North Carolina § 160A-215 - Uniform provisions for room occupancy taxes.

§ 160A-215. Uniform provisions for room occupancy taxes.

Scope. - This section applies only to municipalities the General Assembly has authorized to levy room occupancy taxes. For the purpose of this section, the term "city" means a municipality. 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 city 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 city shall administer a room occupancy tax it levies. A room occupancy tax is due and payable to the city 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 city. 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 city 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 city 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 city may be repealed or reduced by a resolution adopted by the governing body of the city. 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 cities 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 Beech Mountain District W, to the Cities of Belmont, Conover, Eden, Elizabeth City, Gastonia, Goldsboro, Greensboro, Hickory, High Point, Jacksonville, Kings Mountain, Lake Santeetlah, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Monroe, Mount Airy, Mount Holly, Reidsville, Roanoke Rapids, Salisbury, Sanford, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Selma, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, Yanceyville, to the municipalities in Avery and Brunswick Counties, and to Saluda District D. 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 city. The taxing city shall design and furnish to all appropriate businesses and persons in the city the necessary forms for filing returns and instructions to ensure the full collection of the tax. An operator of a business who collects a room occupancy tax may deduct from the amount remitted to the taxing city a discount equal to the discount the State allows the retailer for State sales and use tax. History (1997-361, s. 4; 1997-364, s. 5; 1997-410, s. 3; 1997-447, s. 2; 1998-112, s. 4; 1999-258, s. 3; 1999-302, s. 2; 2000-103, s. 9; 2001-11, s. 2; 2001-365, s. 3; 2001-434, s. 9; 2001-439, s. 18.1; 2002-94, s. 4; 2002-95, s. 3; 2002-138, s. 2; 2002-139, s. 2; 2002-159, s. 62; 2003-281, s. 14; 2004-105, s. 3; 2004-170, ss. 36(b), 42(b); 2004-199, s. 60(b); 2005-16, s. 3; 2005-46, s. 2.3; 2005-49, s. 3; 2005-220, s. 5; 2005-233, s. 6.2; 2005-435, s. 45; 2006-118, s. 4; 2006-120, ss. 8.2, 10.2; 2006-148, s. 3; 2006-162, s. 20(b); 2006-164, s. 3; 2006-167, s. 3; 2006-264, ss. 19, 81(a); 2007-224, s. 6; 2007-317, s. 3; 2007-340, s. 10; 2007-484, s. 43; 2007-527, s. 42; 2008-64, s. 2; 2008-134, s. 12(c); 2009-169, s. 8; 2009-291, s. 2; 2009-428, s. 4; 2009-429, s. 8; 2010-31, s. 31.6(e), (f); 2010-78, s. 11; 2010-123, s. 10.2; 2011-69, s. 2; 2011-170, s. 6; 2012-107, s. 2; 2013-351, s. 1.3; 2015-102, s. 2; 2017-202, s. 9.1(a); 2018-5, s. 38.10(f); 2019-246, s. 4(f).) Local Modification. - City of Belmont: 2005-220 (as to subsection (g)); 2017-48, s. 1 (as to subsection (g)); city of Greensboro: 1999, c. 302, ss. 1, 2. 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, 2001-484, 2002-94, 2002-95, as amended by Session Laws 2007-340, s. 1, 2002-138 and 2002-139, Session Laws 2003-281, ss. 12, 13, and Session Laws 2009-169, authorize the affected localities (the counties of Anson, Avery, Buncombe, Cabarrus, Carteret, Cumberland, Dare, Durham, Montgomery, Pender, Richmond, Rowan, Stanly, and Vance, the cities of Conover, Gastonia, Hickory, Kings Mountain, Lincolnton, Monroe, Mount Airy, North Topsail Beach, and Wilmington, the towns in Avery county and the towns of Banner Elk, Beech Mountain, Blowing Rock, Carolina Beach, Carrsboro, Jonesville, Kure Beach, Selma, Smithfield, Wilkesboro, and Wrightsville Beach, and the Township of Averasboro in Harnett County) to levy additional occupancy taxes for tourism promotion and development. Session Laws 2011-69 authorizes the Town of Hillsborough to levy additional occupancy taxes for tourism promotion and development. Editor's Note. - Session Laws 1997-361, s. 4 enacted this section and made it effective to the Cities of Lumberton and Shelby only. Session Laws 1997-364, s. 5 also enacted this section, making it effective to municipalities in Brunswick County. Session Laws 1997-410, s. 3 made this section applicable to the City of Mount Airy. Session Laws 1997-447, s. 2 made this section applicable to the Cities of Goldsboro, Lumberton, Mount Airy and Shelby and to the municipalities in Brunswick County. Session Laws 1998-112, s. 4 added the City of Statesville and the Town of St. Pauls to the list of localities to which this section applies. Session Laws 1999-258, s. 3 added the Town of Mooresville to this list, and Session Laws 1999-302, s. 2 added the City of Greensboro. The section has been codified at the direction of the Revisor of Statutes. Session Laws 2002-94, s. 4 inserted "and Seven Devils District W" in subsection (g). Session Laws 2002-159, s. 62, repealed that amendment, and thus G.S. 160A-215(g) is set out without giving effect to Session Laws 2002-94, s. 4. Session Laws 2006-120, s. 8.2, had inserted "Boiling Springs" in subsection (g); however, that insertion of "Boiling Springs" was repealed, pursuant to the terms of Session Laws 2006-120, s. 10.2, upon the passage of Session Laws 2006-148, s. 3, which also inserted "Boiling Springs" in subsection (g). Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" 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(q), made the amendment to subsection (c) of this section by Session Laws 2019-246, s. 4(f), effective February 1, 2020, and applicable to sales occurring on or after that date. Session Laws 2019-246, s. 4(o), is a severability clause. Effect of Amendments. - Session Laws 2004-105, s. 3, effective July 16, 2004, inserted "Franklin" in the list in subsection (g). Session Laws 2004-170, ss. 36.(b), effective October 1, 2004, substituted "20th day" for "fifteenth day" in the second sentence of subsection (d). Session Laws 2005-16, s. 3, as amended by Session Laws 2006-264, s. 81(a), effective July 1, 2005, inserted "Elizabeth City" in subsection (g). Session Laws 2005-46, s. 2.3, effective May 17, 2005, inserted "Roanoke Rapids" in subsection (g). Session Laws 2005-49, s. 3, effective May 18, 2005, inserted "West Jefferson" in subsection (g). Session Laws 2005-220, s. 5, effective July 26, 2005, in subsection (g), inserted "Belmont," and "Troutman." Session Laws 2005-233, s. 6.2, effective July 28, 2005, inserted "Eden," and "Reidsville" in subsection (g). Session Laws 2005-435, s. 45, effective September 27, 2005, in subsection (d), substituted "15th" for "20th" in the second sentence and "20th" for "fifteenth" in the third sentence. Session Laws 2006-118, s. 4, effective July 13, 2006, in subsection (g), inserted "Dobson, Elkin" and inserted "Pilot Mountain". Session Laws 2006-120, s. 8.2, effective July 17, 2006, in subsection (g), inserted "Benson" and "Kenly". Session Laws 2006-148, s. 3, effective July 20, 2006, in subsection (g), inserted "Boiling Springs" and "Tryon". Session Laws 2006-162, s. 20(b), effective July 24, 2006, substituted "20th day" for "15th day" in the second sentence in subsection (d). Session Laws 2006-164, s. 3, effective July 26, 2006, inserted "Ahoskie" in subsection (g). Session Laws 2006-167, s. 3, effective July 27, 2006, inserted "Burgaw" in subsection (g). Session Laws 2006-264, s. 19, effective August 27, 2006, in subsection (g), inserted "Jonesville" and made minor punctuation changes. Session Laws 2007-224, s. 6, as amended by Session Laws 2007-484, s. 43, and Session Laws 2007-527, s. 42, effective July 17, 2007, in subsection (g), deleted "and" preceding "Wrightsville Beach" and added "and Yanceyville." Session Laws 2007-317, s. 3, effective July 30, 2007, added "Dallas" following "Carrboro" in subsection (g). Session Laws 2007-340, s. 10, effective August 2, 2007, added "Yadkinville, and" in subsection (g). Session Laws 2008-64, s. 2, effective July 8, 2008, inserted "Leland" in subsection (g). Session Laws 2008-134, s. 12(c), effective July 28, 2008, in subsection (c), divided the subsection into the present three paragraphs, added the third and fourth sentences to the first paragraph, and made related changes. Session Laws 2009-169, s. 8, effective June 25, 2009, inserted "Conovor" and "Hickory" in subsection (g). Session Laws 2009-291, s. 2, effective July 13, 2009, inserted "Boone" in subsection (g). Session Laws 2009-248, s. 4, effective August 6, 2009, inserted "Salisbury" and "Murfreesboro" in subsection (g). Session Laws 2009-429, s. 8, effective August 6, 2009, inserted "Jacksonville," "Lenoir," "Lowell, " "Mount Holly," "Cramerton," "McAdenville," and "Ranlo" in subsection (g). Session Laws 2010-78, s. 11, effective July 9, 2010, inserted "Bermuda Run," "Cooleemee," "Mocksville," and "Pembroke" in subsection (g). Session Laws 2011-69, s. 2, effective May 11, 2011, inserted "Hillsborough" in subsection (g). Session Laws 2011-170, s. 6, effective June 17, 2011, inserted "Grover" and "Swansboro" in subsection (g). Session Laws 2012-107, s. 2, effective June 28, 2012, inserted "Fontana Dam" in subsection (g). Session Laws 2013-351, s. 1.3, effective July 25, 2013, added "Robbinsville" in subsection (g). Session Laws 2015-102, s. 2, effective June 22, 2015, inserted "Lake Santeetlah," after "Kings Mountain," in the third sentence of subsection (g). Session Laws 2017-202, s. 9.1(a), effective August 3, 2017, in subsection (g), inserted "Sanford" and substituted "Yadkinville, Yanceyville, to the municipalities in Avery and Brunswick Counties, and to Saluda District D" for "Yadkinville, and Yanceyville, and to the municipalities in Avery and Brunswick Counties." Session Laws 2018-5, s. 38.10(f), 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(f), in subsection (c), substituted "A rental agent or a facilitator, as defined in G.S. 105-164.4F," for "An accommodation facilitator, as defined in G.S. 105-164.3,"; substituted "rental agent" for "accommodation." For effective date and applicability, see editor's note.