155).

If you’d like, I can provide a plain-language quick-lookup glossary of terms (e.g., “net proceeds,” “promote travel and tourism”) or a comparison to existing occupancy tax structures in nearby counties.

Compiled from official sources — confirm details with the bill’s official record.

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