SB 132 — Swannanoa Valley Tourism Development Authority (TDA)
Status & key dates
- Bill number: SB 132 (Swannanoa Valley TDA)
- Introduced: January 23, 2025 (first reading passed)
- Subject areas: local occupancy (hotel) tax; tourism development authorities; Buncombe County; local government finance and economic development.
Purpose / intent
- Authorize creation of a new Swannanoa Valley Tourism Development Authority and direct a portion of Buncombe County’s existing room occupancy (hotel) tax receipts from specified townships to that authority. The intent is to target tourism marketing, product development, and legacy (capital/infrastructure) investments in the Swannanoa Valley area while preserving a countywide tourism funding stream.
Main provisions and changes
- Tax authority continues: Buncombe County may levy up to 2% room occupancy/tourism development tax, administered under G.S. 153A‑155 (no change to statewide ceiling).
- Revenue allocation (new):
- On a quarterly basis, “net proceeds” (gross proceeds less county collection/admin costs, capped at 5% of gross) from the county occupancy tax collected in three Buncombe townships — Broad River (28), Black Mountain (25), and Swannanoa (21) — are remitted to the new Swannanoa Valley Tourism Development Authority.
- The remainder of county occupancy net proceeds stays with the existing Buncombe County Tourism Development Authority.
- Use of funds (Buncombe County TDA — unchanged structure summarized):
- Two‑thirds of that Authority’s funds are restricted to tourism marketing/sales/promotion and administrative costs (administration capped at 20% of net proceeds for the fiscal year).
- The remaining one‑third is split evenly between:
- Tourism Product Development Fund — for capital projects expected to increase lodging patronage (grants, loan guarantees, debt participation allowed; for‑profit entities are not eligible recipients).
- Legacy Investment From Tourism Fund — for tourism‑related capital projects, infrastructure, natural resource enhancement, maintenance and rehabilitation, and project administration; projects must demonstrate benefits to visitors and residents.
- Governance and approvals:
- Product Development and Legacy Investment committees review applications and make recommendations to the Authority.
- Awards or loan guarantees from either fund require a 3/4 vote of current voting Authority members.
- Limits: the Authority may accumulate funds; it cannot commit more than 33% of average net funds (3‑year rolling average) to debt service for any one project for a period exceeding 15 years; the Authority cannot be the sole source for any debt service.
- Product Development Committee must have a majority who are lodging owners/operators (hotels/motels/B&Bs). Applicants must submit feasibility studies and estimated new room nights.
Who is affected
- Lodging businesses and short‑term accommodations in the specified Buncombe townships (Broad River, Black Mountain, Swannanoa) — funding directed to support marketing and projects intended to increase bookings/visitation.
- Local governments: Buncombe County continues tax collection duties; the new Swannanoa Valley TDA will be a new local public entity receiving defined revenues.
- Nonprofit and public projects that meet the eligibility criteria for tourism product and legacy investments (note: for‑profit applicants are ineligible for direct grants from the Product Development Fund).
- Local residents and infrastructure (projects must consider visitor/resident balance for legacy funds).
Procedural / timeline notes
- Tax collection and remittance follow established county procedures (G.S. 153A‑155) and occur quarterly.
- Award/guarantee actions require committee review and a 3/4 Authority vote.
- Administrative caps and debt‑service commitment limits are explicit in the bill to constrain operating use and long‑term fiscal exposure.
Potential impacts (summary)
- Provides a dedicated, geographically targeted revenue stream for tourism marketing and capital projects in the Swannanoa Valley area, which could accelerate visitor‑focused development and preservation projects.
- Places restrictions intended to keep funds focused on capital and marketing rather than routine operations; requires feasibility and room‑night projections, and imposes checks on long‑term debt commitments.
- May increase project funding opportunities (grants, loan guarantees) for public/nonprofit initiatives but excludes for‑profit entities from certain direct grants.
- Implementation will require establishment of the new Authority and committees, and coordination of quarterly remittance procedures between Buncombe County and the new Authority.
For more detail: see Part VI (Buncombe Occupancy Tax) amendments and the bill’s Sections governing remittance, fund structure, committee duties, and approval thresholds.
