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Bill Summary · HB 143

Summary — HB 143: Maysville Occupancy Tax

Main purpose

Authorize the Town of Maysville, NC to levy a local room occupancy (hotel/motel) tax and establish a local Tourism Development Authority to receive and spend the proceeds to promote travel and tourism and fund tourism‑related expenditures.

Key provisions

  • Authorization and rate
    • The Maysville Board of Commissioners may levy a room occupancy tax of up to 6% of gross receipts from rentals of accommodations that are subject to State sales tax (G.S. 105‑164.4(a)(3)). This tax is in addition to state and other local sales taxes.
  • Administration and penalties
    • The tax must be levied, administered, collected, and (if repealed) handled under G.S. 160A‑215. Penalties provided in that statute apply to this tax.
  • Distribution and permitted uses
    • Net proceeds are remitted quarterly to a locally created Maysville Tourism Development Authority (TDA).
    • At least two‑thirds (≥ 66.7%) of funds must be used to “promote travel and tourism” (marketing, advertising, promotional materials, market research, and related admin expenses).
    • The remainder may be used for other “tourism‑related expenditures” as determined by the TDA, including tourism‑related capital projects designed to increase use of local accommodations/meeting facilities.
  • Definition of net proceeds (administration cost cap)
    • Net proceeds = gross proceeds less collection/admin cost as determined by the town finance officer, capped at:
    • up to 3% of the first $500,000 of gross proceeds collected each year; and
    • up to 1% of the remaining annual gross receipts.
  • Creation and membership of Tourism Development Authority
    • When the Board adopts the occupancy tax resolution it must also create the TDA as a public authority under the Local Government Budget and Fiscal Control Act.
    • Membership requirements: at least one‑third of members affiliated with local businesses that collect the tax; at least one‑half must be actively involved in promotion of travel and tourism.
    • The Town Finance Officer serves as the TDA’s ex officio finance officer.
    • The TDA must adopt procedural rules, meet at the chair’s call, and report quarterly and annually to the Board of Commissioners on receipts and expenditures.
  • Statutory placement
    • The act amends applicability language in G.S. 160A‑215(g) to include Maysville among municipalities authorized to impose an occupancy tax under that statute.
  • Effective date
    • The act takes effect when it becomes law.

Who is affected

  • Town of Maysville (may adopt the tax by resolution).
  • Visitors and customers who rent local accommodations (tax added to room charges).
  • Local lodging businesses, which would collect and remit the tax.
  • The newly created Maysville Tourism Development Authority (recipient and spender of net proceeds).
  • Town finance/administrative staff (collection, reporting, oversight responsibilities).

Potential fiscal/operational impacts

  • New local revenue stream if the town elects to impose the tax; magnitude depends on lodging activity.
  • Local administrative cost allowed (capped as described) to cover collection/administration.
  • Establishing and operating the TDA will create governance and reporting responsibilities for the town and appointees.
  • Funds are restricted—majority must be used for marketing/promotional activities and remainder for tourism‑related projects.

Procedural note

  • The Board of Commissioners must adopt a local resolution to levy the tax and simultaneously establish the TDA. Once adopted the tax is administered under state law G.S. 160A‑215 and subject to its filing/collection/penalty rules.

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

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