North Carolina § 153A-155 - Uniform provisions for room occupancy taxes.

§ 153A-155. Uniform provisions for room occupancy taxes.

Scope. - This section applies only to counties the General Assembly has authorized to levy room occupancy taxes. Levy. - A room occupancy tax may be levied only by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto. A room occupancy tax shall become effective on the date specified in the resolution levying the tax. That date must be the first day of a calendar month, however, and may not be earlier than the first day of the second month after the date the resolution is adopted. Collection. - A retailer who is required to remit to the Department of Revenue the State sales tax imposed by G.S. 105-164.4(a)(3) on accommodations is required to remit a room occupancy tax to the taxing county on and after the effective date of the levy of the room occupancy tax. The room occupancy tax applies to the same gross receipts as the State sales tax on accommodations and is calculated in the same manner as that tax. An accommodation facilitator, as defined in G.S. 105-164.3, has the same responsibility and liability under the room occupancy tax as the accommodation facilitator has under the State sales tax on accommodations. Administration. - The taxing county shall administer a room occupancy tax it levies. A room occupancy tax is due and payable to the county finance officer in monthly installments on or before the 20th day of the month following the month in which the tax accrues. Every person, firm, corporation, or association liable for the tax shall, on or before the 20th day of each month, prepare and render a return on a form prescribed by the taxing county. The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied. A room occupancy tax return filed with the county finance officer is not a public record and may not be disclosed except in accordance with G.S. 153A-148.1 or G.S. 160A-208.1. Penalties. - A person, firm, corporation, or association who fails or refuses to file a room occupancy tax return or pay a room occupancy tax as required by law is subject to the civil and criminal penalties set by G.S. 105-236 for failure to pay or file a return for State sales and use taxes. The governing board of the taxing county has the same authority to waive the penalties for a room occupancy tax that the Secretary of Revenue has to waive the penalties for State sales and use taxes. Repeal or Reduction. - A room occupancy tax levied by a county may be repealed or reduced by a resolution adopted by the governing body of the county. Repeal or reduction of a room occupancy tax shall become effective on the first day of a month and may not become effective until the end of the fiscal year in which the resolution was adopted. Repeal or reduction of a room occupancy tax does not affect a liability for a tax that was attached before the effective date of the repeal or reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal or reduction. Use. - The proceeds of a room occupancy tax shall not be used for development or construction of a hotel or another transient lodging facility. Applicability. - Subsection (c) of this section applies to all counties and county districts that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection (c) supersedes that provision. The remainder of this section applies only to Alleghany, Anson, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret, Caswell, Chatham, Cherokee, Chowan, Clay, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Edgecombe, Forsyth, Franklin, Graham, Granville, Halifax, Haywood, Henderson, Jackson, Madison, Martin, McDowell, Montgomery, Moore, Nash, New Hanover, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Swain, Transylvania, Tyrrell, Vance, Washington, Wayne, and Wilson Counties, to Harnett County District H, New Hanover County District U, Surry County District S, Watauga County District U, Wilkes County District K, Yadkin County District Y, and the Township of Averasboro in Harnett County and the Ocracoke Township Taxing District. If a taxable accommodation is furnished as part of a package, the bundled transaction provisions in G.S. 105-164.4D apply in determining the sales price of the taxable accommodation. If those provisions do not address the type of package offered, the person offering the package may determine an allocated price for each item in the package based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business and calculate tax on the allocated price of the taxable accommodation. A retailer must separately state the room occupancy tax. Room occupancy taxes paid to a retailer are held in trust for and on account of the taxing county. The taxing county shall design and furnish to all appropriate businesses and persons in the county the necessary forms for filing returns and instructions to ensure the full collection of the tax. A retailer who collects a room occupancy tax may deduct from the amount remitted to the taxing county a discount equal to the discount the State allows the retailer for State sales and use tax. History (1997-102, s. 3; 1997-255, s. 2; 1997-342, s. 2; 1997-364, s. 3; 1997-410, s. 6; 1998-14, s. 2; 1999-155, s. 2; 1999-205, s. 2; 1999-286, s. 2; 2000-103, s. 5; 2001-162, s. 2; 2001-305, s. 2; 2001-321, s. 3; 2001-381, s. 10; 2001-434, s. 1; 2001-439, s. 18.2; 2001-468, s. 3; 2001-480, s. 14; 2001-484, s. 2; 2002-138, s. 5; 2004-106, s. 2; 2004-120, s. 3; 2004-170, ss. 36(a), 42(a); 2004-199, s. 60(a); 2005-16, s. 2; 2005-46, s. 1.2; 2005-53, s. 2; 2005-197, s. 6; 2005-233, s. 6.1; 2006-120, s. 8.1; 2006-127, s. 2; 2006-128, s. 6; 2006-129, s. 2; 2006-162, s. 20(a); 2006-167, s. 7(e); 2006-264, s. 81(a); 2007-19, s. 3; 2007-63, s. 3; 2007-223, s. 3; 2007-224, s. 5; 2007-265, s. 2; 2007-315, s. 2; 2007-318, s. 2; 2007-337, s. 3; 2007-340, s. 9; 2007-527, ss. 23, 43; 2008-33, s. 2; 2008-134, s. 12(b); 2008-187, s. 31; 2009-112, s. 4; 2009-157, s. 2; 2009-297, s. 3; 2010-31, ss. 31.6(c), (d); 2010-78, s. 10; 2010-123, s. 10.2; 2011-113, s. 4; 2011-115, s. 4; 2011-170, s. 5; 2012-100, s. 1; 2012-144, s. 4; 2012-194, s. 35; 2013-255, s. 3; 2015-128, s. 7; 2015-255, s. 6.1; 2017-202, s. 9.1(b); 2018-5, s. 38.10(e); 2019-246, s. 4(g).) Tourism Promotion and Development. - Session Laws 2001-162, 2001-305, 2001-321, 2001-365, 2001-381, as amended by 2005-120 and 2005-435, s. 52, as rewritten and recodified by 2007-112, s. 1, 2001-434, 2001-439, 2001-480, as amended by Session Laws 2002-36, and 2001-484 authorize the affected localities (the counties of Anson, Avery, Buncombe, Cabarrus, Carteret, Cumberland, Dare, Durham, Montgomery, Pender, Richmond, Rowan, Stanly, Washington and Vance, the Cities of Durham, Gastonia, Kings Mountain, Lincolnton, Monroe, and North Topsail Beach, the towns of Beech Mountain, Carrboro, Selma, Smithfield, Wilkesboro and Averasboro Township in Harnett County) to levy additional occupancy taxes for tourism promotion and development. Session Laws 2002-95 authorizes New Hanover County to levy additional occupancy taxes for tourism promotion and development. Editor's Note. - Session Laws 1997-102, s. 3 enacted this section and made it effective to Madison County only. Session Laws 1997-255, s. 2 made this section applicable to Nash County. Session Laws 1997-342, s. 2 made this section applicable to Randolph County. Session Laws 1997-364, s. 3 made this section applicable to Brunswick and Person Counties. Session Laws 1997-410, s. 6 made this section applicable to Avery and Scotland Counties. Session Laws 1998-14, s. 2 made this section applicable to Davie County. Session Laws 1999-155, s. 2 made this section applicable to Currituck County. Session Laws 1999-205, s. 2 made this section applicable to Transylvania County. Session Laws 1999-286, s. 2 made this section applicable to Craven County. This section has been codified at the direction of the Revisor of Statutes. Session Laws 2001-480, s. 6(d), effective December 5, 2001, except that any taxes levied under this section become effective March 1, 2002, provides that G.S. 153A-155(a) and G.S. 153A-155(b) apply to Durham County. Session Laws 2001-480, s. 6(e), provides that Part III of the act [which inserted "Durham" in subsection (g)] is effective only if Durham County has, prior to February 1, 2002, levied all of the taxes authorized by 6(a), 6(b), and 6(c) of the act. Session Laws 2011-330, s. 23, provides: "A facilitator is not liable for an overcollection or undercollection of sales tax or local occupancy tax if the facilitator has made a good faith effort to comply with the law and collect the proper amount of tax as the result of the change under Section 31.6 of S.L. 2010-31 regarding a facilitator's collection and remittance obligations imposed under G.S. 105-164.4(a)(3), 153A-155(c), and 160A-215(c). This applies only to the period beginning January 1, 2011, and ending April 1, 2011." Session Laws 2019-246, s. 4(q), made the amendment to subsection (c) of this section by Session Laws 2019-246, s. 4(g), effective February 1, 2020, and applicable to sales occurring on or after that date. Session Laws 2019-246, s. 4(n), provides: "There is no obligation to collect the sales and use tax required by this section retroactively." Session Laws 2019-246, s. 4(o), is a severability clause. Effect of Amendments. - Session Laws 2004-106, s. 2, effective July 16, 2004, inserted "Alleghany" in the list of counties in subsection (g). Session Laws 2004-120, s. 3, effective July 17, 2004, inserted "Camden" in the list of counties in subsection (g). Session Laws 2004-170, s. 36(a), effective October 1, 2004, substituted "20th" for "15th" in subsection (d). Session Laws 2005-16, s. 2, as amended by Session Laws 2006-264, s. 81(a), effective July 1, 2005, inserted "Pasquotank" in subsection (g). Session Laws 2005-46, s. 1.2, effective May 17, 2005, inserted "Halifax" in subsection (g). Session Laws 2005-53, s. 2, effective May 18, 2005, inserted "Duplin" in subsection (g). Session Laws 2005-197, s. 6, effective July 18, 2005, inserted "to Watauga County District U" in subsection (g). Session Laws 2005-233, s. 6.1, effective July 28, 2005, inserted "Franklin" and "Rockingham" in subsection (g). Session Laws 2006-120, s. 8.1, effective July 17, 2006, inserted "Clay," near the beginning of subsection (g). Session Laws 2006-127, s. 2, effective July 19, 2006, inserted "Martin," in the middle of subsection (g). Session Laws 2006-128, s. 6, as amended by Session Laws 2007-527, s. 23, effective July 19, 2006, added the Ocracoke Township Taxing District to the list of localities to which this section applies. Session Laws 2006-129, s. 2, effective July 19, 2006, inserted "Chowan," in the middle of subsection (g). Session Laws 2006-162, s. 20(a), effective July 24, 2006, substituted "20th day" for "15th day" near the middle of the second sentence in subsection (d). Session Laws 2006-167, s. 7(e), effective September 1, 2006, and applicable to room occupancy and tourism development taxes levied on and after that date, inserted "New Hanover County District U," in the middle of subsection (g). Session Laws 2007-19, s. 3, effective April 23, 2007, inserted "Perquimans," in subsection (g). Session Laws 2007-63, s. 3, effective June 7, 2007, inserted "Sampson," in subsection (g). Session Laws 2007-223, s. 3, effective July 16, 2007, inserted "Northampton," in subsection (g). Session Laws 2007-224, s. 5, effective July 17, 2007, inserted "Caswell," in subsection (g). Session Laws 2007-265, s. 2, effective July 26, 2007, inserted "Burke," near the beginning of subsection (g). Session Laws 2007-315, s. 2, effective July 30, 2007, inserted "McDowell," in the middle of subsection (g). Session Laws 2007-337, s. 3, effective August 2, 2007, inserted "Haywood," in subsection (g). Session Laws 2007-340, s. 9, effective August 2, 2007, inserted "to Yadkin County District Y," near the end of subsection (g). Session Laws 2007-527, s. 43, effective August 31, 2007, inserted "Swain," in subsection (g). Session Laws 2007-318, s. 2, as amended by Session Laws 2008-187, s. 31, effective August 7, 2008, inserted "Chatham" in subsection (g). Session Laws 2008-33, s. 2, effective June 30, 2008, inserted "Cherokee" in subsection (g). Session Laws 2008-134, s. 12(b), effective July 28, 2008, rewrote subsection (c). Session Laws 2009-112, s. 4, effective June 16, 2009, inserted "to Surry County District S" in subsection (g). Session Laws 2009-157, s. 2, effective June 23, 2009, inserted "Forsyth" in subsection (g). Session Laws 2009-297, s. 3, effective July 16, 2009, substituted "Washington, and Wilson" for "and Washington" in subsection (g). Session Laws 2010-78, s. 10, effective July 9, 2010, inserted "to Wilkes County District K" in subsection (g). Session Laws 2010-31, s. 31.6(c) and (d), effective January 1, 2011, and applicable to gross receipts derived from the rental of an accommodation that a consumer occupies or has the right to occupy on or after that date, rewrote subsection (c); and in subsection (g), added "Applicability. - " and the first two sentences, and in the last sentence, added "The remainder of" at the beginning. Session Laws 2011-113, s. 4, effective June 9, 2011, inserted "Moore" in subsection (g). Session Laws 2011-115, s. 4, effective June 9, 2011, inserted "Rutherford" in subsection (g). Session Laws 2011-170, s. 5, effective June 17, 2011, inserted "Jackson" in subsection (g). Session Laws 2015-128, s. 7, effective June 29, 2015, inserted "Graham," preceding "Granville" in subsection (g). Session Laws 2015-255, s. 6.1, effective September 29, 2015, inserted "Wayne," preceding "and Wilson Counties" in subsection (g). Session Laws 2017-202, s. 9.1(b), inserted "Harnett County District H" and made stylistic changes in the last sentence of subsection (g). Session Laws 2018-5, s. 38.10(e), effective June 12, 2018, substituted "G.S. 105-164.4F" for "G.S. 105-164.4(a)(3)" in the third sentence of the first paragraph of subsection (c). Session Laws 2019-246, s. 4(g), in subsection (c), in the last sentence of the first paragraph, substituted "An accommodation facilitator, as defined in G.S. 105-164.3" for "A rental agent or a facilitator, as defined in G.S. 105-164.4F" and substituted "accommodation facilitator" for "rental agent or facilitator." For effective date and applicability, see editor's note.